Venture capital research company Library House failed because the credit crunch hit its core market, according to its administrator.

Venture capital research company Library House failed because the credit crunch hit its core market, according to its administrator.

Neil Bennett, a partner at insolvency firm Leonard Curtis, says the business had been ‘spectacularly successful’ in providing research into VC deals, but foundered because ‘most VCs are concentrating on preserving rather than expanding their business’.

The company was caught in the midst of an expansion plan, ‘which under normal circumstances could expect to be wholly successful’, adds Bennett.

Cambridge-based Library House, which was founded by former Dragon’s Den star Doug Richard, had a turnover of £2 million in the year ending June 2008. Its assets were sold to the financial information division of Dow Jones in a deal announced earlier this week.

Bennett states, ‘The sale of the business as a going concern proved not to be possible, even though we contacted numerous interested parties including competitors and investors.’