VCT guide

63 62 PROVIDERS IN FOCUS PROVIDERS IN FOCUS About the provider Founded in 1988, NVM is one of the longest- established venture capital trust managers focused on investing in SMEs. Since 1995, the three Northern VCTs have invested over £440 million in 246 companies, ranging from start- ups and growth capital deals to management buy-outs. NVM is committed to building a portfolio of investments in innovative UK smaller companies with significant growth potential across a diverse range of sectors. The NVM team has a track record of identifying opportunities to support the growth of young companies, providing professional guidance and achieving profitable realisations. Our previous VCT Offers The investment objective for the Northern VCTs is to provide high long-term tax-free returns to investors through a combination of dividend yield and capital growth, by investing primarily in unquoted UK manufacturing, service and technology businesses which meet NVM’s key criteria of good value, growth potential, strong management and ability to generate cash in the medium to long term. Previous offers from NVM have been very popular with VCT investors and target yields are currently between 4% and 5% per annum of Net Asset Value. NVM is planning to launch a new offer in 2020. Case Study NVM invested £2 million development capital in Pure Pet Food (Pure), Halifax, in March 2019. Founded in September 2012, Pure manufactures and sells specialist dehydrated and freeze- dried pet food including snacks and treats/ toppings for dogs and cats. The business uses human-grade ingredients which are dehydrated or freeze-dried and convenient, to produce natural pet food mixes to meet the nutritional needs of dogs and cats using its own recipes and manufacturing/mixing process. The food appears to be particularly suited to animals with digestive issues/ sensitivities and other allergies or associated ailments. The £2 million funding from NVM will be used to build out and scale a direct-to-consumer and subscription service for the speciality pet food management via online marketing channels. NVM introduced a specialist digital marketing consultancy to assist management with this task. Additionally, NVM’s investment would provide the team with funding to invest in the wider business, such as larger premises and increased staffing to facilitate growth in the customer base. Since investment we are already seeing some good growth in customer acquisition and Pure is successfully converting initial orders into recurring purchases or formal subscriptions. www.nvm.co.uk About the provider Since 2000, Octopus Investments has been providing advisers and investors with fresh ideas that help them do more. As well as being the market leader in venture capital trusts and inheritance tax investments, Octopus also provides a cash savings service, a property-backed peer-to-peer investment, and investment funds that draw on deep experience in smaller company and multi manager investing. As at 30 June 2019, Octopus manages £8.5 billion on behalf of its customers. Our VCT Offer Octopus Titan VCT is the UK’s largest Venture Capital Trust, giving investors the opportunity to participate in the growth of some of the UK’s most exciting entrepreneurial businesses. Managed by one of Europe’s most experienced investment teams, it currently has a portfolio of over 75 early stage companies operating in a diverse range of sectors. Titan has backed some of the UK’s most successful entrepreneurs, including the founders of Zoopla Property Group, Secret Escapes and graze.com . Case Study Elvie is looking to develop a range of products to improve women’s lives and provide support through different life stages such as pregnancy, motherhood and menopause. In so doing, the company aims to build a strong brand that consumers associate with well-designed, beautiful devices that improve women’s health. Elvie launched its second product, the world’s first silent, wearable, fit-in-your-bra breast pump, in late 2018. The first batch sold out within minutes, a phenomenon that has repeated itself several times on both sides of the Atlantic. The success of Elvie Pump has boosted interest in the company’s first product, Elvie Trainer, a device which helps with pelvic floor exercises. Elvie made history in 2019 when the company successfully completed the largest ever femtech fundraise. Femtech is the umbrella- term for apps, services, and devices that use technology to improve women’s health and wellbeing. For decades, healthcare products were designed with little attention paid to the physiological needs of women. Femtech has emerged to change that, and Elvie’s co-founder, Tania Boler, is at the forefront of the trend. www.octopusinvestments.com