Octopus Investments, an investment manager on a mission to back the people, ideas and industries that will change the world, today announces it has opened a new £30 million fundraise for its two Alternative Investment Market (AIM) VCTs.
Since its introduction in 1995, AIM has helped thousands of companies to raise growth capital. This market has become a pivotal funding platform for UK smaller companies, helping them access the capital needed to scale and succeed.
AIM is currently home to over 620 companies, operating in over 40 different sectors, with a combined worth of more than £63 billion1 . This diversity of companies and sectors within AIM is often overlooked, but spotting growth potential early can translate into meaningful returns for investors.
For those comfortable with the risks of investing in smaller companies, getting exposure to these companies via a VCT can prove attractive. As well as the long-term potential growth of smaller companies, the tax benefits associated with a VCT can enhance the position for investors further.
The established nature of the Octopus AIM VCTs, having been launched in 1997 and 2005 respectively, means they include a broad range of AIM-listed businesses at varying ages of maturity. This means investors can instantly benefit from exposure to portfolios of over 70 companies, many of which have strong growth potential and are paying dividends.
Two such companies within the Octopus AIM VCT portfolio include:
- Netcall: a software company that supports organisations in driving digital transformation. It streamlines workflows and manages customer interactions, delivering significant cost efficiencies and enhanced user experiences through the use ofintelligent automation and customer engagement solutions.
- Diaceutics: a biotech company that generates insights from its aggregated testing data from its worldwide laboratory network. This provides real world evidence that informs the decision making of pharmaceutical companies across hundreds of precision medicine projects.
The Octopus AIM VCTs are managed by the Octopus Quoted Companies team, which includes some of the most experienced AIM-focused fund managers in the market. The team comprises11 seasoned professionals with a 30-year track record in AIM investing.
The team has welcomed recent increases to VCT investment limits following the Autumn Budget in November last year. For one, it allows a wider pool of AIM‑listed companies to qualify for funding. Secondly, it broadens opportunities and enables Octopus AIM VCTs to back innovative businesses at later stages of growth while maintaining exposure to proven AIM company names.
Freda Isingoma, Lead Fund Manager of the Octopus AIM VCTs, Octopus Investments, commented:
“While the past few years have presented challenges for UK smaller listed companies, we are now witnessing clear signs of recovery. The recent VCT rule changes further underscore the UK Government’s commitment to supporting small, growth companies, while inflation has stabilised and interest rates continue to ease.
“Within our own portfolio, we have delivered several strong exits over the past year and are seeing renewed momentum in IPO activity. Our pipeline remains robust, with high quality opportunities at historically low valuations creating, in our view, a compelling entry point for investors as sentiment towards growth companies continues to improve.”
Kristy Barr, Co-Head of Retail, Octopus Investments said:
“The changes to the investment limits announced in the Budget we hope to see reinvigorate AIM. They significantly increase the investible universe for AIM VCTs to some larger and more established businesses. It will also enable us to back successful UK companies for longer with further capital, allowing them to unlock their growth ambitions. This should make AIM an increasingly attractive place for entrepreneurs to source long-term funding for their businesses.
“This is also bolstered by the support from the Government with the Mansion House Accord and AIM reforms, announced by the London Stock Exchange, that look to simplify requirements and reduce costs. It all reinforces the Government’s commitment to AIM as a key growth engine for the UK economy.”
The latest fundraising offers investors the opportunity to invest into both Octopus AIM VCT plc (AIM VCT) and Octopus AIM VCT 2 plc (AIM VCT 2). Octopus AIM VCT targets 5% dividend yield or 5p per share, whichever is greater. Octopus AIM VCT 2 targets a 5% dividend yield or 3.6p per share, whichever is greater.
VCTs can enable investors to receive 30% income tax relief (as long as the shares are held for at least five years), tax free growth and tax-free dividends. The new share offer for AIM VCT and AIM VCT 2 is open until 12 January 2026 for the 2026/2027 tax year. The offer will close earlier if it becomes fully subscribed.
New investors have the option of buying shares in one or both of the Octopus AIM VCTs. They can split their investment 60/40 between Octopus AIM VCT and Octopus AIM VCT 2, or place 100% of their investment into either VCT.