Greece’s government-backed venture fund of funds Taneo is due to start investing again after nearly two years of inactivity.

Taneo was created as a result of a law passed by the Greek government in 2001, and set up with €150m under management in 2003.

It backed four Greek venture funds, but activity stalled at the beginning of 2006 when its original investment period came to an end.

The fund’s shareholders and its trustee Deutsche Bank later decided to extend the investment period.

Investment was due to restart on 5 November, but is still awaiting approval from the Greek minister of economy and finance.

According to Taneo investment manager Antigoni Lymperpoulou, the firm already has a significant investment pipeline of seven new venture capital funds and a proposal for the reactivation of an existing fund.

In addition, Lymperpoulou said two major international banks, two top domestic banks, three investment groups and several wealthy individuals has expressed their intention to work with Taneo in establishing the next set of venture capital funds.

Taneo has backed four funds investing in seed, early-stage and expansion capital deals.

The funds it has backed to date are the €24m Capital Connect Venture Partners fund, Pancreta Partners (€6m), the Zaitech Fund (€30m) and the IBG Hellenic Fund (€17m).

No venture capital funds were raised in Greece during 2006.