The venture capital trust sector raised 8 per cent more in 2013 to 2014 tax year than during the previous tax year (£402.7m), data from the Association of Investment Companies revealed.
The VCT sector raised £435.7m in the 2013 to 2014 tax year, including enhanced share buy-backs.
If enhanced share buy-backs are deducted, the VCT sector raised £420.2m in the 2013 to 2014 tax year, a significant increase of 56 per cent on the £269.4m raised in the previous tax year and the fourth highest level of annual fundraising.
In the year to 5 April 2014, £17.3m of funds raised were a result of enhanced share buy-backs, just 3.9 per cent of the total figure raised.
In the same period to 5 April 2013, 33 per cent of funds raised were a result of enhanced share buy-backs.
Data also revealed that, in the year to 5 April 2014, total assets of all VCTs increased by 12 per cent from £2.87bn to £3.21bn.
Ian Sayers, director general of the AIC, said: “The strongest fundraising season for the VCT sector in eight years and good performance has seen VCT assets rise to an all-time high.
“It is clear that demand for the sector continues to grow, as investors recognise the place of VCTs in a balanced portfolio and the role that tax reliefs play in offsetting the inherent risks of investing in smaller companies.”
