Venture capital trusts raised £895 million in the 2024/25 tax year, the third highest figure on record.
Figures from the Association of Investment Companies showed the amount raised was only slightly behind the record £1.13 billion raised in 2021/22 and £1.08 billion raised in 2022/23, despite the difficult economic backdrop.
Fundraising over the last five tax years, from 2020/21 to 2024/25, totalled £4.67 billion, according to the AIC.
Richard Stone, chief executive of the Association of Investment Companies, said the figures were “good news” for the UK’s innovative young companies.
Stone said: “VCTs offer attractive tax incentives to investors, while their investee companies create economic and social benefits for local communities across the UK. Some may even grow to become household names.
“This year’s strong fundraising shows that VCTs remain a favoured investment for those who want to back growing UK companies while reducing their tax bill. Growth is the number one objective for the Government and VCTs provide vital capital to the businesses that will fuel that growth.”
Chris Lewis, chair of the VCT Association, added: “VCTs play an integral role in the growth and success of the UK’s start-up and scale-up economies. More than ever, we see entrepreneurs, investors, and policy makers aligned on the need to support the high-growth, high-potential companies backed by VCTs.
“With another year of funds successfully raised by a diverse set of VCT managers, we have a fantastic opportunity to accelerate investment throughout the country and deliver on the UK’s economic ambitions.”
Main image: mohammed-kara-0bWnQEsdo3s-unsplash
