Octopus Investments, part of Octopus Group and the largest provider of venture capital trusts (VCTs) in the UK1, today announced it has opened a new £125 million fundraise for Octopus Titan VCT (Titan VCT), providing investors with access to promising companies that have the potential to become household names.
Titan VCT is the largest VCT in the market2, with £1.1 billion of funds under management3 and a diverse portfolio of more than 140 companies. It has a proud history of backing some of the UK’s most successful entrepreneurs, having made early investments in Depop, Zoopla, and ManyPets, and has successfully exited 26 companies which have generated gains of over £370m.
Malcolm Ferguson, Fund Manager of Octopus Titan VCT, said:
“The last 18 months have been particularly challenging for the venture capital asset class, driving founders to transition from a focus on growth to a more healthy focus on efficiency, and if possible, profitability. This transition is well on its way, with green shoots starting to emerge in many parts of the ecosystem.
“It is often said that challenging market environments are some of the most fruitful for new company creation, and as a result, we may be in one of the most exciting periods in over a decade for creating and therefore investing into the next generation of technology-enabled companies. Titan VCT is well placed to participate in this opportunity, and we are pleased to announce our new fundraise to allow us to continue to support those relentless founders hungry to leverage cutting edge technologies to solve some of the world’s biggest problems.”
Octopus Ventures, a part of Octopus Investments, manages the investment in Titan VCT, investing mainly in UK-based tech-enabled companies. The team is one of the largest venture capital teams in Europe, and since the launch of Titan VCT, it has grown from five to over 90 people. Titan VCT has a diversified portfolio across seven key areas: biotech, business-to-business software, climate, consumer, deep tech, fintech, and health.
Notable portfolio companies include:
- Pelago (formerly Quit Genius): a digital clinic for substance use management, helping conquer substance addiction through behavioural therapy treatments and approved medications.
- Unlikely AI: a deep tech company, aiming to make AI more accurate, trustworthy, explainable and safe.
- Minimum: a carbon accounting system that allows businesses to simply and effectively calculate, report on and reduce their carbon footprint.
- Vitesse: a treasury and payments provider for the insurance industry, helping to make the paying of claims quicker and more cost efficient.
Titan VCT offers investors comfortable with the high risks of smaller company investing, attractive tax incentives. These exist to incentivise investment into growing UK businesses, with investors able to claim 30% upfront income tax relief, receive tax-free dividends and, when the time comes to sell the shares, not have to pay any capital gains tax if they’ve risen in value.
Jess Franks, Head of Investment Products, Octopus Investments commented:
“The economic backdrop of 2023 is very different to what has been experienced over the past three years and as a result, exit opportunities have reduced with valuations at the lower end of the market. However, due to the diversity of the Titan VCT portfolio in terms of sector, stage and age, we believe the VCT is well positioned to benefit as market conditions improve.
“Moreover, approximately 80% of the portfolio currently has more than 12 months cash runway4 available to them to support them through this more turbulent period, and there is still strong revenue growth within the companies we support. These are still very exciting companies with strong prospects.”
This year there will be a 2% discount for investors whose applications and funds are cleared by Thursday 21st December 2023. Additionally, the applications and funds that are received by the 20th of November 2023 will receive a 2p share dividend which will be paid on the 21st of December 2023.
The share offer is open until 19th October 2024 but may close earlier if fully subscribed. The minimum investment is £3,000 while the maximum investment qualifying for tax relief is £200,000.
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Notes to Editor
- By funds under management, The Association of Investment Companies, September 2023.
- By funds under management, The Association of Investment Companies, September 2023.
- Octopus Investments, 30 June 2023
- A company’s cash runway is the number of months until cash runs out.
Performance
Past performance is not a reliable indicator of future results and may not be repeated.
Five discrete years to 30 June 2023
| | 2019 | 2020 | 2021 | 2022 | 2023 |
| Annual total return | 3.3% | 2.3% | 32.8% | -10.2% | -19.8% |
| Annual dividend yield | 5.3% | 5.4% | 5.6% | 9.7% | 5.5% |
| NAV | 92.4p | 89.5p | 113.9p | 91.3p | 68.2p |
| Total value | 166.4p | 168.5p | 197.9p | 186.3p | 168.2p |
The performance information above shows the total return of Octopus Titan VCT for the last five years to 30 June, the VCT’s accounting period. The annual total return for Octopus Titan VCT is calculated from the movement in net asset value (NAV) over the year to 30 June, with any dividends paid over that year then added back. The starting NAV figure is 94.3p from 30 June 2018. The revised figure is divided by the NAV at the start of that period to get the annual total return. Performance shown is net of all fees and costs. The annual dividend yield is calculated by dividing the dividends paid per annum by the NAV at the start of the period. Please note, the NAV per share may be higher than the share price, which is the price you may get for the shares on the secondary market. Total value is calculated as the sum of the NAV per share and cumulative dividends per share for the last five years to 30 June.
For journalists in their professional capacity only.
The value of an investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest. Tax treatment depends on individual circumstances and may change in the future. Tax reliefs depend on the VCT maintaining its VCT-qualifying status. VCT shares could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. They may also be harder to sell. Personal opinions may change and should not be seen as advice or a recommendation. We do not offer investment or tax advice. We recommend investors seek professional advice before deciding to invest. Investors should only subscribe for shares based on information in the prospectus and the Key Information Document, which can be obtained from investments-old.production.octps.co. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London, EC1N 2HT. Registered in England and Wales No. 03942880. We record telephone calls. Issued: October 2023.