Venture Capital Trusts

Venture Capital Trusts (VCTs) are investment funds listed on the stock market that pool money from individual investors to invest in small, high-growth private companies. They aim to support early-stage businesses with potential for significant growth. VCTs offer investors the chance to earn returns through dividends and capital gains, often with attractive tax incentives like income tax relief and tax-free dividends. While they can be riskier than traditional investments due to the nature of early-stage companies, VCTs play a role in fostering innovation and entrepreneurship by providing vital funding.