Are Venture-Capital Trusts Worth Investing In?
Investing in early-stage companies can be a risky but potentially profitable business, particularly with the available tax breaks. Venture-capital trusts offer a way to participate in this type of investment.
A recent example of the potential success of venture-capital trusts is the debut of Beauty Tech Group on the stock exchange, which was a significant boost to the UK market. This £300 million listing was also a notable win for venture-capital trusts, with three VCTs run by Mercia Fund Management being among the first investors to recognize Beauty Tech's potential.
- Beauty Tech Group's initial investment in 2018 had annual sales of less than £1 million and was still losing money.
- Other successful examples of VCT investments include Zoopla, Gousto, and Virgin Wines.
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Author's summary: Venture-capital trusts can be a profitable investment option.