Octopus Investments has opened a new £5 million fundraise for the Octopus Future Generations Venture Capital Trust.
The investments made through the VCT are aligned with one of three core investment themes that run through the Octopus business; building a sustainable planet; empowering people to create a fairer and more equitable society; or revitalising healthcare.
Launched in January 2022, the VCT is now in its fourth year and has a portfolio of more than 35 companies at a range of stages in their lifecycle. While the companies are all still early stage, new investors will gain exposure to a maturing ventures portfolio.
In addition, there is the potential for profitable exits, according to the investment manager. In a typical venture capital cycle, exits can take four to seven years or more to secure. Investing in a VCT before many of these exits offers the potential to benefit from net asset value growth and potential tax-free dividends payable during this period, as well as special dividends if portfolio companies are sold for significant gains.
Simon King, lead fund manager of Octopus Future Generations VCT, said: “We believe the companies that understand what it means to tackle some of society’s biggest challenges have the potential to deliver some of the best returns to investors over the coming decades. These challenges represent huge addressable markets and the demand for their solutions is growing and urgent. On top of that, people increasingly want to work for businesses that make a positive difference in the world; as a result, these companies are attracting the best talent.”
King added: “We always look forward to seeing the positive, meaningful change our investments can have on the UK economy and more broadly, on society and the planet. But we know that change won’t happen overnight. It’s one of the reasons why we are attractive to entrepreneurs looking for a partner who can support their long-term growth and ambitions.”
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