A high-profile group of venture capital, biotechnology and IT trade bodies has called on Lord Mandelson to use a new £750m strategic investment fund to support the ailing venture capital industry.

Since the strategic investment fund was created in last month's Budget, with only vague plans on how it should be spent, the business secretary has been inundated with appeals from different quarters for access to the funds. But a letter sent by the group this week is the first proposal to be made public.