The UK Innovation Investment Fund will operate on a fund of funds structure which means it will not invest directly in companies, but rather invest in a small number of specialist technology funds that have the expertise and track record to invest directly in companies. These underlying funds will focus on investing in growing small businesses, start-ups and spin-outs, in strategically important UK sectors including clean technology, life sciences, advanced manufacturing and ICT. Investments in individual technology funds will be a commercial decision for the fund of funds manager based on the quality of the investment opportunity and the fund’s investment strategy. There is no restriction on the spread of spending across technology sectors, with the exception of £25 million minimum investment in each of low carbon and life sciences. We anticipate that the actual level of investment in low carbon will exceed £25 million.