The report was launched by the business organisation's new director general, Simon Walker, the former head of the British Venture Capital Association.

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By contrast, the British Venture Capital association (BVCA), which represents both venture capital firms and buyout firms, was first founded over 25 years ago and the European Venture Capital Association (EVCA) has been operating since 1983.

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John Mackie, chief executive of the British Venture Capital Association, the VCT industry body, told BBC News that it was up to VCT fund managers to decide what to do if they fail to raise enough money.

BBC: NEWS | Business | Worries over 'must have' investments