Investment backing still available for start-ups

The economic downturn has shifted the power to investors over entrepreneurs, but new business start-ups are continuing to attract support from investors, according to entrepreneur's social network site cmypitch.com.

Entrepreneurs are being forced to revise the amount of money that they seek, with figures of £25,000 to £50,000 the most common.

"Investors are being much more cautious about who they invest in, but they are still investing," said cmypitch chief executive Emmett Kilduff.

Investors are most interested in new businesses that are based around IT and internet services.