Gloucester-based investment company Blackfinch Group has announced that it has raised more than £3.3 million through its ts Blackfinch Spring VCT to invest in a portfolio of technology and technology-enabled companies.
The Spring VCT, launched in December, has been a natural follow-on funder for the Blackfinch Ventures EIS Portfolios, which invests in technology-focused companies at the start of their growth journey.
This successful fund raise comes at a time when the VCT market is under pressure, with evidence that investment in these funds is down 50 to 70 per cent on previous years and some VCTs may struggle to achieve their sustainable raise requirement.
Investors in the Blackfinch Spring VCT have included financial advisors and their retail clients and investors using direct-to-client platforms. The average size of investment is currently £26,000 and there have been 131 investors so far.
Blackfinch Ventures targets high-growth opportunities, supporting start-ups, early stage and growth stage businesses with technological potential. The focus is on disruptive businesses, offering products that address real world needs, with the capability to make an impact in global markets. Blackfinch EIS portfolio clients that could be selected for Spring VCT investment include equestrian security device company Tended, renting app Movebubble and outdoor fitness app Auro.
Richard Cook, Founder and CEO of Blackfinch Group, said: “The Spring VCT forms part of Blackfinch’s evolving suite of solutions and I’m delighted that has had a successful fund raise so far; we expect this to continue through these unsettled times as investors looks to the long term. There is still a small window of opportunity to invest before the end of this tax year, up till 3 April, and we’ll keep the VCT open until 30 October.”
Dr Reuben Wilcock, Ventures Director at Blackfinch, added: “It’s encouraging to see that investors have recognised the opportunity presented by the Blackfinch Spring VCT to diversify their portfolios, investing in the technology sector. The VCT is targeting dividends of 5% p.a. by 2024; additional benefits will include special dividends through earlier exits and those that exceed projected performance and venture capital tax relief.”