Are Venture-Capital Trusts Worth Investing In?
Investing in early-stage companies is a risky but potentially profitable business, especially given the tax breaks. Venture-capital trusts are one way to invest in these companies.
A recent example of a successful investment is Beauty Tech Group, which debuted on the stock exchange earlier this month with a £300 million listing. This was a big win for venture-capital trusts, with three VCTs run by Mercia Fund Management among the first investors to recognize Beauty Tech's potential.
- Beauty Tech had annual sales of less than £1 million and was still losing money in 2018 when the VCTs invested.
- Other successful VCT investments include Zoopla, Gousto, and Virgin Wines.
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Author's summary: Venture-capital trusts can be a profitable investment option.