3 January 24

Giving investors access to UK innovation

The UK is the biggest venture capital market in Europe, and more billion-pound companies are created here than anywhere else[1]. According to the Department for Business and Trade, the UK has created 114 innovative companies that have a market value of more than $1 billion[2]. This means investors seeking growth, innovation and entrepreneurship can find it right here in the UK.

It’s no surprise, therefore, that VCTs – which make it possible for UK investors to own their own stake in a venture capital portfolio – are going from strength to strength. According to the Association  of Investment Companies (AIC), VCT fundraising has topped the £1 billion mark twice in consecutive tax years, with a record £1.13 billion invested in the 2021/22 tax year and £1.08 billion invested in the 2022/2023 tax year.[3] These inflows into VCTs reflect the strong demand from people keen to invest in UK smaller companies while also claiming the generous tax incentives they offer.

 Why is the UK such a great place to start and grow a business?

  • It’s an academic powerhouse: the UK is home to four of the top ten universities in the world.[4] This makes the UK an exceptional place for raising capital to fund business innovation spun out of academic research.
  • A business-friendly environment: the UKoffers a range of tax reliefs designed to encourage home-grown start-ups and attract international companies. The UK is also one of the most investor-friendly countries in the world, encouraging investment through tax-efficient investment vehicles such as VCTs and the Enterprise Investment Scheme.
  • Excellence in the industries of the future: the UK is a hotbed of innovation in key industries shaping all of our futures. These industries include life sciences and healthcare, fintech (financial technology), and deeptech (technology based on scientific advances and discoveries, or on engineering innovation). In 2022, the UK was ranked 4th out of 132 economies featured in the 2022 Global Innovation Index.[5]

Source: UK Department for Business & Trade.

Triple Point Venture VCT: A new share offer

The Triple Point Venture VCT is open for investment, giving investors access to a portfolio of ambitious early-stage UK companies, as well as the opportunity to claim significant tax incentives including income tax relief of up to 30%[6], and tax-free capital gains and dividends.

Being a younger VCT means it gives regular VCT investors genuine diversification at the portfolio level while complementing their other VCT holdings in more mature companies. It also works for newer VCT investors – especially business owners who see the potential in owning a B2B-focused portfolio in the current climate.

To find out more about the Triple Point Venture VCT, find out about our investment process and download planning scenarios to help you identify opportunities with your clients, please visit vct.triplepoint.co.uk.

Important information

This article is an advertisement for the purposes of the Prospectus Regulation Rules and is not the prospectus. The Triple Point Venture VCT carries all the risks of investment in smaller companies and places investor’s capital at risk. There is no guarantee that target returns will be achieved, and investors may get back less than they invested. Past performance and forecasts are not a reliable indicator of future performance. Tax treatment depends on the individual circumstances of each client and is subject to change. Tax reliefs depend on the VCT maintaining its qualifying status. Investors should only subscribe for shares on the basis of information contained in the Prospectus which is available via the Documents section of the website. This article has been approved by Triple Point Administration LLP, which is authorised and regulated by the Financial Conduct Authority.

[1] https://growthbusiness.co.uk/uk-gets-top-spot-in-europe-for-venture-capital-funding-2570561/

[2] Source: UK Department for Business & Trade

[3] https://www.theaic.co.uk/aic/news/press-releases/second-highest-vct-fundraising-to-boost-ambitious-uk-companies

[4] https://www.topuniversities.com/university-rankings/world-university-rankings/2024

[5] https://www.wipo.int/global_innovation_index/en/2022/

[6] Income tax relief is available on the first £200,000 invested.

 

 

Tags on this post: vct