British Telecommunications Plc has established a UKP3m venture capital fund called FutureStart to provide UKP50,000 to UKP150,000 in seed capital to start-up companies in less-favoured parts of the UK. It looks to make 40 to 50 investments over the first three to five years, in companies capable of growing to UKP1m turnover and turning a profit within five years. The holdings will be sold at the appropriate time and proceeds reinvested in new ventures. The fund expects to take a hands-on approach and to ask for a seat on the board in many cases.
