17 November 21

Why now is the right time to invest in Triple Point’s VCT

Fundraising for UK VCTs has climbed at tremendous pace this year as investors look to take advantage of the many opportunities associated with investing in early-stage British companies. Some have predicted that this year’s fundraising will even exceed the previous record of £776m set in 2006. For investors, it is vital that this enthusiasm is matched with careful consideration of the opportunities, and that not all managers are the same. So why should you consider Triple Point’s Venture Fund?

Early-stage investing

We invest early, typically pre–Series A, B2B technology businesses. This gives a better valuation on entry, which in turn targets bigger returns for shareholders. There are typically more exits in B2B investing, and the goal for us is capturing the maximum amount of growth. We aim to mitigate the risk of investing early by focusing on companies that are addressing corporate challenges. We call it our challenge led strategy. 

Differentiated

There is big money involved in the UK’s start-up scene. Over $15bn was invested in 2020, meaning UK tech VC investment is third highest in the world. VCT’s have a huge role to play in driving innovation. the Venture Fund offers investors something different to many other VCTs. We invest in early-stage technology enabled companies solving business critical challenges. We call this our challenge-led investment strategy.

Technology-first businesses

ll our portfolio companies, being technology-first businesses, can operate effectively with remote, or home working and few of them depend heavily on the regular physical presence of staff in one specific location.

A great time for equity based investing

All of our funding has been equity-based, and the majority of our companies have little or no debt. One feature of venture capital funding is that it is equity, not debt, driven. It is often excess debt that can cause a company to run into difficulty when revenues are impacted. 

Opportunity for innovation:

Experience shows that times of great change create significant opportunities for entrepreneurs to innovate - think Slack and Uber which both emerged around following 2007/09 crisis. In 2020, 93 unicorns (privately-held companies worth over $1bn) were minted and the UK’s high-growth sector has doubled in size since 2017 to be worth £585bn. Accelerated by the post Covid societal shift, business to business software is the most exciting opportunity in the market today.

The tax advantage:

Increases in dividend taxes is a further incentive for investors looking to reduce their tax bill. If you invest in a VCT you receive up to 30% upfront tax relief and tax-free dividends along with all the potential upside of investing in an early stage growth company.

Triple Point Venture Fund VCT

Triple Point’s Venture Fund VCT is now in its fourth year, having just launched a new top-up offer. Throughout the pandemic, the investment team have been actively working to provide new businesses with the money and support they need to grow, while giving smart start-ups access to fast, reliable capital at the earliest stages of their lifecycle.

Since its inception, the fund is over £25m, invested into 27 early-stage companies across 11 sectors that actively solve challenges facing large corporates. With one exit to date, the Venture Fund VCT has delivered a total return over 14% from September 2018 to September 2021 (including dividends and capital).

Risk warning: The Triple Point Venture Fund 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.