Press Release: Commission approves state aid contained in UK’s High Technology Fund for early stage enterprises

On 12.7.00 the European Commission authorised, under the state aid rules, the creation by the UK authorities of a fund to encourage risk capital investments in early stage enterprises in high technology sectors. Under the measure, the UK authorities will contribute £20 million (€31 million) to the fund which will also include other investors. The other investors will participate on more favourable terms than the authorities, which brings the measure within the definition of state aid. The fund will then take minority stakes in venture capital funds focussed on early stage high technology companies. The aim of the measure is to encourage greater involvement by institutional investors in this type of investment activity and to increase the volume of funds available.

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