Sovereign wealth funds will be invited to invest alongside the government in a £1bn ($1.6bn) vehicle to finance venture capital funds as part of broader “strategic partnerships” with the UK technology industry, according to Lord Drayson, science minister.

Fresh from visiting investors in the US and Europe, Lord Drayson has found “encouraging” feedback on the new fund of funds, announced by the government in June to aid the ailing venture capital industry. He is confident of turning the UK’s initial £150m contribution into a £1bn fund – the biggest of its kind in Europe.