Maggie Hartford reports on a new Government-backed matchmaking scheme which could put entrepreneurs in touch with potential financial backers . . .

A blind date system with a difference has been launched by Small Business Minister Mr Nigel Griffiths to introduce entrepreneurs and small companies to their perfect investor partner.

Corporate venturing enables small companies to enter into a relationship with a larger investor that will bring finance, contacts and facilities whilst allowing them to retain their own identity.

Key research from the DTI, CBI and Natwest has revealed a major barrier preventing small businesses in the UK getting involved with corporate venturing is the lack of a matchmaker.

This initiative is one of a number of activities the Small Business Service (SBS) is taking forward, with external partners, aimed at stimulating awareness and understanding of corporate venturing and offering practical support to potential partners.

The SBS has found its perfect partner for this initiative in the form of the National Business Angels Network (NBAN) and the £1.5m funding will be spent on building a new division which will exclusively work on methods enabling businesses to meet their perfect partner.

Mr Griffiths said: "Businesses are like people, with the right partner they flourish. That is why I am launching a 'blind date' for business to introduce companies and investors who would not otherwise meet.

"For any relationship to be successful you must both know exactly what you want to get out of it and be prepared for every eventuality, he added.

"We want to set down guidelines that will help both the investor and the invested make agreements which are in their interest.

"It will also help existing brokers by exposing them to small businesses looking for a partner.

"This Government wants to help entrepreneurs achieve their goals in the UK and what better way to do that but by enabling companies to help each other.

"No company has a monopoly on good technology or ideas. No company can develop everything in-house or find everything it wants on the market. Corporate venturing helps people keep a watching brief on new technology and maintain a competitive edge."

Two thirds of the US top 100 companies are thought to be either using or thinking of using corporate venturing as a means of finding new customers, new markets and new technologies, and yet the UK market remains relatively small.

Mr David Irwin, chief executive of the Small Business Service, welcomed the project.

"This is an exciting opportunity to make a real difference to the corporate venturing market in the UK," he said.

The SBS hopes that finding the right partner will enable more small firms to flourish and grow.

"We are also very pleased that this initiative is a result of further co-operation between ourselves and NBAN. We look forward to building on the productive relationships we already enjoy with NBAN."

Mr Michael Snyder, chairman of NBAN, believes initiatives like this are essential if we are to keep talent in the UK.

Mr Snyder said: "With this funding we aim to raise awareness of what corporate venturing is.

"Businesses need to be able to identify who their perfect partner is and they need a way of finding it each other, much like a dating agency," he added.

l Further information can be obtained from: National Business Angels Network, 40-42 Cannon Street, London EC4N 6JJ, Hotline 020 7329 4141, website: www.bestmatch.co.uk, e-mail: info@bestmatch.co.uk.