Backed by the London Development Agency and the European Development Fund LTF has an initial £15 million to invest. It will use this to support very early-stage technology ventures based in the Greater London area and will operate on a matched-fund basis, due to its Government backing. This means that the fund’s managers (led by 3i and Gresham Trust veteran Dr Tony Diment) will have to find other venture capitalists or business angels to invest alongside them.

The plan is for LTF to invest up to £1.5 million in qualifying businesses, via a series of tranches, over a period of time. These additional funding tranches will be made available subject to individual performance.

LTF chairman David McMeekin – who also heads up fellow London-focused investment vehicle The Capital Fund – says the group’s investment criteria will be diverse with all technology sectors, ‘except drug development’, being considered.