VCT fundraising at fourth highest level since launch
More than £365m was raised for VCTs in the 2010-2011 tax year, making it the fourth highest year for fundraising since the schemes was introduced in 1995.
Association of Investment Company (AIC) figures show that £365m was raised by the venture capital trust (VCT) sector during the 2010-2011 tax year, 6 per cent more than the £344m that was raised in 2009-2010 and the fourth highest amount since VCTs were first launched in 1995.
By comparison, when VCTs were first launched they raised only £160m.
Ian Sayers, director general of the AIC said the considerable capital raised by VCTs in the last tax year will help VCTs to continue to support smaller UK companies and play their part in establishing the UK as a home of enterprise.
"The level of investment in VCTs has increased year on year since the financial crisis of 2008, proving that, as the economy recovers, the demand for investment from small to medium enterprises grows."
Will Fraser-Allen, deputy managing partner at Albion Ventures, said Albion had predicted the AIC figures would be up on recent years.
"It is good news particularly if you take it in conjunction with the positive news in the Budget, where the government gave some clarity on VCTs.
"At Albion we had a much better fundraising year on year and are optimistic about the next few years."