Second highest VCT fundraising to boost ambitious UK companies
VCTs raise £1.08 billion in 2022/23 tax year.
Today the Association of Investment Companies (AIC) published the amount of money raised by venture capital trusts (VCTs) in the 2022/23 tax year. VCT fundraising has passed the £1 billion milestone for the second time, amounting to £1.08 billion to be invested in young and ambitious UK companies.
This is the second highest fundraising ever by VCTs and represents a 5% decrease compared with the 2021/22 tax year (£1.13 billion) which was a record year for fundraising.
During the 2022 calendar year, VCTs invested £700 million in new and follow-on investments in small private companies and Alternative Investment Market (AIM) companies in the UK. The lion’s share, £652 million (93%), was invested in private companies with £48 million invested in AIM-quoted companies.
In 2021 VCTs invested £672 million in new and follow-on investments. Of this, £539 million (80%) was invested in private companies and £133 million was invested in AIM companies.
“This VCT fundraising is close to record levels which will be highly beneficial to the UK’s innovative small businesses in a challenging year. Last year VCTs invested £700 million in small private companies and AIM companies. This much-needed support to the UK’s fast-growing companies helps deliver vital economic, social and environmental advantages to the country. It’s crucial VCTs can continue to fund young businesses which create jobs, develop skills and knowledge, increase exports and raise the tax take across many sectors including healthcare and technology.
“During a tough year for investors, demand for VCTs remains near record levels demonstrating the numerous benefits they bring. VCTs have been around for over 25 years and are a trusted tax-efficient scheme. They have strong long-term performance, with the average VCT returning 108% over ten years. Following the pandemic, private investors are particularly interested in supporting the UK’s entrepreneurs and their innovative high-growth companies.”
Richard Stone, Chief Executive of the Association of Investment Companies (AIC)
Historic VCT fundraising excluding enhanced share buy-backs
|
Tax year |
Fundraising |
|---|---|
|
2022/23 |
1,078 |
|
2021/22 |
1,134 |
|
2020/21 |
685 |
|
2019/20 |
619 |
|
2018/19 |
731 |
|
2017/18 |
728 |
|
2016/17 |
542 |
|
2015/16 |
457 |
|
2014/15 |
429 |
|
2013/14 |
420 |
|
2012/13 |
269 |
|
2011/12 |
267 |
|
2010/11 |
354 |
|
2009/10 |
338 |
|
2008/09 |
154 |
|
2007/08 |
220 |
|
2006/07 |
267 |
|
2005/06 |
779 |
|
2004/05 |
505 |
|
2003/04 |
50 |
|
2002/03 |
65 |
|
2001/02 |
125 |
|
2000/01 |
433 |
|
1999/00 |
270 |
|
1998/99 |
165 |
|
1997/98 |
190 |
|
1996/97 |
170 |
|
1995/96 |
160 |
Please see the AIC’s recent research for further information on investors in VCTs. This research shows that most VCT investors (60%) use them as way to save for retirement.
- ENDS -
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Notes to editors
- The Association of Investment Companies (AIC) represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s vision is for closed-ended investment companies to be considered by every investor. The AIC has 349 members and the industry has total assets of approximately £268 billion.
- For more information about the AIC and investment companies, visit the AIC’s website.
- Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
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