Four Mobeus VCTs raised £45 million from investors within 24 hours.
Venture capital trusts are a government scheme that encourages investment into early-stage entrepreneurial businesses.
Their primary goal is to boost entrepreneurial activity and employment by providing tax breaks for investors willing to accept the higher risks of investing in such businesses.
The four Mobeus VCTs launched at 9am on Monday 17th October seeking to raise £76m. They raised £45m within the first 24 hours – with over £24m raised in the first three hours alone.
The VCTs’ portfolios include around 41 companies, currently valued at around £365.7 million, including Virgin Wines and MPB, the a marketplace for used photo and video equipment.
The VCTs offer exposure to a diverse range of sectors, although technology-enabled investments are preferred – software and computer services represent the largest sector concentration at around 41%.
In the five years to September 2022, the four VCTs generated NAV total returns – including dividends reinvested – ranging from 74.8% (Mobeus Income & Growth 2 VCT) to 105.1% (Mobeus Income & Growth VCT), with the latter effectively doubling investors’ money.
“The demand for the Mobeus VCTs comes as no surprise: they have been the top four performing VCTs over both five and 10 years and have always had a hugely loyal following,” said Alex Davies, CEO and founder of Wealth Club.
“Indeed, more than 1,500 clients had registered their interest in the offer even before it opened.
“That said, with tax rates back to their highest in 70 years and restrictions on the amount wealthier investors can hold in a pension showing no signs of abating, we expect demand for VCTs in general to remain strong this year.”