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.
- 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