HISTORIC PRESS RELEASE : Venture Capital Trust – A Success Story [September 1997]

The press release issued by HM Treasury on 11 September 1997.

The success of the Venture Capital Trust scheme was praised today by Geoffrey Robinson, Paymaster General, in a speech to a Venture Capital seminar in London. He stressed that the Government was keen to work together with VCTs to develop the scheme and make it even better.

He said:

“The Government has made it abundantly clear that it wishes to see an increase in productive investment in industry. I want to congratulate you all on the way you have responded to the Venture Capital Trust scheme. Eighteen VCTs have raised over 360 million Pounds in the first two years of the scheme. Over 50% of funds have been invested in industrial products and services, including some high-tech companies. Over 60% of funds have gone into early stage and expansion investments. This is a good start.

I am sure you will play your part in sharpening the focus of the scheme. We would like to see a concentration of your investment effort on the businesses that are going to help the economy grow. That means identifying sectors of the economy with exceptional growth potential and where small firms can move in and succeed more quickly than larger firms.

This is, of course, only one element in a much wider picture. The Government is committed to the development of a dynamic and successful  economy. But if it is to play its part effectively it needs to be open to ideas from the private sector and particular from those who are at the cutting edge of entrepreneurship and enterprise finance. We have established an Enterprise and Growth Unit in the Treasury, not least to act as a channel for such ideas and to ensure that the Treasury itself is part of the productive partnership we want to develop between the public and private sectors.”