AIC: 2024/2025 VCT fundraising is third highest on record

The Association of Investment Companies (AIC) has announced that venture capital trusts (VCTs) raised £895 million in the 2024/25 tax year to invest in early-stage innovative UK companies.

This is the third highest fundraising by VCTs in a tax year. The fundraising record was set in 2021/22 when VCTs raised £1.13 billion, followed by the 2022/23 tax year in which £1.08 billion was raised.

Fundraising over the last five tax years (from 2020/21 to 2024/25) totals £4.67 billion. Please see below for a table of VCT fundraising since 2010/11.

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said:

“Despite a difficult economic backdrop, VCTs had their third best year for fundraising. This is good news for the UK’s innovative young companies because VCTs provide finance and advice to these businesses, helping them scale up and succeed. VCTs have raised over £4.6 billion over the last five years to help get hundreds of ambitious businesses off the ground.

“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, said:

“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.”

VCT fundraising by tax year