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Octopus launches £30mn fundraise for Future Generations VCT

Octopus launches £30mn fundraise for Future Generations VCT
The Future Generations VCT invests in early-stage firms that tackle climate change and improve access to healthcare (Pexels/Photomix)

The Octopus Future Generations venture capital trust has opened a £30mn fundraise.

The vehicle invests in early-stage firms that tackle climate change, use technology to further society, and improve the health and wellbeing of people through modern healthcare industries.

The VCT, which was launched last year with a £20mn fundraise, has an all-female board, and is managed by Simon King, a partner at Octopus.

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The share offer is open until January 18 2024 but may close earlier if fully subscribed.

The minimum investment is £3,000, and the maximum investment qualifying for tax relief is £200,000.

VCTs offer investors tax relief of up to 30 per cent of their investment on the first £200,000 invested each year, and dividends and capital gains are also tax-free. 

Investors must hold the shares for a minimum of five years in order to qualify for the tax break

Jess Franks, head of retail investment products, Octopus Investments said in the current fundraising environment, companies with high growth potential are struggling to raise capital.

“However, VCTs continue to show their significance in how they allow investors to provide this support to smaller UK companies. 

“Similarly, VCTs allow long-term minded investors to access private markets opportunities to diversify their portfolio as difficult public market conditions persist.”

The Future Generations VCT provides investors with a high-risk appetite with a way to invest thematically in a tax-efficient way, she added.

Companies in the VCT’s portfolio include Cobee, which uses digital technology to simplify the management of employee benefits, and Oto Health, a mobile app which helps adults suffering from tinnitus to access therapy, physical exercise guides and relaxation practices to ease their symptoms.

This VCT is the fifth offering from Octopus, which also has two AIM VCTs alongside Octopus Apollo VCT and its flagship Octopus Titan VCT.

In October it launched a £40m fundraise for the Apollo VCT, which has a focus on fast-growing B2B software businesses

Alex Davies, chief executive and founder of Wealth Club said a successful business by its nature will solve a problem, and some of the biggest problems around today are to do with climate change and providing people with access to better healthcare.

“Early-stage companies - such as the ones invested in by Octopus - that can provide innovative solutions to address these issues have the potential to offer investors attractive returns.”

sally.hickey@ft.com