Venture capital trusts backing UK tech: new research

Investment by venture capital trust (VCTs) has overwhelmingly gone into nascent UK tech companies over the past three years, according to new research by early-stage investment specialist SyndicateRoom.

In total, VCTs invested £535 million in growth companies over the past three years in funding rounds where a total £1.78 billion was raised. The top sector, by both value and number of deals, was software, including software as a service (SaaS). There were 83 deals (including both new investments and follow-ons) by VCTs in this sector in the past three years¹ with a combined £122 million invested. The total raised in these deals, including the VCT money, was £289 million.

Richard Stone, Chief Executive of the Association of Investment Companies (AIC)

All of the top five sectors for VCT investment are technology focused. After software, VCTs have invested most money in fintech, cybersecurity, deeptech and AI (see table below).

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: "This data shows the crucial role of VCTs in driving UK growth. Every £1 invested by VCTs unlocked an additional £2.33 in funding from other sources - resulting in nearly £1.8 billion invested in growth companies over the past three years.

"VCTs are now predominantly tech investors, backing the most ambitious British companies in sectors from AI to advanced manufacturing and helping the government deliver its industrial strategy. They invest at an early stage of a company's development, and VCT funding is often the catalyst to help those companies expand, create new jobs, or compete internationally. This is proper risk capital - and it's vital that VCTs are able to continue this work if we want to see more UK tech success stories in future."

VCTs must invest in companies with no more than £30 million of gross assets (or £35 million immediately following investment). Generally, investee companies must be no more than seven years old (dating from their first commercial sale) and have fewer than 250 staff.

Examples of VCT investee companies, with comments from VCT managers, can be found below the table.

Top sectors for VCT investment over the past three years

^{Source: SyndicateRoom. See notes to editors.}

Quantexa: an AI unicorn based in the UK

Will Fraser-Allen, Managing Partner at AlbionVC, manager of the Albion VCTs, said: "When the Albion VCTs led Quantexa's first funding round in 2017, alongside HSBC, it was a one-year-old company with an unproven idea - using AI to turn fragmented enterprise data into better decisions. Nine years and successive rounds later, it is a UK AI unicorn with more than $100 million in annual recurring revenue, a $2.6 billion valuation, customers including HSBC, BNY and Standard Chartered, and a £175 million, ten-year partnership with HMRC to build a sovereign decision intelligence system, one of the largest AI deployments in the UK public sector.

"That early cheque helped unlock hundreds of millions in later funding from global investors. That is what VCT capital does, it goes in first, when the risk is highest, and builds British companies that lead their category worldwide."

Resurrect Bio: unlocking gene editing to solve agriculture's $220bn disease problem

Elizabeth Klein-Edmonds, Investment Director at Calculus, manager of the Calculus VCT, said: "Resurrect Bio is tackling one of agriculture's oldest problems with cutting-edge AI and genetics. The Food and Agriculture Organization estimates that 20-40% of global crop production, worth around $220 billion a year, is lost to plant disease and pests. Resurrect's proprietary platform uses computational biology, AI, and wet-lab functional biology to identify and 'resurrect' natural disease-resistance genes already present in crops, restoring immunity that pathogens have learned to evade.

"Resurrect doesn't do the gene editing itself, it identifies the target, and hands seed companies a 'template' for their own editing tools to implement. As the approach edits a crop's existing genetics rather than introducing foreign DNA, the crops are not classified as genetically modified. With a joint development agreement already in place with global agriculture leader Corteva on corn traits, Resurrect has real potential to become a category-defining platform for sustainable crop protection. Calculus VCT backed the company as part of an oversubscribed $10.3m Series A, helping it scale its platform and pursue further deals with major seed companies."

Chalkie: freeing up teachers' time using AI

Seb Wallace, Co-Founder of Triple Point Ventures, manager of the Triple Point Venture VCT, said: "Chalkie is tackling one of education's most persistent challenges: the pressure on teachers' time. Its AI-powered platform creates editable, curriculum-aligned teaching packs, including slides, images and differentiated worksheets, helping teachers spend less time on planning and administration and more time with pupils.

"The scale of the opportunity is compelling. The UK edtech market was worth £5.4 billion in 2023 and is forecast to grow more than fivefold by 2035, while almost half of teachers already use AI in their work.

"Through the VCT's recent investment, we are backing an experienced founding team to develop and scale a product with clear day-to-day utility. That support can help Chalkie reach more schools, deepen adoption and deliver meaningful impact for teachers and learners, without seeking to replace the vital role teachers play."

Spaceflux: surveillance in space

Andrew Bloxam, Partner at Foresight, manager of the Foresight VCTs, said: "Spaceflux is developing advanced space domain awareness technology, helping governments and commercial operators track and monitor objects in Earth's increasingly congested orbit. As the global space economy grows, demand for accurate, independent space monitoring continues to increase.

"We first backed Spaceflux at an early stage, providing growth capital as the business began commercialising its technology and scaling operations. That support has helped the business invest in its capabilities, expand its sensor network and accelerate its route to market. Since investment, Spaceflux has secured major contracts and partnerships in the UK and internationally, demonstrating strong demand for its technology and validating its market position.

"VCT backing has provided the capital needed to accelerate growth, support the company's ambition to build a globally significant business from the UK, create highly skilled jobs and strengthen Britain's position in this strategically important sector."

CreativeX: helping big brands and expanding internationally

Emma Biasiolo, Investment Director at Beringea, manager of the ProVen VCTs, said: "CreativeX is a business we've loved being part of since we first invested in 2020. Anastasia Leng and her team spotted early on that, as brands create more and more content across different channels and markets, they need a much better way of knowing what actually works. CreativeX helps them do exactly that, using data and AI to improve creative content at scale.

"Since we first invested, the business has grown its annual recurring revenue around 20-fold and now works with some of the world's biggest brands, including Nestlé, Bayer and Mars. We've backed the team as they've developed the technology and grown internationally, and there's still a huge opportunity ahead. AI is changing how quickly and how much content can be created, which makes CreativeX's technology more relevant than ever."

Aveni: using AI to improve customer service

Ben Leslie, Investment Director at Puma Growth Partners, manager of Puma VCT 13 and Puma Alpha VCT, said: "Aveni is a powerful example of the kind of ambitious UK technology business that VCT investment can help to scale. Based in Edinburgh, it has developed specialist AI technology for financial services, with its solutions used by leading banks, wealth managers and IFAs. As AI adoption accelerates, financial institutions face an increasingly important challenge: ensuring that both human and AI-led customer interactions deliver consistently good outcomes.

"Aveni has the expertise, technology and market position to become a category leader in solving that challenge. Since our original £5.9 million investment in 2024 through our VCTs, the company has delivered triple-digit revenue growth each year. Our participation in its recent £12 million funding round is helping the business build on that momentum by developing its Unified Assurance Platform, launching new products and accelerating its growth. We are extremely proud to be part of its journey."

Minimal: making electric delivery bikes for Royal Mail

Nic Pillow, Ventures Director at Blackfinch Ventures, manager of the Blackfinch Spring VCT, said: "Minimal is developing lightweight electric delivery vehicles and intelligent fleet software for urban logistics. From cargo bikes to automated urban transport, its ambition is to create the vehicles and intelligence that could transform how goods move through cities worldwide. Its first four-wheeled cargo bike, Pedal 4, has already attracted strong commercial interest, while Minimal is designing two-wheeled pedal vehicles and delivery bots as it seeks to build a much broader urban logistics business. Manufacturing is deliberately local, with every vehicle to date built in London.

"That ambition is increasingly backed by commercial traction. Minimal has now delivered the first electric cargo cycles ever purchased by Royal Mail - an important endorsement from one of the UK's most demanding delivery networks. Our VCT investment is helping Minimal scale production, strengthen its software and build the commercial foundations needed to turn an ambitious product roadmap into a major international urban logistics business."

Xapien: a British AI company with global ambition

Jamie Roberts, Managing Partner of YFM Equity Partners, manager of the British Smaller Companies VCTs (BSC VCTs), said: "Xapien is an AI-native platform that automates due diligence and counterparty risk assessment, replacing today's slow, manual checks with fully sourced, auditable reports produced in minutes. Its ambition is to become the new global standard for how organisations manage third-party risk.

"Annual recurring revenue has grown more than 350% in the last 24 months and the business plans to continue doubling revenue each year. Its client base already spans 350 organisations, including Dow Jones, Freshfields and KPMG, across 15 countries. The British Smaller Companies VCTs were the first institutional investor in Xapien, making their initial investment in 2023. In September 2026, the BSC VCTs announced their fourth investment into the business, as part of a $56 million Series B funding round alongside Spectrum Equity, a US growth equity firm. The BSC VCTs' total investment in Xapien is now £14.7 million. Xapien is a great example of a UK success story where VCT support has helped a company to scale into an international business, create jobs and contribute to the wider UK economy."

Patchworks: a UK tech company expanding into the US

Marieke Christmann, Portfolio Partner of the Baronsmead VCTs, said: "Patchworks is a great example of what the Baronsmead VCTs back. Founded in 2014, Patchworks helps e-commerce and retail businesses connect and automate data across core systems, cutting the cost and complexity of stitching together shopfront, ERP, CRM and warehouse software. Customers include Gymshark, Lounge Underwear and Huel. The global market for this kind of integration software is forecast to grow from around $13 billion today to over $55 billion by 2033, according to Grand View Research. Since our first investment in 2021, the Baronsmead VCTs have made four follow-on investments, most recently a £5 million round in 2025, helping Patchworks deliver 36% revenue growth and expand into the US. It's a strong example of UK tech scaling globally."

Summize: helping legal teams manage contracts

Jeremy Thompson, Partner at Maven Capital Partners, manager of the Maven VCTs, said: "Summize is a great example of the type of ambitious UK technology business that VCT investment can help scale. Its software makes the contracting process quicker and more efficient, helping in-house legal teams manage contracts through the tools they already use every day. Since the Maven VCTs first invested in 2022, Summize has grown rapidly, expanded into the US and developed into a genuinely international software-as-a-service business. The VCT investment has supported both the continued development of its technology and its expansion into North America, including establishing a presence in Boston. The opportunity ahead remains significant. Summize has delivered more than 100% annual ARR growth for five consecutive years and is addressing a large global market as businesses increasingly look to technology and AI to make legal services more efficient and accessible."

Qureight: helping pharmaceutical companies develop new treatments

Anna Salim, Portfolio Manager at Canaccord Asset Management, manager of the Hargreave Hale AIM VCT, said: "Cambridge-based Qureight is an AI-powered imaging clinical research organisation (CRO) delivering enterprise-grade imaging for the clinical trials industry. Its proprietary deep learning biomarkers give pharmaceutical companies the tools to measure disease progression with a precision and reproducibility that conventional imaging analysis cannot match, accelerating the development of new treatments.

"Qureight is a brilliant showcase of a UK-built AI platform driving critical insights in drug development. As it builds out its foundation model, we believe the compounding effect of that infrastructure advantage will be significant. We are proud to have supported the company through its Series A and Series B funding rounds as it expands into new disease areas with significant unmet need."

Astral Systems: fusion technology solving future problems

Lee Lindley, Investment Manager and Investor at Mercia Ventures, which manages the Northern VCTs, said: "Mercia's Northern VCTs recently led a £23 million investment round into Astral Systems who have developed a novel nuclear fusion technology that can be used for manufacturing medical isotopes.

"The investment is to help the company further develop and scale the technology, with the intent ultimately to deliver supply of short half-life medical isotopes such as Copper-64/47, Actinium-225 and Lead-212. We believe Astral can manufacture these isotopes more cheaply than competing approaches and can be deployed close to or at therapeutic sites, which is advantageous when isotopes have a short half-life. More urgently, there is a shortage of these isotopes across the UK, Europe and North America, with a large proportion of current fission reactors approaching end of life.

"The ambition is for Astral to exit in 2030, with a valuation in the range of that recently secured by other similar companies, such as Lantheus (c. $7 billion), Philochem ($1.4 billion) and Fusion Pharma ($2.5 billion)."

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Notes to editors

1. Source: SyndicateRoom. Three years to 21/07/26. Most recent deals may not be included due to reporting lags.
2. SyndicateRoom is a Cambridge-based, FCA-regulated early-stage investment specialist that has invested over £84 million in more than 380 UK startups since 2013. Its EIS funds are built on its own comprehensive parsing and analysis of Companies House filings. The resulting dataset is the source for the research featured in this press release, as well as for SyndicateRoom's quarterly market reports and white papers.