The British Smaller Companies VCTs have launched a fundraising offer of up to £60mn as the investment vehicles seek fresh capital to support their portfolios of technology-focused smaller companies.
The offer comprises an initial £40mn raise, with a further £20mn available through an overallotment facility.
The two VCTs have combined net assets of more than £520mn and investments in about 45 companies, giving investors exposure to a portfolio concentrated on the UK’s smaller technology businesses.
The funds focus primarily on technology companies, with particular exposure to data, application software, technology-enabled services and new media.
The fundraising comes after the VCTs recorded positive total returns over the five years to June 30 2026.
British Smaller Companies VCT generated a net asset value total return, including dividends, of 25.8 per cent over the period, while British Smaller Companies VCT 2 returned 20.9 per cent.
The VCTs do not specify a target dividend, with distributions instead determined by the performance and financial position of the portfolios.
The latest offer provides the funds with additional capital to deploy across their existing investment strategy, targeting smaller companies operating in technology-led markets where the managers see potential for long-term growth.
With more than £520mn of combined net assets and a portfolio of approximately 45 businesses, the VCTs remain focused on providing investors with diversified exposure to smaller UK technology companies through the tax-advantaged venture capital trust structure.
The fundraising will increase the capital available to the managers as they seek new investment opportunities while continuing to support existing portfolio companies.
Jonathan Moyes, Head of Investment Research at Wealth Club said: “Whilst there might be several mighty oaks forming in the portfolio, the British Smaller Companies VCTs start out by looking for promising acorns. The team seeks to back businesses that are typically generating revenues of more than £1 million. Initially, it will invest between £2 and £6 million to unlock the next phase of growth. In addition, the VCTs are well known for following their money, investors can expect the VCTs to make follow-on investments into companies that show promise.
Historically, the manager has done a good job of backing businesses that can make the jump from startup to potential world-beater.
Despite the name, many of the VCTs’ holdings can no longer be considered small. Notable recent successes in the portfolio include Xapien, an AI-powered due diligence platform. In September 2026, it raised $56 million in a round led by a growth-focused US private equity firm after growing revenues by 350% in the prior two years. Summize is another, the AI contract intelligence platform raised $50 million in early 2026 after doubling revenue in the prior 12 months. Others include Matillion (largest holding), the data analytics platform and Unbiased, the financial adviser directory.
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