A NEW fund is being launched to raise £6m to invest in Oxfordshire's burgeoning hi-tech industries, writes Maggie Hartford.

Oxford Technology Venture Capital Trust said its first fund, launched in 1997, had been such a success that the company had decided to launch a second one.

Director Lucius Cary said the fund had supported 18 companies, most of which had been successful. The trusts invest in companies within a 60-mile radius of Oxford.

He said: "We have had one or two successes, with one likely to float on the Alternative Investment Market within the next two months.

"We have had one or two failures, and with most of them it is still too early to tell."

The companies include getmapping.com, run by Mr Cary's brother Tristram, and Oxford University spin-off company Synaptica, which aims to find drugs to treat Alzheimer's Disease. Venture Capital Trusts were created about four years ago when the Government announced tax breaks to encourage investment in new companies.

Mr Cary said: "Once you have got going and you have sales and profits it is not difficult to raise £5m to open a new factory.

"But if you are a scientist and you want £100,000 to investigate a potential cure for cancer, say, it is more difficult."

Someone investing £10,000 can get tax relief of £2,000, so the investment only costs £8,000. If the investment is held for five years it is sheltered against capital gains tax and any dividends are tax-free.

Mr Cary said: "Investing in just one of these companies would be very risky but when one is successful you multiply your money very many times, so investors get a spread of risks."

Story date: Thursday 24 February

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