Octopus launches £50m raise for VCT backing high growth start-ups

11th September 2015


Venture capital trust (VCT) provider Octopus Investments has launched a new £50 million raising for its Titan VCT allowing more people to invest in high-growth, early-stage companies.


Octopus has announced the £50 million fund raise to meet growing demand for early-stage companies. The Titan VCT already has £215 million assets under management and has a strong track record of delivering returns, returning 52p per share to investors since launch .


Since its launch in 2007, it has focused on investing in high-growth, early-stage companies and given investors the opportunities to back 50 small companies, some of which have gone on to become well-known names such as members-only travel company Secret Escape.


Alex Macpherson, head of the ventures team at Octopus and fund manager of the Titan VCT, said: ‘Titan VCT offers investors the opportunity to access a really exciting and unique portfolio of early stage companies that has been built up over the last eight years.


‘Every year, we handpick a small selection of new investments from a pipeline of hundreds, and then work with the management teams to help those businesses realise their full potential.’


Macpherson said the latest fundraise ‘gives investors the opportunity to support both established and developing portfolio companies as well as new businesses’.

He added that the ‘entrepreneurial scene in the UK is thriving’ and that Octopus works ‘with some of the most talented entrepreneurs’.


VCTs offer investors generous tax breaks for taking a risk on start-up companies. Investors receive 30% upfront income tax relief, tax-free dividends and tax-free growth, providing the shares in the VCT are held for at least five years.


Paul Latham, managing director at Octopus, said the demand for VCTs is growing.


‘We expect this to increase on the back of ongoing changes to pensions, including the Finance Bill’s legislation regarding the tapering of relief on pensions contributions for high earners,’ he said.


‘We believe demand for VCTs will continue to grow as more people look to benefit from the growth potential that these young, dynamic businesses can offer and the role VCTs can play as part of a diversified portfolio of investments.’



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