Our industry
What is a VCT?
Investments in VCTs carry tax relief to encourage investors to support smaller, higher risk companies. By pooling investments with those of others, VCTs allow investors to spread their risk over a number of small companies.
Over 1,000 businesses currently benefit from VCT funding
VCTs invest throughout the UK, helping to balance the nation’s economy, supporting businesses that are growing rapidly through the development of their management teams and operational functions.
CASE STUDY
Quorum Cyber
What's the context?
With an ambitious entrepreneurial culture, world leading universities, and a thriving digital economy, the UK has a well-earned reputation as a great place to start a business.
However, many start-ups face a funding gap when scaling up. Having raised from early-stage investors, entrepreneurs often struggle to access the patient capital and experienced partners to drive their next phase of growth.
Over a third of scale-ups surveyed identify insufficient access to capital as the biggest barrier to growth
VCTs are a vital solution to this growth funding gap, providing a unique combination of long-term funding, experienced investment professionals, and a nationwide network to unlock the vast potential of scaling businesses.
How do VCTs support the economy?
VCTs are UK listed investment companies. They drive innovation and growth through long-term investing, a nationwide network, and decades of investment experience.
They are uniquely positioned to provide the long-term and hands on support required to overcome the growth funding gap present among start-ups and scale-ups.
VCT-backed companies employ over 106,000 people, earning higher-than-average salaries.
Together, they foster an environment which encourages investment into innovative businesses, driving economic growth, job creation, and global competitiveness for UK PLC.
CASE STUDY
DASH Water
What does a VCTA portfolio company look like?
A typical VCTA portfolio company at the point of investment:
35 employees
£2.6m in revenues (to Dec 2023)
£2m initial investment
VCTA member firms were Board Members or Board Observes on over 95% of their unquoted companies, providing commercial and professional advice, intensive support and guidance over the long term as these firms develop new products, enter new markets and create new jobs.
