Venture capital investment hits £365m in bumper year

INVESTMENT in venture capital trusts (VCTs) continued to rise following the recession, hitting £365m last year.

The sum was the fourth highest amount invested in the product since it was launched in 1995, and higher than the £344m invested a year earlier, according to the Association of Investment Companies.

VCTs could be set to take off even further from April next year, when sweeping reforms unveiled in chancellor George Osborne’s Budget last month come into effect.

Among the reforms is a widening of the criteria for qualifying companies, from 50 to 250 employees and gross assets from £7m to £15m.

Director general of the Association of Investment Companies, Ian Sayers, said: “The level of investment in VCTs has increased year-on-year since the financial crisis of 2008, proving that, as the economy recovers, the demand for investment from SMEs grows.”