According to research by
The dramatic rise was driven by significant increases in activity in both the information technology and services and retail sectors.
There are several potential reasons for the general increase in activity. Firstly, venture capital investors have increasingly recovered their confidence since the low ebb of 2002, improving the top level numbers. Secondly, 2005 saw significant fundraising activity by venture capital firms which have consequently been keen to invest in 2006. Thirdly, ongoing Government policy measures have helped improve the vibrancy of the UK venture capital market with, regional venture capital funds and other public sector backed funds making an important contribution.