Venture Capitalists are increasing investment in technology companies targeting the financial services sector, whilst overall technology investment is falling. FirstCapital research found that $258mn was invested in this sector in the first four months of this year, a 34% rise on the same period last year.

Chairing a packed seminar today on "Financial Services Technology - Rich Pickings for Venture Capitalists?" organised by FirstCapital, Jason Purcell, CEO, highlighted the tremendous investment opportunities in this area and UK success stories such as Sage, Mysis, royalblue group and Marlborough Sterling.

According to Jason Purcell and the speakers' panel - Coleen Kaiser, Executive Director of Lehman Brothers, John Hamer, Chairman of royalblue group, Fred Phillips, Director of Carlyle Europe Venture Partners and John Newton, founder of Documentum - the key drivers for the financial services sector include economic weakness, deregulation, regulatory pressures, globalisation, customer demands and margin pressure.

Financial services companies need to become more efficient and productive through investing in technology. This is creating demand for solutions from young technology companies and as John Newton comments "this is the best time ever to start a technology company".

Jason Purcell concludes: "London is the world's leading financial centre giving UK financial services technology companies a large market right on their doorstep. Now is the time for venture capitalists to invest in this sector to build the success stories of tomorrow."

Sources: VentureOne, VentureReporter, ipo.com, FirstCapital research.

For further information please contact: Paul Fisher, FirstCapital on 020 8563 1563 or paull@firstcapital.co.uk