Entrepreneurs fighting for more government support for start-up companies will find plenty of ammunition in the latest venture capital investment figures. VC investment in the US fell by half in the first quarter, according to Dow Jones VentureSource – to its lowest level in 11 years. Investment in the UK is also down sharply. Series B rounds, injections of $10m-$20m into more established companies, have been particularly hard hit as financiers struggle to raise new funds from institutional investors. Start-ups risk withering on the vine.

Governments are under pressure to help bridge the funding gap. The UK is mulling a government-backed fund of funds that would give cash to existing VC groups. There is a 50-50 chance some kind of start-up support scheme will be included in the chancellor’s Budget this week. Entrepreneurs in the US have proposed similar schemes.