The lack of tech knowledge among UK venture capitalists is costing the country dearly, according to a report by RealBusiness.
Insufficient tech knowledge means venture capitalists in the UK are far more risk adverse and not prepared to offer money to tech businesses that they perceive to be risky, just because they don’t really understand everything that is involved.
In the US there are a lot more VCs that understand technology – for example, you might find an investor in California that was also a computer scientist who would be able to get to grips with new technological concepts a lot easier than someone with no background in the tech sector.
Unfortunately, access to this US finance often means that new and exciting UK startups have to move to Silicon Valley. Something has to be done about this because technology firms are the best chance that the UK has for sparking an economic recovery.