Alex Davies, CEO of Wealth Club, outlines why the Octopus Titan VCT raise, launching today, offers investors exposure to fast-growing tech opportunities with huge growth potential
“Packed with fast-growing technology businesses, Octopus Titan is very much the VCT of the moment. With a string of high profile exits from the likes of Zoopla, graze.com and Magic Pony and two unicorns to its name, Titan has shown that it not only talks the talk but walks the walk too. It offers investors a diversified portfolio of already successful companies as well as a very real chance of backing the next big thing.
“The VCT delivered 121.4% over the last 10 years, making it one of the top-performing VCTs.
“Despite the Covid-19 crisis, 26 of the Octopus Titan companies are forecast to more than double their revenues in 2020 and 44 to deliver revenue growth of over 25%. This is seriously impressive given only 21 of the FTSE 350 constituents grew their revenue by more than 25% in 2019 before the current crisis unfolded.”
“With its exclusive focus on entrepreneurial technology companies, the VCT gives investors exposure to one of the fastest-growing sectors, and one which is scarily underrepresented in the main stock market (technology stocks only represent 1.10% of the FTSE All Share). It’s no secret that the technology sector has really prospered in the last few months and investors could likely see strong returns from the types of businesses that Titan has to its name.”
Commenting on VCTs in general Alex says: “Last year, despite the end of the tax year coinciding with the beginning of the Covid crisis, the VCT market remained strong with nearly £620million invested.
With most investors expecting imminent tax rises and rumoured further changes to pensions, we expect appetite from investors to continue. By their nature VCTs are limited in their capacity and the popular ones sell out quickly. Therefore if you spot a VCT you like you should act now rather than delaying until the end of the tax year.”