3i to snub tech start-ups
Technology minnows' fortunes take a major hit as private equity giant announces that it will no longer invest in that sector
Private equity giants have turned their backs on the tech start-up companies,
as the fledglings continue to be denied key tax breaks.
3i has now said that it will stop sinking cash into technology minnows,
following the example of Apax Partners which stopped sinking cash into the
sector last summer.
The BVCA, the venture capital industry group, is lobbying for tax benefits
such as R&D tax credits to rejuvenate these businesses. ‘The BVCA has for
some time been calling for a range of measures to help foster a more successful
venture capital industry in the UK,’ BVCA chief executive Simon Walker told
‘These [companies] are currently denied access to a range of schemes
available to other small businesses. This is a legislative anomaly and it would
be easy to change.’