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Octopus Titan closes largest ever VCT fundraise

26 Mar 2018

Octopus Titan VCT previously broke the UK record for a venture capital trust (VCT) fundraising round by securing £120 million in the last four months of 2017. The fund chose to exercise an £80 million over-allotment option to take the fundraising total to £200 million, a total that has now been reached in advance of its 4 September 2018 deadline – owing to high demand from investors.

Set up in 2007, Titan has invested in a range of successful early-stage companies including SwiftKey, a mobile phone app acquired by Microsoft in 2016, Magic Pony, sold to Twitter in 2016, and Zoopla Property Group (now known as ZPG), the first VCT-backed company to reach a £1 billion valuation.

Titan’s success reflects a positive year for VCTs, with demand reaching record highs, overtaking last year’s total VCT fundraise a month in advance of tax year end. In total, more than £6381 million has been invested into VCTs with just a week to go before tax year end.

Jo Oliver, fund manager of Octopus Titan VCT, says:

“This year the demand for VCTs has been unprecedented, with Titan leading the market with the largest ever fundraise. Investors are increasingly excited by the opportunity to gain access to, and support, the UK’s up and coming businesses. There is plenty of opportunity on the back of the UK’s thriving entrepreneurial ecosystem and we remain one of the most active investors in early-stage companies in Europe.

“There is a fantastic attitude in the UK towards entrepreneurial businesses, and the Government’s announcement of the Patient Capital Review last November was a further commitment to making the UK become the best place to start and scale a business in Europe.”

Paul Latham, Managing Director of Octopus Investments, the UK’s largest provider of VCTs2, comments on the demand spike and the outlook for VCTs:

“It’s a record breaking year for VCTs as more investors look to access the benefits of investing in the growth potential of smaller companies and the tax reliefs that VCTs offer. The ever-growing demand for VCTs is not surprising when you consider the recent changes to pensions legislation, restrictions on the lifetime allowance and to the buy-to- let market. As these areas become squeezed, people are increasingly looking to VCTs to provide them with a credible way of investing in a tax efficient manner.”

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 1Tax Efficient Review

2The Association of Investment Companies (The AIC)

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. This advertisement is not a prospectus. Investors should only subscribe for shares based on information in the prospectus, which can be obtained from octopusinvestments.com. 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: March 2018.