VCTs prove resilient against wider venture capital industry decline
Deal volume also fell, with the number of deals completed in 2022 (3213) down by 16% on the 3830 deals completed in 2021.
Over the 2022 calendar year, VCTs invested £664m across 345 investments, data from the Venture Capital Trust Association revealed.
Fundraising figures were also strong for the 2022/23 tax year, with £1bn of new capital being raised for the second year running.
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At the same time, the wider UK venture capital industry suffered a 23% drop in funding, as, according to KPMG data, investors were pushed to take a more cautious approach amid global economic turmoil.
Deal volume also fell, with the number of deals completed last year (3213) down by 16% on the 3830 deals completed in 2021.
The VCTA — which is made up of more than 90% of the VCT industry by value — also found that total sales of VCT-supported companies amounted to £18.2bn in 2022, representing an increase of 54% on the previous year.
Exports also rose significantly, with sales totalling over £3.7bn last year. This was a 29.8% rise on the 2021's figure, which illustrates the growing number of businesses which are expanding overseas.
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Will Fraser-Allen, chair of the VCTA, said: «UK PLC is increasingly in need of innovative young businesses to push the economy forwards and help to drive growth by investing in new technologies such as artificial intelligence.»
He added: «With government policy also looking to bolster UK growth by encouraging investment in fast-growing companies, the vital role of VCTs in the investment ecosystem has never been clearer.»
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