We’ve seen demand for Venture Capital Trusts grow over the years and this is combining with an exciting outlook for venture capital.
In economic uncertainty, the established businesses tend to spend less on innovation, more top-tier talent can become available due to layoffs, and there’s often less competition to invest in the best business ideas. This creates a window of opportunity for new businesses to enter markets and become the next household name.
With this in mind, Octopus Future Generations VCT, managed by Octopus Ventures – the team that helped unearth unicorns like Zoopla - is currently open for new investment. The VCT invests in UK businesses with high growth potential across three themes which Octopus believes have the power to transform the world for the better: building a sustainable planet, empowering people, and revitalising healthcare.
This VCT could be of special interest to clients who would welcome investing in businesses Octopus believes can bring both positive societal change and financial return, whilst benefiting from 30% income tax relief.
Register for the Octopus Future Generations VCT launch webinar
Thursday 23 February, 11am
Octopus will be hosting a webinar where you can hear from Simon King, the lead fund manager of the VCT, on the VCT’s three investment themes and why Octopus are excited for the future.
In this webinar:
- Simon will discuss the current outlook for venture capital and why now’s an exciting time to invest in early-stage companies.
- He will explain the VCT’s investment approach, the sustainability themes, and why they matter.
- How companies in the portfolio are helping to shape future generations.
- How clients can invest in the current fundraise.
Register for the webinar >>
Early bird discount ending on 3 March 2023
Any investors with applications and cleared funds received by 3 March 2023 will benefit from an early bird discount of 2% off the initial fee.
If your client has invested in a previous fundraise for any Octopus VCT, then they’ll also qualify for a further 1% loyalty discount. That means an existing investor won’t pay any initial Octopus charge for applications received up to 3 March 2023.
About Octopus Future Generations VCT
Initially launched in January 2022, Octopus Future Generations VCT has a unique mandate and saw considerable demand from investors and advisers, raising £40 million in its maiden fundraise.1
The VCT has already invested in 18 businesses aiming to tackle some of society’s most compelling challenges.1 Octopus believes these types of businesses have the opportunity to deliver excellent returns. Why?
- Tackling society’s biggest problems means there are huge markets to address.
- The demand for solutions to the planet’s challenges is urgent and growing.
- People increasingly want to work for businesses that make a positive difference in the world, therefore these companies are attracting the best talent.
Examples include:
- Oto, a mobile app created by a team of doctors to help people manage their tinnitus. Tinnitus affects many people globally, with 15% of adults in Europe affected by the condition.2
- Neat is an insurance provider that focuses on having the products it covers repaired or reconditioned, rather than being automatically thrown away. It’s been shown that if consumers don’t change their habits, global electronic waste is expected to reach 120 million tonnes per year by 2050.3
Learn more or apply online now >>
Risks to keep in mind
- The value of a VCT investment, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest.
- Tax treatment depends on individual circumstances and may change in the future.
- Tax reliefs depend on the VCT maintaining its VCT-qualifying status.
- VCT shares are by their nature high risk, their share price may be volatile and they may be hard to sell.
1Octopus Investments, 13 January 2023.
2Tinnitus prevalence in Europe: a multi-country cross-sectional population study, paper, The Lancet, 3 November 2021.
32022 Global E-waste already weighs more than four Burj Khalifa, article, Unlock net zero, 3 March 2022.
These investments are not suitable for everyone. This email does not constitute advice on investments, legal matters, taxation or any other matters.
