Is the VCT industry fulfilling its purpose?

Reviewing their popularity

Recent figures suggest the amount raised by VCTs fell by more than 23% between 1 April 2018 and mid-February 2019, writes Andrew Wolfson, managing director of Pembroke VCT.

The decline, which follows almost record-breaking VCT fundraising in the previous tax year, could be put down to numerous factors. Indeed, many are highlighting heightened risk aversion among retail investors in the face of Brexit as a reason for the slowdown. Brexit may be a contributing factor, but it is likely the change also stemmed from a rule introduced last year that requires VCTs to deploy a certain amount of cash within a set period.  With the shift encouraging VCT managers to invest more of their capital into early-stage, higher-risk companies, we think the industry has b...