Nick Britton, Head of Intermediary Communications at the Association of Investment Companies (AIC) tells us why VCTs’ active support of the UK’s most ambitious businesses is important to investors.
Venture Capital Trusts (VCTs) play a key role in the UK economy. Their focus on ambitious early-stage companies with less than £15 million of assets gives investors the opportunity to invest in some of the UK’s most innovative businesses, which have the potential to offer healthy returns as well as stimulating growth across the country.
The sector has shown extraordinary resilience throughout the pandemic. Many VCTs invested in businesses directly engaged in the fight against COVID-19, from developing vaccines and testing kits to manufacturing antimicrobial curtains for hospitals.
VCTs have also played an important part in supporting companies through COVID-19, a time when many smaller businesses have struggled. In the first six months of 2020, for example, VCTs invested £695 million in small UK companies, including £219 million in follow-on investments.