Octopus Investment has launched a £125m fundraise for its Titan VCT
Titan VCT has £1.1 billion of funds under management and a diverse portfolio of more than 140 companies. It has backed some of the UK’s most successful entrepreneurs, having made early investments in Depop, Zoopla, and ManyPets, and has successfully exited 26 companies which have generated gains of over £370m.
The share offer is open until 19 October 2024 but may close earlier if fully subscribed. The minimum investment is £3,000 while the maximum investment qualifying for tax relief is £200,000.
Malcolm Ferguson, fund manager of Octopus Titan VCT, said: “The last 18 months have been particularly challenging for the venture capital asset class, driving founders to transition from a focus on growth to a more healthy focus on efficiency, and if possible, profitability. This transition is well on its way, with green shoots starting to emerge in many parts of the ecosystem.
“It is often said that challenging market environments are some of the most fruitful for new company creation, and as a result, we may be in one of the most exciting periods in over a decade for creating and therefore investing into the next generation of technology-enabled companies. Titan VCT is well placed to participate in this opportunity, and we are pleased to announce our new fundraise to allow us to continue to support those relentless founders hungry to leverage cutting edge technologies to solve some of the world’s biggest problems.”
Octopus Ventures, a part of Octopus Investments, manages the investment in Titan VCT, investing mainly in UK-based tech-enabled companies with a diversified portfolio across seven key areas: biotech, business-to-business software, climate, consumer, deep tech, fintech, and health.
Portfolio companies include:
- Pelago (formerly Quit Genius): a digital clinic for substance use management, helping conquer substance addiction through behavioural therapy treatments and approved medications.
- Unlikely AI: a deep tech company, aiming to make AI more accurate, trustworthy, explainable and safe.
- Minimum: a carbon accounting system that allows businesses to simply and effectively calculate, report on and reduce their carbon footprint.
- Vitesse: a treasury and payments provider for the insurance industry, helping to make the paying of claims quicker and more cost efficient.
Investors in VCTs are able to claim 30% upfront income tax relief, receive tax-free dividends and, when the time comes to sell the shares, not have to pay any capital gains tax if they’ve risen in value.
Jess Franks, head of Investment Products, Octopus Investments added: “The economic backdrop of 2023 is very different to what has been experienced over the past three years and as a result, exit opportunities have reduced with valuations at the lower end of the market. However, due to the diversity of the Titan VCT portfolio in terms of sector, stage and age, we believe the VCT is well positioned to benefit as market conditions improve.
“Moreover, approximately 80% of the portfolio currently has more than 12 months cash runway4available to them to support them through this more turbulent period, and there is still strong revenue growth within the companies we support. These are still very exciting companies with strong prospects.”
This year there will be a 2% discount for investors whose applications and funds are cleared by Thursday 21st December 2023. Additionally, the applications and funds that are received by the 20th of November 2023 will receive a 2p share dividend which will be paid on the 21st of December 2023.
