A leading venture capitalist has noted suppliers to the recruitment industry as a potential growth market.

Matt Taylor, partner at Foresight Venture Partners, has claimed that suppliers to the industry make attractive investment opportunities in the current business climate.

This is the latest indication that the recruitment sector is riding the upward curve in the business cycle.

Taylor has just invested £1.5m in the Theskillsmarket, producer of the iProfile online CV, and already has a stake in Bond International, the recruitment software firm.

“We’ve seen a pickup in order numbers across our portfolio – this is because of the better economy.

“It is well known that recruitment companies are the first to suffer when the economy drops, but pick up very quickly once it recovers.”

“Now recruitment companies are moving away from the grinding cost controls we saw during the harder times to products that increase consultants’ efficiency.”