Fund manager and investor MMC Ventures has won a competitive tender to launch the MMC London Fund, which will see £22 million ploughed into London-based start-ups.

The London Fund will co-invest alongside other venture capital firms, business angels and other MMC funds – and is partly financed by a grant from the European Regional Development Fund. It will be managed by Boris Johnson, the Mayor of London, and SME Wholesale Finance.

MMC Ventures is an active venture capital investor in the £500,000 to £2 million market, which was founded in 2000 and is largely focused on the technology-enabled sectors.

The burgeoning technology start-up scene in east London will no doubt benefit from the cash, as the government has pushed the sector in recent months and years, with early funding recently having been highlighted as a significant barrier for small companies.

Ministers hope that if technology and digital companies flourish in the area, it will not only rival the success of Silicon Valley in California, but provide a high growth sector for the future economy.

"London's small to medium companies are a vital component of this city's economy, supporting significant numbers of jobs. It is a top priority for me that these entrepreneurial enterprises receive practical support to thrive and grow, not least as many have the potential to become major employers in the future,” said The Mayor, Boris Johnson.

“This innovative equity fund is using public and private money in order to offer much needed financing when more traditional routes are not available."

MMC has already completed five investments from the new Fund, one of which was in Masabi – a London based start-up that specialises in mobile ticketing.

In other recent Tech City news, a number of firms in London’s east end signed a petition against government plans to make changes to development rights for commercial property, which would allow empty office spaces to be quickly converted into residential apartments.