Fuel Ventures VCT launches debut £50m fundraise

investmentweek.co.uk:

The VCT will build on the manager’s track record of investing in early-stage marketplaces, platforms and Software as a Service (SaaS) businesses, and co-invest in its existing EIS funds.

The VCT will build on the manager's track record of investing in early-stage marketplaces, platforms and Software as a Service (SaaS) businesses, and co-invest in its existing EIS funds.

Calculus launches next EIS offering with tech and healthcare focus

The Fuel Ventures team is led by MyVoucherCodes founder Mark Pearson, whose investment record includes early exits from Adobe and US equity management platform Carta delivering proceeds of £29m and a 6.2x return on cost.

According to Nicholas Hyett, investment manager at Wealth Club, the focus on marketplaces, platforms, and SaaS typically results in investments with low capital intensity but the potential for «explosive» growth and high profit margins. 

He mentioned the new VCT aims to complement the «successful» EIS and SEIS funds by offering funding to businesses at a later stage. This move also aims to attract investors who may be deterred by the higher risk associated with EIS or SEIS investments.

Albion Capital launches £60m fundraise across five VCTs

Hyett added: «The new VCT is the latest in a number of recent launches — probably reflecting the increased certainty around the future of the VCT sector after the government extended a 2025 sunset clause. 

»An increase in new managers can only be good for companies and investors — bringing new investment styles to the market and increasing the number of companies that will be able to access funding.

«It is worth noting that new VCTs often take a couple of years to find their stride, building up a portfolio over time. However, Fuel