Fuel Ventures launches £50m tech VCT after scheme extension

London-based investment firm Fuel Ventures has launched a £50m venture capital trust (VCT) to be listed on the London Stock Exchange.

The VCT has been launched with support from Titan Alternatives Ltd and will target 30 investments in high-growth tech innovation over the next three years.

The VC firm said funds from the VCT will co-invest with the existing Fuel Ventures Enterprise Investment Scheme (EIS) portfolio.

Fuel Ventures announced a £100m early-stage startup investment fund in June last year. Companies backed by the firm include Volt, Peckwater Brands and Eilla AI.

“The Fuel Ventures VCT is an important addition to our investment strategy, giving us the opportunity to back our winning companies as they scale, throughout the year,” said Mark Pearson, founding partner at Fuel Ventures.

“We have ambitious plans for the VCT to become a £100m+ fund. We are thrilled that Titan Alternatives, a long-term partner, has chosen to act as the main promoter, showing their support for this new launch.”

Nicholas Hyett, investment manager at Wealth Club, said: “It’s worth noting that new VCTs often take a couple of years to find their stride, building up a portfolio over time.

“However, Fuel will benefit from an existing portfolio of potential follow-on opportunities and a cohort of EIS and SEIS investors who should be pretty happy with their investments to date.”

The VCT launch is one of the first to follow the decision from Chancellor Jeremy Hunt to extend the scheme – which provides tax breaks for investors.

Hunt extended the scheme following popular demand from the investment community. The original ‘sunset clause’ for VCTs and the EIS was 2025. The extension pushed the deadline back to 2035.