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Octopus says smaller companies vital to economic recovery as it opens VCT fundraiser

24 August 2020

Octopus Investments has launched a £20 million joint fundraise for two of its Alternative Investment Market VCTs, believing smaller companies will be “vital” to the UK’s economic recovery following Covid-19, with their size making them more adaptable than their larger peers. 

The fundraise is for the firm’s Octopus AIM VCT and its Octopus AIM VCT 2, with a minimum investment of £5,000. Both VCTs target a 5% tax free dividend yield annually.

The portfolios are made up of around 80 companies across a range of sectors, including building materials, pharmaceuticals, software development and battery technology, Octopus said.

Richard Power, head of smaller companies, Octopus Investments, said: “This year AIM marked 25 years since its launch, during which time it has cemented its position as the ‘go to’ market for ambitious growth companies, providing more than £115 billion in capital. It has helped the UK create an increasing number of established, well-known, and often international brands, it really is a brilliant UK success story.”

Paul Latham, managing director, Octopus Investments, added: “UK smaller companies have proven themselves time and time again to be a key driver of UK economic growth and job creation, and their success will be vital to the UK’s economic recovery following COVID-19. They also tend to be much more adaptable than their larger peers, setting them in good stead to react quickly and take advantage of new opportunities as they arise.

As witnessed in recent months, even during periods of economic stress, AIM continues to prove a great and much needed platform for small companies to access crucial growth capital. This demand is likely to continue, with smaller businesses looking for equity financing as the Government begins to withdraw its financial support for businesses during the COVID-19 outbreak.”

The new share offer for both VCTs is open until 5 April for the 2020/2021 tax year and 20 August 2021 for the 2021/2022 tax year.

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