Interesting new insights in getting finance from UK Venture Capital Trusts (VCTs).

Currently (06) the have £1.3Bn in uninvested cash that needs to be invested or they will now be penalised under new rules.


VCTs prefer to deal direct rather than via an OFEX IPO but many of those approached via OFEX traders will be VCTs and they invest this way to spread risk.
  • If they get an OFEX IPO they tend to invest alot less, say max 10% of the raise
  • Dealing direct they can go higher, say £500k to start with follow on funding
  • They much prefer AIM and like to invest in a private co before it goes to AIM
  • They prefer this because the OFEX market can move against you on valuation alot if theres not lots of good news
  • There are 90 odd VCTs but only 25 any good for IT
  • VCTs are prepared to support overseas expansion if the VCT rules can be met (by hook or by crook)
  • VCTs can invest within 3 months and are happy to co-invest with others they like