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VCTs buck investment downturn, data shows

VCTs 2022
Image credit: Vector Tradition / Shutterstock

Investments by UK venture capital trusts (VCTs) rose by 8% in 2022, despite wider venture capital funding dropping by 23% during the same period.

Research by the Venture Capital Trust Association, which represents twelve of the largest venture capital trust managers in the UK, shows that VCTs provided £664m across 345 investments.

VCTs are investment companies listed on a stock exchange. They provide investments to unlisted companies and receive tax relief.

The data shows that VCTs exceeded £1bn in capital secured for the second consecutive year.

The data, which surveyed over 600 early-stage companies, is based only on firms that had previously received investment from VCTs.

Will Fraser-Allen, chair of the Venture Capital Trust Association, said: “UK PLC is increasingly in need of innovative young businesses to push the economy forwards and help to drive growth by investing in new technologies such as artificial intelligence.”...