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AIC: VCTs' vital role supporting small businesses through the pandemic

AIC: VCTs' vital role supporting small businesses through the pandemic

07 October 2021

The AIC have recently published a report on VCTs' vital role supporting small businesses through the pandemic. Please click here to read the full brochure or please click here to view their website. This report further highlights some stocks that the Amati AIM VCT is invested in.

It reveals the important role that VCTs have played in supporting SMEs through the pandemic. In H1 2020, VCTs have invested £695 million in small UK businesses, including £219 million in follow-on investment. The ability of VCTs to provide ongoing support to businesses is one of the sector’s key advantages and since the scheme was adapted in 2017 to maintain its focus on higher risk investments, VCTs have invested £1.6 billion in small and medium sized-enterprises (SMEs).

Of 266 investee companies surveyed, 71 had a turnover of between £2 million and £5 million when the survey data was collated. 16 VCT-backed companies had a turnover greater than £10 million, while four exceeded £20 million. This demonstrates how VCTs are supporting companies in the early stages of their development.

Key findings of the report:

  • At the time the survey data was collated*, 16 VCT-backed companies had turnover greater than £10 million.

  • 30% of investee company turnover was earned overseas.

  • The total number of people employed by 288 SMEs surveyed was approaching 14,000.

  • £357 million was invested in R&D by 181 companies in the last financial year.

  • 181 companies reported R&D spending averaging £1.97 million per SME.

Source: AIC 6 October 2021*