More than 100 leading entrepreneurs, investors, advisers and policy makers have supported a call from the VCTA to modernise and strengthen the Venture Capital Trust (VCT) and Enterprise Investment Scheme (EIS) frameworks by raising company investment limits.

Endorsing an open letter to the Chancellor and Business Secretary, the business leaders have urged HM Treasury to:

• Raise the lifetime company investment limit to at least £30 million (£40 million for knowledge-intensive companies)

• Raise the annual company investment limit to at least £15 million (£25 million for knowledge-intensive companies)

• Commit to reviewing these limits at least every three years to maintain relevance and effectiveness.

Supported by a coalition of leading industry bodies (including the AIC, UK Business Angels Association and The Entrepreneurs Network) alongside hundreds of VCT-backed businesses nationwide, the letter – which is part of the broader ‘Growth Beyond Limits’ campaign led by the VCTA – urges policy action in the forthcoming Autumn Budget.

It comes at a time when inflation has significantly eroded the real-term investing power of VCTs and EIS, threatening their ability to support scale-up companies in capital-intensive sectors such as life sciences, deep tech, and clean energy. Therefore, action is needed to prevent stagnation of one of our most successful funding schemes.

Chris Lewis, Chair of the VCTA, commented: “These reforms are essential to ensure the schemes remain fit-for-purpose in today’s macroeconomic climate. Crucially, they will unlock capital for the UK’s most promising businesses, in the sectors and regions that will define the country’s economic future. By updating investment limits, we can empower the next generation of entrepreneurs to thrive, ensure that the benefits of their success are felt here at home, and keep Britain at the forefront of global innovation.”

Anastasia Leng, founder and CEO of VCT-backed CreativeX, commented: “Since raising our first VCT funding from Beringea in 2018, we’ve grown from 18 people to more than 100, and invested in research and development that has transformed our business. Inflation means that these investments in growth will inevitably require greater amounts over time – VCT limits must keep pace and ensure that the next generation of entrepreneurs can build international success stories like ours.”

Charles Hambro, founder and CEO of VCT-backed GEEIQ, commented: “Updating VCT and EIS limits isn’t a nice-to-have, it’s overdue. UK companies competing globally need financing tools that match today’s costs and growth ambitions.”

The open letter (including full signatory list) can be viewed here: https://www.growthbeyondlimits.uk/