OXFORD’S technology firms have received a staggering £1.4bn funding in the past 12 months.

And at more than five times the previous year’s £250m, it is described by one investor as a “once-in-a-decade phenomenon”.

The capital, raised by investment management companies, has backed start-ups and high-growth technology companies in what is known as the Oxford tech cluster, made up of entrepreneurs, high-tech firms and researchers in the county’s science parks, labs and both universities.

David Mott of investment organisation Oxford Capital said: “This is a once-in-a-decade phenomenon that’s happening in Oxford.

“For the first time there is a mass of capital which talented entrepreneurs and fast-growing businesses can dip into, which throws up the challenge of whether we can build global-quality businesses here in Oxfordshire and there are very positive signs of success so far.”

A string of start-ups and small businesses have shown meteoric growth, often through being acquired or floated on the London or New York stock exchanges.

Most of the cash has been used to back spin-outs from research institutions.

Although the Oxford tech cluster is best known for life sciences, other sectors which have attracted big money include energy, software and advanced engineering.

Examples include Oxford Science Park biotech firm Circassia which has developed a cure for allergies to cats, dust mites and hayfever plus Milton Park’s Oxford Immunotec, which has come up with a breakthrough test for TB.

Another high-profile success story is St Ebbe’s-based Natural Motion which was snapped up by US software giant Zynga for £300m last year.

Other investors behind the £1.4bn funding include Oxford Sciences Innovations, IP Group, Woodford Investment Management, Parkwalk, Mercia and OSEM.

Mr Mott said much of the funding is coming from international sources, including the USA, Europe and Asia.

And unlike the rest of the UK and London, where 80 per cent of funding goes to internet firms of some type, one of Oxford’s biggest attractions for investors is its diversity.

He added: “The Oxford cluster is categorised by deep science, including new forms of energy and materials and that has attracted a lot of new money in the past year.

“Now the money is here we need to have more ideas, more talent and great execution to turn this into a legacy for the next 10 years and beyond.”

Oxford’s businesses had a chance to impress investors at business networking event Venturefest this week, which included a discussion on the £1.4bn pumped into the county’s businesses.

Venturefest chief executive Lynn Shepherd said: “There’s a real energy and momentum building in Oxfordshire and particularly Oxford.

“At first sight, this looks like it is only relevant to tech but the investment all contributes to the growth in the county.

“It all goes into the pot and means we have more money to improve our roads, build homes and schools.

“Everybody benefits in some way, including through more jobs and as we attract more businesses and investors into the area, it brings more wealth.”