Why invest in VCTs in 2024/25? [30 years of Venture Capital Trusts]

Venture Capital Trusts (VCTs) were announced 30 years ago today – on 29 November, by Chancellor of the Exchequer Kenneth Clarke in the 1994 Budget – and they have just been extended until 2035 at least, with the UK’s new government committed to the scheme. From 2022 to 2024 however, economic conditions have been difficult for young venture-backed businesses. Is this now changing? Could 2024/25 be a good time to invest? We get the views of three respected and very different VCT managers:
▸ Chris Lewis, Pembroke VCT (current chair of the Venture Capital Trust Association)
▸ Seb Wallace, Triple Point Venture VCT
▸ Paul Davidson, Octopus Apollo VCT

For more information on VCTs, see https://www.wealthclub.co.uk/about-vcts/.

In this discussion:
0:00 Intro to Venture Capital Trusts
2:06 What have the last two years been like for VCTs?
4:13 Are companies now being more efficient with cash?
5:07 Are the clouds of the economic backdrop moving away?
6:29 “You’re forged in fire a bit more now as a founder”
7:26 Are the markets now healthier than 2-3 years ago?
10:09 Does this mean there are better opportunities for investors?
12:16 A step change: how Britain sees entrepreneurship
14:00 Are VCTs competing among themselves for deals?
16:32 “For a while it seemed anyone could build a billion pound business, but…”
17:34 What kind of companies is the UK good at building?
19:09 What is a good exit for VCT investors?
21:49 How should we improve VCT rules and investment limits?
25:21 Ultimately, why should investors consider VCTs in 2024/25?

IMPORTANT
The opinions expressed in this video are the interviewees’ own and do not necessarily reflect the view of Wealth Club Limited. This interview, like our service, is not advice and the products featured are not suitable for everyone. Venture Capital Trusts are high risk and less liquid than mainstream investments. You could lose your capital. Tax rules can change and tax benefits depend on your circumstances. If you’re unsure an investment is right for you, please seek professional advice.