Octopus Investments, the specialist tax efficient investor, announced that it raised a total of £61 million into its venture capital trusts (VCTs) during the month of November, equivalent to more than £2 million each day, in a sign that demand for VCTs remains resilient despite broader economic uncertainty.
This came as it closed fundraising for its Octopus AIM VCTs after they raised £17 million in November and reached the overallotment target of £31 million.
Octopus also experienced strong inflows into the UK’s largest VCT, Octopus Titan, which raised £38 million last month and sees it almost half way to its initial £80 million fundraising target, just 5 weeks after opening.
Paul Latham, Managing Director of Octopus Investments, said:
“VCTs act as a critical source of patient capital, which is needed now more than ever as smaller companies navigate the shifting environment that the pandemic has brought. Strong inflows into VCTs will be welcome news for the UK’s early stage technology companies, many of which are in a great position to scale but still need funding to realise their full potential.
“This opportunity to back some of the most promising British technology businesses has clearly resonated with investors seeking growth, while also looking for established managers with a proven track record.
“Another factor which explains why inflows have held up is that VCTs are now more ingrained in the financial planning process. In years gone by, we often saw a big rush towards the end of the tax-year, but increasingly investors and financial advisers have become more familiar with VCT investing and are also doing their tax planning much earlier. However, this increases the risk of the most popular VCTs reaching capacity sooner than you might expect, as we have seen already with our AIM VCTs.”
Many investors have taken advantage of ‘early bird’ discounts available until 15th December which offer reduced fees on the VCTs.
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. Past performance is not a reliable indicator of future results. 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 and the Key Information Document, 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: December 2020.