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VCT CASE STUDIES
We have included some case studies of VCT investments over the next few pages to help bring to life some of the key points that we
have been making throughout this report:
PARTICIPATION
The VCT managers covered in the
following pages have sponsored the
production costs of this report and in
return we have highlighted some case
studies and a short company profile
for inclusion here, as well as some
general commentary and attributed
quotes throughout the report.
#
1
VCT investment is not necessarily about providing seed capital to high
risk start-ups. It can be about investing in well-established companies
that have their own assets, a large workforce and long-standing
customers.
#
2
On the other hand, we’ve also highlighted the additional risk of
investing in smaller companies. They are more risky than large, listed
companies and mainstream investment funds, and there is less
information available to base investment decisions on.
#
3
However, for investors who are prepared to do their own research
and due diligence in order to bridge this information gap, it is possible
to identify fantastic opportunities where the risk/reward ratio is
favourable.
#
4
VCT investment managers can give investors access to the skills and
experience required to carry out the required level of research and
accurately assess these opportunities – for a fee of course.
#
5
VCT investment managers can also help solve some of the other
problems with small company investing. They can exercise influence
over the companies they invest in, adding value by offering guidance
at the same time as ensuring that their investors’ interests are taken
into account.
#
6
Finally, successful VCT investments have wider benefits that go
beyond the investment return: companies grow, pay more tax and
employ more people. These are the reasons why the VCT continues to
attract strong levels of support from the government.