VCTA Flyer 2024: Economic Impact and Benefits of VCTs (Pembroke VCT)

Summary

• VCTA members have invested £3.6bn since 2016 into start-ups and scale-ups, including over £500m deployed in 2023.p.2
• VCT-backed companies employed 106k people, reflecting a 54% workforce growth from 2021-2023.p.2
• VCTA-backed company revenues reached £22bn in 2023, while export sales rose to £5.5bn.p.2
• Unquoted portfolio companies spent £274m on R&D in 2023 and paid £452m in PAYE and NI contributions.p.2
• A typical VCTA investee company at the point of investment has 35 employees, £2.6m in revenues, and receives £2m initial investment.p.3
• Investors receive tax benefits including 30% upfront income tax relief, tax-free dividends, and exemption from capital gains tax.p.3

Key insights

1. VCTA members hold seats as Board Members or Board Observers on over 95% of their unquoted portfolio companies.p.3
2. The workforce employed by VCTA member-backed companies grew by 54% between 2021 and 2023.p.2
3. Export sales of VCTA supported companies grew by 89% since 2021 to hit £5.5bn in 2023.p.2
4. Unquoted VCT portfolio companies contributed £274m to R&D spending in 2023.p.2
5. VCTA members deployed over £500m of capital into early-stage companies during 2023 alone.p.3
6. The UK's tech sector is currently the largest in Europe and the third largest globally.p.3
7. All VCTA member firms are signatories of the Investing In Women Code.p.4