Venture Capital Trusts

What is Venture Capital?

Venture capital is a means of financing the development of unquoted companies (including companies listed on the AIM and OFEX markets). The aim of venture capital is to enable today’s “growth” companies to develop into tomorrow’s major businesses – thereby providing investors with significant returns on their investment. The venture capital industry in the UK has an excellent record of generating good returns for investors.

Most venture capital activity is carried out by professionally managed funds, which allows investors to spread an investment across a selection of companies. A significant percentage of venture capital money has traditionally come from institutions such as pension funds and insurance companies. However, private investors have become more significant investors in venture capital through the emergence of VCTs - special funds established to give private investors access to venture capital opportunities.