This follows the completion of their latest investment round in December 2023, where they invested £1.3 million. Blackfinch Ventures maintains its commitment to investing in a broad spectrum of early-stage tech companies with high potential across the UK. This investment strategy is in harmony with the national objective of fostering technological innovation.

Richard Cook, CEO, says: “I’m incredibly proud of the contribution Blackfinch is making to the UK economy through the investment and support which we provide to our VCT investee companies. Over the years, we have established a strong portfolio of high-growth firms which provide an industry-leading exposure to underlying revenue growth. It is fantastic that our VCT is now able to target dividend payments for 2024 and beyond as this now enables a wider range of investors to consider investing with Blackfinch.”

The significant achievement of the VCT dividend by Blackfinch Ventures is highlighted by data from Wealth Club, an alternative investment platform. This data showcases the outstanding performance of Blackfinch Ventures' portfolio, notably for its high exposure to rapidly growing companies, leading in annual revenue growth among UK VCTs. This distinction validates Blackfinch Ventures' proficiency in identifying and nurturing companies on robust growth paths, with 85% of its investments demonstrating an annual revenue increase of 25% or more.

Dr Reuben Wilcock, Head of Ventures at Blackfinch, reflects on their investment philosophy: “Our investment strategy is in step with the UK’s drive to nurture a dynamic early-stage tech ecosystem. We emphasise identifying and supporting early-stage businesses that showcase not only innovative technology but also sustainable and scalable growth, contributing to the UK’s technology sector and economy.”

In the run up to tax year end, Nicholas French, Chief Distribution Officer at Blackfinch, adds: “Understandably, advisers look to track record to find confidence in their recommendations to clients. The announcement of the VCT intention to make its first dividend payment is a game-changer for those seeking income paying VCTs. Not only does the Blackfinch VCT have many award-winning companies in its portfolio, they are also well diversified both geographically and by sector, giving advisers a strong reason to consider them within the holistic review of client investment objectives.”

The latest investment cycle by Blackfinch Ventures includes additional funding for two companies in the existing VCT portfolio, as well as an investment in a new portfolio company, Quin. Founded by a pair of sisters, Quin leverages deep-learning to analyse anonymised website traffic in real-time. This enables the ethical prediction of user behaviours, facilitating the delivery of pertinent, timely experiences that lead to stronger conversions. Quin's AI system is designed for easy integration without the need for coding expertise, resulting in significant campaign cost reductions and a 30% revenue increase.

Tended, another standout startup in the Blackfinch Spring VCT portfolio and a beneficiary of the recent investment round, focuses on enhancing safety in high-risk sectors such as the rail industry through its wearable devices. The global recognition of Tended's commitment to safety was cemented when it featured in Time Magazine's Best Inventions of 2023. Such acknowledgements underscore the impactful technological advancements that Blackfinch Ventures seeks to nurture.

These investment activities of Blackfinch Ventures align with the Chancellor's Mansion House reforms, which are designed to strengthen the UK's technology and science sectors. A pivotal element of these reforms is the £250 million Long-Term Investment for Technology and Science (LIFTS) programme, which is part of a broader strategy to funnel up to £1 billion into UK tech firms from various funding streams.

Dr Wilcock concludes with a broader perspective on the impact of their investments: “Beyond the financial returns, VCTs play an important role in the UK’s economic fabric. They supply vital capital to emerging companies, fuelling not just their growth but also contributing to job creation and wider economic development. Our investments in these early-stage companies are part of our commitment to propelling the UK’s economic potential, promoting a culture of technological advancement and innovation that allows society to thrive.”