Tech unicorn growth fund

A FUND to pump cash into the most promising tech companies after Brexit could be set up by the Government.

The money would help finance a generation of so- called ‘unicorns’, companies worth more than $1bn (£760m), the Treasury said yesterday.

It is part of moves to ensure venture capital keeps flowing into Britain’s tech sector after the country quits the European Union following last year’s vote.

Industry figures say there is no shortage of talent but companies here often find it much harder to raise investment capital for expansions than their rivals in the US.

In a bid to solve the problem, the Government has said it wants more money made available to help start-ups grow.

The Treasury has stopped short of saying how much the fund would be worth but said it would at least seek to replace cash invested by the European Investment Fund – a source of cash likely to be cut off once the UK leaves the EU.

That is worth an estimated £900m a year through the investments it makes in companies, and matches funding then pledged by private companies.

Ben Brabyn, head of Canary Wharf-based tech company hub Level39, said: ‘In areas where the UK already has a huge advantage, such as cyber-security and fintech, every pound of public money pledged can make a real difference in helping to scale up our businesses.’