In 2022-23, venture capital trusts (VCTs) secured £1.08B ($1.34B)

 

In 2022-23, venture capital trusts (VCTs) secured £1.08B ($1.34B) in funding from retail investors, down 5% compared to £1.13B ($1.40B) raised in the previous year, per data from Association of Investment Companies reviewed by FT.   VCTs invested nearly £652M ($809M) in early-stage startups last year, with the remaining dry powder available for deployment. In the two previous years, VCTs invested £539M ($669M) and £133M ($165M), respectively.  VCTs are closed-end fund established by the U.K. government that invests in early-stage startups.  Retail investors receive up to 30% tax relief on newly issued shares, provided they hold them for at least five years.  Octopus Investments raised £237M ($294M) for its Titan VCT last year.  The strong inflows will be a positive indication for cash-starved early-stage firms amidst the venture funding pullback.