Majority of UK government-backed venture investments fail

The revelation casts doubts over the use of taxpayers’ money being put to work in venture funds that back UK businesses.

According to the report, venture funds that received capital from the UK government’s Department for Business, Innovation and Skills have seen 189 investments written off where businesses failed, or generated exits where proceeds were below the cost of investment.

The National Audit Office has calculated that the 45 profitable exits have generated net proceeds of £250m (€276.1m).

The news comes as the UK Innovation Investment Fund, a government-backed fund of funds set up to stimulate the growth of innovative British companies, has just announced that it will be giving at least £150m (€165.6m) to fund of funds managers Hermes and the European Investment Fund.

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