Venture Capital Trusts (VCTs) are a government vehicle that bring together wealthy private investors with businesses in need of scale-up funding

Octopus Investments is today launching its first VCT in ten years in a bid to raise £20m to support scaling up businesses in need of investment. The VCT, named Future Generations, is the first sustainability focussed VCT launched under the current rules. Funds raised will go into scaling up early-stage businesses that support building a more sustainable planet, empowering people or revitalising healthcare. 

Alex Davies, CEO and founder of Wealth Club says: “This is the first VCT launch from Octopus in over ten years and the first under the new rules to have a focus on sustainability.

Sustainability is an increasingly important consideration that is shaping consumer and business spending habits across the globe. Early-stage companies that can provide innovative solutions to address these issues could have the potential for attractive returns. Investors no longer have to sacrifice returns in order to invest with their hearts. Octopus already has a loyal following after early investments in brands such as Graze, Depop, Zoopla and Secret Escapes, but with research showing 80% of investors believe ESG to be an important factor in their investment decisions, we are expecting the launch to be popular.

This is the 27^th VCT to open in the 2021-22 tax year. VCTs are on track to raise record sums after attracting £710 million in support of businesses scaling up with two months of the tax year still to run.”

Octopus Future Generations VCT offers investors the opportunity to access a portfolio of early-stage companies aligned to three core investment themes each designed to disrupt industries and drive positive outcomes for the planet and society.

• Building a more sustainable planet: tackling the climate emergency by investing in and supporting companies at the forefront of reducing carbon emissions, protecting ecosystems, or creating a circular economy that removes waste.
• Empowering people: investing in businesses using technology to further society, such as those improving access to digital learning, making financial advice widely available, or providing cybersecurity and privacy solutions.
• Revitalising healthcare: improving the health and wellbeing of people around the world by investing in modern healthcare industries, such as those helping people conquer addictions, or creating software that will make healthcare services more efficient.

The new VCT will be managed by Simon King, a Partner in Octopus Ventures, one of Europe’s largest venture capital teams and the investment team behind Octopus Titan VCT, the largest VCT in the UK with £1.3 billion under management.