With the AIC announcing the annual VCT figure of £918m, Will Fraser-Allen, Managing Partner at AlbionVC (largest VCT raise this year – £90m) and Board member of the AIC, has shared his thoughts.
The latest AIC annual VCT fundraising figure of £918m reveals a VCT market that is broadly flat on last year.
While it’s encouraging to see the industry’s resilience given the challenging geopolitical and macro environment, it’s disappointing that there wasn’t more of an uplift in fundraising in what was the final opportunity for 30% tax relief.
It is a worrying signal that the fundraising market will be significantly smaller in the year ahead.
We’re delighted to have higher limits this coming year, but by cutting the very relief that drives capital into those businesses, the Treasury risks pulling the rug out from under the great momentum VCTs have had funding the UK’s ‘growth economy.’
Albion’s £90m oversubscribed raise proves that investor appetite for high-quality, thematic investment remains high. Our focus now is on deployment, putting this capital to work in the next generation of UK founders in sectors where the UK can lead innovation such as deeptech, healthtech and B2B software.
We remain encouraged by our dialogue with the Treasury and stay optimistic that the importance of restoring the 30% upfront relief will be recognised to ensure the UK remains competitive.
