Tuesday, May 28, 2013
A new study by AIC, a UK trade body for closed-ended investment companies, has highlighted the contribution of venture capital trusts (VCTs) to funding for entrepreneurial and innovative activity in Britain.
The AIC's "Investing for the Future" report shows that venture capital investment in Small- and Medium-sized Enterprises (SMEs) has remained strong throughout the financial crisis.
VCT managers provided details of 78 first-time investments in 2012 totalling GBP145m (USD219m), with the size of a first time investment averaging GBP1.81m. Amongst the respondents, a further GBP211m of follow-on investment went to 160 companies in 2012.
The AIC's study involved information from 399 SMEs, representing approximately 40 percent of the VCT sector. The report's salient findings included:
Ian Sayers, Director General, Association of Investment Companies said: "This research shows the Government’s support for VCTs has been well rewarded. VCTs are bridging the finance gap and supporting job creation and innovation in what remains a challenging economic environment. The combination of investment and business experience offered by VCTs provides real and sustainable benefits to the wider UK economy."