Manchester-based venture capital investor and small business lender Praetura has launched the next offering of its Praetura Growth VCT to predominantly back high-growth companies outside London and the South East.
Since its launch in April 2024, the VCT has deployed the majority of its initial capital and is now aiming to raise an additional £10m over the next 12 months.
The seven businesses backed by the VCT so far include Manchester-based Fintech AccessPay, Ocula, a retail AI start-up from Belfast, and Percayso, the Nottingham InsureTech company that has delivered a 400 per cent increase in revenue over the last 12 months.
Most recently, the VCT supported fast-growing SeatFrog, the London-based app that that enables rail passengers to easily upgrade tickets and adjust travel plans.
The current subscription offer, open as of 8 November 2024, will close on 3 April 2025 for the 2024/2025 tax year or when fully subscribed.
VCTs are a specialist form of investment trust that are required to invest in early-stage businesses.
The riskier nature of investing in young, innovative businesses is offset by tax incentives, tax-free dividends and exemption of capital gains tax (CGT) on profits.
The rates of CGT increased in the Chancellor’s Autumn Budget and the VCT scheme was extended to 2035, helping to increase demand for VCTs.
Praetura Growth VCT is focused on investing in companies based predominantly in the North of England, enabling investors to diversify their portfolio with access to high growth businesses in innovation hubs outside London.
Praetura Growth VCT is promoted by Praetura Investments, the division of the Praetura group of companies that houses its alternative retail investment offerings.
These also include the Praetura EIS Growth Fund and Praetura Inheritance Tax Planning Service, which enable investors to support SMEs at various stages of their growth, while benefitting from attractive government-backed tax reliefs.
Over the past year, Praetura Investments has seen strong interest across its tax-efficient investment offerings, achieving a 24 per cent fundraising increase year-on-year as at the end of October.
This strong performance underscores investor confidence in Praetura’s tailored opportunities and reflects the growing demand for tax-efficient investment strategies.
Sam McArthur, partner at Praetura Investments, said: “Supporting ambitious businesses in regions outside of London and the South East has always been central to Praetura’s investment strategy.
“We believe that there is a wealth of talent and potential across the UK, and our investments are designed to help these companies to grow and succeed. Through Praetura Growth VCT, we’re able to offer investors a way to be part of this regional development story while providing the benefits of a tax-efficient investment.”
Praetura Investments is committed to supporting businesses across the North of England and beyond, with a focus on investing in high-potential companies that contribute to sustainable growth.