In a letter published in today's (1st July 09) FT, Simon Walker stresses the need for Government to quickly deploy the fund-of-funds initiative
It is extremely heartening that the Government has announced a £150 million fund-of-funds initiative aimed squarely at the venture capital sector. This is an issue on which the British Private Equity and Venture Capital Association has campaigned for more than two years and I am delighted that the model we have advocated has been adopted and appreciate the support that others such as NESTA and the CBI have afforded us in our lengthy endeavours.
The crucial issue now, however, is speed. As a survey conducted by Populus for the BVCA in February, which was covered extensively in the FT at the time revealed, a large number of venture capital-backed companies which are associated with exceptionally interesting new ideas and products are facing considerable fundraising difficulties. It is absolutely essential that these companies do not fall victim to the recession, as what they have pioneered is very likely to be picked up by competitors from outside the United Kingdom. I therefore urge ministers to ensure that money starts to flow in weeks rather than months. If they act decisively and swiftly then this investment will produce exceptional returns.
Simon Walker,
Chief Executive,
British Private Equity and Venture Capital Association.
