VC or Bust?

Are VC's abandoning the start-up sector?

Last week's London Technology Forum was focused rightly on some of the great innovative start-ups that are now going to market. A key plank in this journey of course is the ability to raise the capital necessary to execute one's business plan.

In the UK, that process may have just become a little harder.

This comment is based on the decision taken last week, by 3i, the former powerhouse of Europe's venture capital industry, to abandon early-stage investing in start-up companies, to focus on buy-outs, growth capital and infrastructure. That according to the analysts, is where the best returns in recent times have come from.

If this is the case, then the situation for start-ups becomes more fragile. There is an eco-system of other investors out there including angels, high net-worth individuals and incubators. But for scale, venture capital is often the only route.

For Pingar, these developments come at an interesting time. We are in what is probably best described as 'stealth mode' in regards to own own funding engagement. But it's interesting to take a broader industry perspective to understand just what challenges will now face many of those other great start-ups who joined us at the London Hilton, last week.