Over the past three decades, VCTs have grown into a cornerstone of the UK’s investment landscape, providing essential financial support to the nation’s most forward-thinking businesses, creating stable jobs, and managing a significant amount of patient capital.

Chris Lewis, Chair of the Venture Capital Trust Association (VCTA), commented: "What began as a specialised initiative to connect private investors with high-growth businesses has evolved into an indispensable pillar of the UK’s startup funding ecosystem. VCTs have transformed the growth trajectory of thousands of SMEs while delivering consistent value for shareholders."

VCTs have played a critical role in fostering innovation across sectors in which the UK has become a world leader, such as fintech, life sciences, and AI. Since 2016, members of the VCTA have invested over £3.6 billion. These investments have not only supported the ambitions of entrepreneurs but have also driven wider economic benefits.

Key highlights of the VCT scheme’s impact include:

• Job creation: more than 106,000 people are currently employed by VCT-backed companies
• Regional economic growth: investments have supported businesses across all regions of the UK, helping to address funding disparities outside London and the South East
• Scale: VCTs now manage over £6.5bn in assets, demonstrating the scale and significance of the VCT industry in supporting the UK's entrepreneurial ecosystem

Chris Lewis continues: "The recent Budget has highlighted the importance of VCTs as one of the three pillars of tax-efficient investing in the UK, alongside pensions and ISAs. With the overall tax burden increasing, VCTs offer a unique opportunity for investors to align their financial goals with the broader ambition of stimulating growth in SMEs and creating high-quality jobs."

As the scheme reaches this milestone, the VCTA and its members are committed to building on its legacy. The potential to expand the scheme further to support a broader range of innovative businesses is a key area of focus, particularly in addressing emerging opportunities in green energy, life sciences, and advanced manufacturing.

"Lord Clarke’s vision of creating a dynamic, entrepreneurial economy has stood the test of time. As we celebrate this milestone, we’re excited about the future, ensuring VCTs remain at the forefront of funding innovation and growth in the UK. Together, we can build an even stronger foundation for the businesses of tomorrow."

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