London Fund launched into equity gap

Guy
27 June 2005

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Nicky Gavron, deputy mayor of London, is launching the ТЃ15m venture capital fund, the London Technology Fund (LTF), on Monday 27 June 2005 at the Royal Society. The LTF will be funded by the London Development Agency (LDA) and the European Regional Development Fund. It will support technology start-ups throughout Greater London, helping to turn world class research into world class business.

This major initiative follows research carried out for the LDA, which showed the need for support and funding for high technology start-ups in London. It showed that high technology start-ups fall into the ‘equity gap’, where traditional venture capitalists are deterred from investing by the risks and uncertainties relative to other opportunities.

The LTF will address this market failure by providing finance, matched by other investors, to young businesses created by spin-outs from London’s universities and research institutes as well as start-ups by London’s entrepreneurs who wish to exploit the wide range of technologies established or emerging in the London economy.

The initiative is a key component of the network of support designed to help technology entrepreneurs in London, which includes programmes to help new technology companies become ‘investment ready’ and access to specialist proof-of-concept funds for the NHS Innovation Hubs and 22 of London’s university colleges.

The managing director of the London Technology Fund will be Dr Tony Diment. Dr Diment has a PhD in nuclear physics from Queen Mary, University of London and has over 20 years experience in venture capital.Dr Diment will be supported by a full time team, as well as a technical advisory board and a network of expert consultants who will provide specialist advice on the different technology sectors and help with management team building and mentoring.