The UK is one of a handful of globally significant hubs for venture capital today. Funding for the nation’s highgrowth start-ups is projected to have been close to £14bn in 2024, placing the country behind only the USA and China as desinations for venture investment. 

The groundwork for this thriving ecosystem was laid on 29 November 1994, when Chancellor Ken Clarke fired the starting gun on the creation of the Venture Capital Trust (VCT) scheme. Looking back to that critical moment for UK ventures, the success that we enjoy today was by no means guaranteed. The country’s venture capital market was fledgling at best – industry data estimates that there was only £76m of early-stage investment in the UK in 1994. And yet, the Chancellor was willing to place a bet on the ambition, innovation, and entrepreneurialism of the UK.

In the 30 years that have followed, this bet has paid off. VCTs have acted as the bedrock for the UK’s venture capital ecosystem, fostering the job creation, innovation, and growth that Lord Clarke’s scheme was intended to deliver. VCTs collectively manage more than £6.5bn, spanning a current portfolio of more than 1,000 start-ups and scale-ups, which together support more than 100,000 jobs.

And we are not done yet. One of the unique strengths of VCTs is their capacity to adapt and evolve. As this report highlights, the VCT industry is fostering a new generation of talent and technology, and we have a real opportunity to futureproof the UK’s status as a world-leading hub for venture capital. I would like to thank the members of the Venture Capital Trust Association for their ongoing support, and their contributions to this report. Our membership also thanks Lord Clarke for agreeing to become honorary President of the VCT Association. Together with Lord Clarke, we shall continue working towards a vibrant future for the UK venture capital community.

Read the full report here: https://9d9d6b6c-da02-4293-9a86-7cd4bf679695.usrfiles.com/ugd/ed7722_cbd0aad74bf54382b8185ab2f21f87b5.pdf