In current economic conditions, securing funding for startups is extremely challenging. However, Venture Capital Trusts (VCTs) have emerged as a resilient pillar of support. The year 2022 saw an 8% increase in investments by VCTs, even as wider venture capital funding faced a 23% drop during the same period. These statistics, drawn from research by the Venture Capital Trust Association, underline the importance of VCTs in driving growth and innovation.
Howard Kennedy, the UK's leading VCT law firm and FCA sponsor, has been at the forefront of this movement. The firm's expertise has played a pivotal role in empowering startups to connect with VCTs for funding opportunities. A shining example of this success is Praetura Ventures, an innovative force supporting founders since 2011. Praetura Ventures, advised by Howard Kennedy, launched a new VCT in June focused on supporting startups in the north of England, providing much needed support for regional startup growth.
Our startup program, Howard Kennedy Ignite, has proven to be a game-changer for founders aiming to secure VCT investments. Howard Kennedy Ignite acts as a bridge between startups and venture capital trusts, connecting founders to potential investors who are aligned with their vision. With a deep understanding of the intricacies of VCT funding, Howard Kennedy Ignite provides a valuable avenue for founders to explore, navigate, and tap into the realm of venture capital.
The significance of VCT support extends beyond merely financial investment, with many VCTs also offering strategy and governance support. The data reveals that companies that received investment from VCTs witnessed a remarkable 54% growth in sales compared to the previous year. Furthermore, export sales for these companies surged to £3.7 billion in 2022, up from £2.9 billion in 2021. These numbers highlight the transformative impact that VCTs can have on startups, propelling them toward increased revenue and global recognition.
Will Fraser-Allen, the chair of the Venture Capital Trust Association, aptly captures the essence of VCTs' role in the UK economy. "The UK Economy (UK PLC) is increasingly in need of innovative young businesses to push the economy forwards and help to drive growth by investing in new technologies such as artificial intelligence," he states. In line with this vision, Howard Kennedy's Ignite program becomes an essential conduit for startups to access the funding necessary for turning their groundbreaking ideas into reality.
As the economic landscape continues to present challenges, VCTs stand as beacons of hope for startups. The launch of new VCTs, like Praetura Ventures' initiative, reaffirms the enduring potential of startups to fuel growth and innovation across regions. With Howard Kennedy Ignite paving the way, startup founders across the UK can navigate the complex world of venture capital trusts with confidence, knowing they have a reliable partner to guide them toward success.
In a world where innovation drives progress, VCTs provide the necessary fuel to turn vision into reality. Howard Kennedy Ignite empowers startup founders to unlock the doors to VCT funding, propelling their ideas from conception to market disruption. As the VCT landscape continues to evolve, Howard Kennedy remains committed to championing startups, driving growth, and shaping a brighter future for the UK's entrepreneurial ecosystem. We encourage all founders to speak to us as early as possible about raising funds for your business.
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