The Department of Trade and Industry's Small Business Service (SBS) has announced a consultation into developing a US-style Small Business Investment Company scheme to boost the funding opportunities for small, high growth companies.
Building on the Regional Venture Capital Funds, the consultation will look at the ways in which the "equity gap" that faces many start-ups and early stage businesses can be bridged and how entrepreneurial investors might be encouraged to invest in fast-growing SMEs.
Sir David Cooksey, of Advent Partners and chairman of the Small Business Investment Taskforce, said: "There is no doubt that SBICs are behind the success of the US venture capital industry. Household names such as Federal Express, Apple and AOL benefited from initial investment by US SBICs and we are determined to replicate this success for small growing businesses in the UK."
