Nothing ventured at Brainspark

VCs getting twitchy too

VCs getting twitchy too

Internet incubator Brainspark hasn't been in nurturing mood of late - in fact, it hasn't made any new investments since Christmas. It has also closed two companies in that time, blaming "terrible" sentiment in the sector. Stewart Dodd, chief executive of the company, told the FT: "It is not getting any worse, but the follow-on funding market has not come back at all. There is an acute crisis of confidence in the venture capital industry about itself. It is not just about the investments they have made, but whether they will stay in business themselves." The companies being shut down are broadband consulting firm EC1 Media, and Gasworld, a gas trading platform. A similar online hub for the rail industry, Globe-Rail, has been made 'dormant, while Petspark and Leisurehub have been sold for a nominal sum. Brainspark has reduced its burn rate to around £200,000 a month, and now employs just 14 people.