Improving the sources of finance available to young companies looking for expansion capital is the main interest of the government's consultation, Bridging the Finance Gap, which is expected to report back before the end of the year.
The potential to make much money if a company does well is clearly a significant motivator for venture capital investment, but it is not always the main one.
For people who have set up and sold a business, the chance to get back in on the ground floor and make a difference is often the predominant motive. Nick Pannaman, who sold his video post-production business, TVP Group, four years ago and is looking for investment opportunities, says: "If it is in your blood to build a business, that is what you have to do. If I can use my experience to fast-track a company, that is good for me, for the company and for the economy."
