UK Minister of Science Lord Drayson calls for more investments in early stage scientific ventures

Whilst the UK venture capital industry remains in good health despite the financial crisis, it is behind in terms of funding technology start-ups, according to a speech given by Lord Drayson at the British Private Equity and Venture Capital Association's University Spin-Out event.

He acknowledged that £34bn was invested by BVCA members last year, but only around £200m of that amount was allocated to early stage technology companies in the UK.

However, he raised concerns over the lack of technology-focused venture capital investment in the UK, saying, 'when it comes to investing in early stage high tech start-ups, I suspect the industry is currently on life support'.

The minister concluded by offering a way forward, saying, 'We need to highlight the incredibly strong investment opportunities that lie in tackling some of the major global challenges facing our generation: energy, climate change, population growth and ageing.

'UK science offers the breakthrough technologies in everything from genetics to computer games, from plastic electronics to photo-voltaics, from regenerative medicine to renewable energy.'

Lord Drayson informed attendees of the BVCA University Spin-Out event that he has been involved with venture capital in many capacities during his career. As well as being the recipient of investment in businesses he ran at various stages of development over the past 20 years, he also sat on Oxford University's technology transfer board and on the university's venture capital fund board.

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