The Prime Minister has announced the creation of the UK Innovation Investment Fund to invest in technology-based businesses with high growth potential.

The new fund will focus on investing in growing small businesses, start-ups and spin-outs, in digital and life sciences, clean technology and advanced manufacturing.

The Department for Business, Innovation and Skills, with the Department of Energy and Climate Change and the Department of Health, will invest £150m alongside private sector investment on an equal basis known as pari-passu. The government believes this could leverage enough private investment to build a fund of up to £1bn over the next 10 years.

The UK Innovation Investment Fund forms part of the Government’s strategy for Building Britain’s Future.

Gordon Brown says: “This fund will help build Britain’s future by investing in key sectors. It will provide crucial support for our most promising start-ups and existing small companies just when they need it most.”

Andy Cartland, managing director of green recruiter Acre Resources, told Recruiter: “Any investment like this is really positive. The more new companies, the more jobs and the more opportunities for our candidates. It’s all good from our perspective.”