Chancellor Gordon Brown's Budget earlier this year knocked the shine off gleaming tax breaks for investors in venture capital trusts. So is the party over for such adventurous spirits? Take a look at the performance graph for shares in the four Oxford Technology Venture Capital Trusts, which between them have invested more than £23m in early stage and start-up companies, and the answer would seem to be a resounding yes.

But that early pioneer of these exciting investment vehicles, Lucius Cary, and his team at the Magdalen Centre on the Oxford Science Park, are quietly confident that there is mileage in them yet not that he has anything to gain by talking them up, as he is not fund raising at the moment.

His Oxford Technology Venture Capital Trust 4 (VCT4) is now the only such trust still providing money for early-stage and start-up companies.

Last year, £725m was invested in venture capital trusts but only £3.2m went into VCT4. And most of that will find its way into ventures within 60 miles of Oxford, where Mr Cary and his team can keep a sharp eye on them.

Mr Cary said: "There are risks, of course, disaster can always strike, but some of the companies we have invested in recently are doing well."

He added: "I am hoping we shall have the best returns of all VCTs but I can't prove it yet."

Certainly, the world of venture capital trusts may seem like a minefield for some, and the cuts in tax incentives for investors have highlighted the potential risks over the potential rewards.

In April, Mr Brown cut the tax break for investors in venture capital trusts from 40 per cent to 30 per cent and made even that only available for investors in small companies.

Mr Cary, who has been a merchant adventurer for 30 years, said: "On the face of it the small companies only' provision should have been good news for us, since we only invest in early stage and start-ups.

"The trouble is that many companies that are already up and making a profit still qualify, and investors are cautious people: so those companies often attract the funds while still qualifying for the tax relief."

He added that he would probably not be launching a VCT5. Now the Government is promoting its Enterprise Capital Funds to replace traditional business angels and Mr Cary is looking into the possibility of setting one up, although he has reservations.

"Enterprise Capital Funds have a lot of the characteristics of grants. And I did not come into this business for grants," he said.

Evidently a strong advocate of the principle of enlightened self-interest, he did come into the business of marrying ideas and capital together with the simple ambition of seeing new ventures prosper and soar away for the benefit of society at large. The tricky part of any business angel's life, he maintains, is to pick winners and then nurture them a process involving tact and kindness when dealing with the sometimes sensitive natures of inventors and entrepreneurs.

Originally, Mr Cary set up Venture Capital Report, a publication listing business ideas, which he sent out to subscribers.

He got into that business some 30 years ago after discovering just how hit and miss the business of raising money could be.

Free lunch After leaving Harvard Business School, he tried to raise money for his own catering business. He discovered there were sharks out there who made a living by taking would-be entrepreneurs for a ride.

He said: "I remember one gentleman in particular who seemed to make a habit of getting free lunches off hopeful entrepreneurs including one off me without any intention of investing."

Venture Capital Report then expanded into the business of bringing would-be entrepreneurs into a room full of potential investors and allowing them to make their pitch'.

That scenario, reminiscent of TV show Dragons' Den, still occurs throughout the year; but of course these days Mr Cary is also involved in steering money into good ideas through the four venture capital trusts in which he is involved.

After investing in a potential winner, Oxford Venture Capital Trust will help their chosen entrepreneurs pitch' business angels for further funds.

With this objective in mind, Mr Cary introduced Oxford company Diamond Hard Surfaces to potential investors at this month's Venturefest, held at the Said Business School.

The fledgling company was seeking a £300,000 investment for a revolutionary new process to create unusually thick diamond-like carbon coatings, ideally suited for use in the oil, gas, packaging, Formula 1, and pharmaceutical industries.

As for the companies listed in Oxford Venture Capital Trust 4's latest newsletter as having received investment, they range from a new method of detecting early-stage breast cancer, to a company that has developed a system to enable companies to trace the origins of products back to their source.

This would be particularly useful for supply chains handling premium-priced products with some intangible quality such as organic' cotton, or fairtrade' coffee.

Mr Cary is now Mr Expert when it comes to assessing business ideas. Despite the change in the tax landscape, he said: "It is good to report that we do have several companies which are making excellent progress and which have the potential to be stars, and so to return large gains to investors.

"But it often takes time from intitial investment to final exit. Watch this space."

n Contact: Oxford Technology Venture Capital Trusts 01865 784466; www.oxfordtechnology.com