“The Business Growth Fund is wrong in terms of its pitch,” says Luke Johnson, co-founder of Risk Capital Partners in a video interview with Kimberly Romaine.

The former Channel 4 chairman and serial entrepreneur went on to say: "That space is very crowded with at least 50 providers of that sort of capital right here in the UK. There is no shortage of capital there, but there is certainly a gap further down," indicating the real gap is down at the angel investing level.

While EISs and VCTs go a way to plugging this, more can and should be done in terms of tax relief. "Very high risk projects need 100% tax relief on income tax for the equity invested," he says.

He goes on to say that returns will decrease on the back of lower leverage levels, though feels covenants have helped private equity deals retain restraint. "I do think that covenants can be a useful discipline. One of the benefits of a leveraged deal is that companies must be more austere and not waste cash, as they have a powerful focus to be as efficient as possible. It's healthy and such covenants are part of the key to PE's success."