Britain look almost certain to miss the 2007 America's Cup in Valencia after Peter Harrison, the founder and chairman of the GBR Challenge, decided yesterday to "suspend current operations" because of a funding crisis.

"It is with great disappointment that we have to make this announcement", Peter Harrison said. "It is tragic that no corporate partner has yet come forward."

With the deadline for entries just one month away, the 25-strong core of designers, managers and boat-builders were given notice periods of one to three months yesterday, cutting the campaign back to barest of bones just in case 11th-hour funding is secured.

Time is fast running out for GBR to find a commercial backer to match the £20 million pledged by Harrison, who was adamant last night that he would not fund the challenge by himself.

In August, Charles Dunstone, of Carphone Warehouse fame, agreed to buy into GBR and assume some of that £20 million. Like Harrison, Dunstone was prepared to commit only if sponsorship was secured.

But the only sponsorship announcement GBR have been able to make came in September: lengthy talks with HSBC's corporate banking arm had failed.