The government have unveiled plans to provide £150m worth of funding for technology start-ups this year.

The funding will be provided by the government alongside private sector investors, and a target to reach £1bn within 10 years has been set.

The UK Innovation Investment Fund has been set up to address a lack of funding for venture capitalist groups, which have warned that hundreds of UK technology companies could fail due to a lack of funding.

"US funds are big enough to put tens of millions into a company and to finance follow-on funding. This will allow us to do the same in the UK," said Lord Drayson, minister for science and innovation.