§ 66. Mr. Gerald Bowden
asked the Paymaster General what is the trend in venture capital investment in small firms.
§ Mr. Trippier
There has been significant growth in venture capital investment in the United Kingdom during the last six years. The United Kingdom venture capital journal has reported aggregate investments in the United Kingdom by United Kingdom-based venture capital organisations of £110 million in 1982, £166 million in 1983 and £228 million in 1984. Comparable figures for 1985 are not yet available, but independent venture capital funds are reported to have raised total funds of £273 million against £193 million in 1984.
In 1984 approximately a quarter of total investment supported start ups or other early stage financings. In addition, direct investment by individuals under the business expansion scheme is providing significant amounts of equity finance for small firms.