The new trend of tech start-up companies has seen a rise in the formation of Venture Capital Companies (VCCs) in North America, with exponential expansion in Silicon Valley and New York.  Venture funds rely on private investors, government funds and other capital initiatives.  According to the illustrious Midas List of 2012 the exit of Facebook bolstered top venture capital firms with Jim Breyers of Accel Partners leading the capital race.  Other jaw dropping exits were the acquisition of Instagram by Facebook and the IPOs of Kayak and Yelp, to name but a few. 

In the UK, where such companies are traded as Venture Capital Trusts (VCTs) – a multi million pound industry has come to life. VCTs are funds that invest in small businesses or companies listed on the smaller companies register, with tax incentives for private investors.   The Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) are also other progressive policies that have been introduced by the UK government to encourage entrepreneurs and investors alike.   Tech start-up companies have used these schemes to their advantage and East London Tech City has seen unprecedented growth.

Download the full article above.

Written by Reinhardt Biermann, Candidate Attorney, Trade Mark litigation, Adams & Adams

Article verified by Darren Olivier, Partner, Trade Mark litigation and prosecution