Manchester-based early-stage investor Praetura Investments has marked strong progress in deploying its first venture capital trust (VCT) fund, as it commits to backing early-stage high-growth businesses outside of London and the South East.
The £3m Praetura Growth VCT, which listed on the London Stock Exchange in April 2024, has already invested £1.4m into five companies, helping fuel much-needed support for UK start-ups.
Praetura puts the success in deploying the fund down to its ethos of primarily investing in companies outside the capital, with four in five (80%) backed by the fund from outside of London. The investor estimates that there is a £9bn shortfall in funding for businesses in the North compared to London, and it established Praetura Growth VCT to address this gap.
Among the first businesses backed by the fund is Manchester-based fintech AccessPay, which integrates banking services into one streamlined platform and works with clients including ITV, Admiral and Sainsbury’s. The VCT has also recently invested in Percayso, an insuretech start-up based in Nottingham that’s delivered a 400% increase in revenue over the last 24 months.
Sam McArthur, partner at Praetura Investments, said: “After 13 years of successful investing in EIS-qualifying companies, the launch of Praetura Growth VCT was driven by demand from financial advisers looking for another way to access alternative investments with Praetura. We’re pleased with the VCT’s deployment so far as it demonstrates the strength of our investment approach and our commitment to supporting scale-up businesses beyond London and the South East.
“Many regional businesses, particularly in the North, are overlooked by London-based investors and don’t have access to the same funding opportunities, despite showing exciting potential. We want to help give firms outside of the capital the platform they need to thrive, and give investors a chance to back businesses they may not otherwise be on their radar.”
