Tuesday’s story about 3i created shockwaves in the venture capital world and yet it had a familiar ring: private equity firm abandons start-up investment. 3i, like a host of other players before it, is relinquishing its interest in early-stage companies in favour of the promise of higher returns upstream.

The exodus by 3i marks another blow not just to the UK entrepreneur but to the economy. The recent report by Lord Sainsbury, Race to the Top, refers to the need to make UK companies the best in the world, but many will now find it hard to get out of the starting blocks. Evidence suggests a correlation between fast-growing new companies and employment growth. New companies are an important driver of productivity, particularly as they can force established firms to improve. They also find it easier to allow new ideas and ways of working to be tested, some of which can tackle big social issues.