Venture capitalists are more willing to invest in technology than they have been for more than three years. A number of stock market flotations this year, including the IPOs of Wolfson Microelectronics and Cambridge Silicon Radio, are helping to breathe life into the sector.

Michael Elias, managing director of Kennet and chairman of the European Venture Capital Association's high-tech committee, said: "I feel pretty bullish about innovation. People are fundraising again and we are definitely seeing more capital being deployed into tech companies."