TLDR:
Key Points:
- £505mn was invested in early stage companies by VCTs in 2023
- VCT Association highlighted the importance of VCTs for funding while other venture funding declined
More than £500mn was invested in early stage companies in 2023, according to data from the Venture Capital Trust Association. The association, representing 10 of the largest VCT managers in the UK, emphasized the significance of VCTs for funding, especially as other venture funding decreased. Chris Lewis, chair of the VCT Association, emphasized the importance of VCTs for the continued success and growth of the UK and its growth companies. VCTs offer a patient approach to investing, supporting companies throughout their scale-up journey regardless of economic cycles. Notable investments in 2023 included Albion’s participation in Quantexa’s Series E funding round, leading it to become the first British unicorn of the year.
The data also revealed that the average age of a company receiving its first funding from a VCT in 2023 dropped to 5.2 years, the lowest on record, while the average age of companies receiving funding rose to 7.8 years, up from 7.2 in 2022. This demonstrates the evolving landscape of early stage investments and the role VCTs play in supporting growth ambitions. As the economic picture improves, UK entrepreneurs can rely on the VCT industry to be a steadfast partner in realizing their growth ambitions, providing both funding and advice.
