Jonathan Rowland’s Jellybook said the losses were largely down to costs associated with its incorporation in March and its listing on AIM in June.
In a gloomy reflection of the economic climate, the fund, which is looking to invest in a European social network, failed to identify a suitable acquisition target.
Rowland blamed the “difficult and volatile economic climate” and said he is continuing to “evaluate potential investments”.
The fund raised £11m in the stock market float, hoping to take advantage of the expanding tech bubble that has seen valuation of dotcom giants rocket.
However, the market has cooled in recent months, with Zynga, Groupon and Facebook all delaying their upcoming multi-billion dollar IPOs.
Meanwhile a new study suggests the UK could face a technology skills shortage, with less than three per cent of graduates considering a career in the sector, compared to 10 per cent in finance.