More than £500mn was invested in early stage companies in 2023, data from the Venture Capital Trust Association has shown.
The body, which represents 10 of the largest VCT managers in the UK, said its members invested £505mn, showing the importance of VCTs for funding while other venture funding declined.
Chris Lewis, chair of the VCT Association, said: "This data highlights how important the continued success and growth of the VCT scheme will be for the UK and its growth companies.
"VCTs offer a patient approach to investing, backing companies throughout their scale-up journey regardless of economic cycles.
"As the economic picture improves, UK entrepreneurs know they can count on the VCT industry to be a steadfast partner in realising their growth ambitions, providing both funding and advice."
The association said 2023 saw a number of "notable investments", including Albion’s participation in Quantexa’s Series E funding round which saw it become the first British unicorn of 2023, and Transreport’s £10mn funding round which included investment from Pembroke and Puma VCTs.
The data also showed across all investments, the average age of a company receiving its first funding from a VCT in 2023 dropped to 5.2 years, the lowest figure on record.
While the average age of companies receiving rose to 7.8 years, up from 7.2 in 2022.
tara.o'connor@ft.com
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