UK Proposes New Start-Up Fund as EU Finance Risks Drying Up – New York Times

Key details such as the size of the fund and how it will be financed are yet to be decided, and will be part of a government consultation with industry.

The finance ministry said the fund could either be a public-private partnership or start off as wholly public funded and then sold off after it had developed a track record.

It added that there was a general shortage of funding for British start-ups compared to their American competitors.

Just one in 10 British start-ups which receive initial funding progress to receive a fourth round of finance, compared with nearly a quarter in the United States, it said.

“The National Investment Fund will help address this gap,” the ministry said.

The United States accounts for more than half of start-ups globally which have reached a valuation of more than $1 billion, while 4 percent of the global total have come from Britain, the highest share in Europe.

($1 = 0.7615 pounds)

(Reporting by David Milliken, editing by Alister Doyle)

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UK Proposes New Start-Up Fund as EU Finance Risks Drying Up – New York Times}