The Corporate Venturing site hopes to make it possible for small businesses to gain management expertise from big companies; to enable small firms to get access to R&D facilities and financial support; and to allow large companies to benefit from an equity stake or co-ownership of intellectual property.
Small Business Minister Nigel Griffiths said:
"Small businesses are able to tap into the expertise of their bigger counterparts and reap the benefits of established facilities, while large companies will be able to benefit from the well-known dynamism and risk-taking potential of the UK's small business sector.
"The Government has already provided tax relief through the Corporate Venturing Scheme for large firms to invest in smaller higher risk companies, so I am delighted to be able to formally launch this complementary initiative and demonstrate the DTI's support for Corporate Venturing UK."
Under the Corporate Venturing Scheme, companies can obtain corporation tax relief at 20% on amounts invested in smaller companies for at least 3 years, can defer tax on any gain made on corporate venturing investments which are reinvested in another shareholding under the Scheme, and can claim relief against income for capital losses (net of corporation tax relief) on disposals of shares.
The DTI is providing £1.5 million over three years for the National Business Angels Network to operate Corporate Venturing UK.