The past twelve months have been a period of economic recovery for the UK, marked by stabilising inflation and interest rates. As a result, we have seen a return to stability for many of the companies that we back, and a resurgence in the numbers of business seeking growth funding. This year also saw significant political change, with the Labour Party forming a new government, bringing renewed support for venture capital and innovation.

At ProVen, we are pleased to share some of the key achievements and milestones across our VCTs and the ProVen Estate Planning Service (PEPS). Below, we round up the highlights of 2024.

Extension of the sunset clause

Following the general election in July, the Labour Government reaffirmed its commitment to supporting VCTs. In September 2024, the Treasury extended the sunset clause for the VCT and EIS schemes from 5 April 2025 to 5 April 2035.

This extension provides long-term stability for investors, allowing them to continue claiming relief under these schemes for the next decade. It also ensures that VCTs remain a critical vehicle for backing high-growth UK companies, driving job creation, and contributing to the broader economy.

Strong performance in the Tax Efficient Review

The ProVen Estate Planning Service (PEPS) received a high score of 87 out of 100 in the latest Tax Efficient Review (TER), published in January 2024. 

The TER is an independent research service for financial advisers that analyses the performance, strengths and weaknesses of investment providers.

The review praised PEPS for its two solar strategies, which topped the performance league table, as well as for delivering a blended return across its two strategies that sits at the higher end of the target return.

Inheritance tax changes

While the Autumn Budget reiterated support for VCT tax reliefs, several significant changes were announced regarding inheritance tax (IHT) and business relief (BR):

• Threshold extension: the current nil-rate band and residential nil-rate band thresholds will remain frozen until April 2030 (previously set to end in April 2028).
• IHT on pensions: from April 2027, unspent pension pots will fall within the scope of inheritance tax.
• New residence-based system: effective from 6 April 2025, a residence-based inheritance tax system will replace existing rules, ending the use of offshore trusts to shield assets from inheritance tax.
• Reforms to property tax: from April 2026, agricultural property relief and business property relief will be capped: 100% relief applies to the first £1 million of combined agricultural and business assets; 50% relief applies to any amount exceeding this threshold. Additionally, business property relief for shares not designated as listed (e.g., AIM shares) will be reduced to 50% in all cases.

These changes, coupled with rising property prices, are expected to significantly increase IHT receipts for HMRC. As a result, demand for estate planning services such as PEPS could increase, offering investors an opportunity to potentially mitigate their IHT liabilities.

Engaging new video content

Throughout 2024, we produced a series of insightful video interviews to highlight the innovation, growth, and expertise behind the ProVen VCTs and PEPS.

ProVen VCTs

We spoke to inspiring leaders from the ProVen VCT portfolio, offering a closer look at their journeys and businesses:

• Vidhya Ramalingam, founder and CEO of Moonshot, shared an insight into the fight against online harms, and the vital role Moonshot’s technology plays within it.
• David Martell, founder and CEO of Andersen EV, sat down with Harry Thomas of Beringea to discuss his track record of success and the growth opportunity in his latest venture.
• Jonathan Recanati, founder and CEO of Farmer J, delved into the rapid growth of one of London’s most popular restaurant chains, and what he has planned for the future of the business. 

You can watch these interviews, as well as conversations with Jack Scott (DASH Water) and Aaron Georgiou (LITTA) from last year, on our website here.

PEPS

We also sat down with key figures from PEPS to provide a deeper understanding of its investment strategies. 

Andrew Webster, Investment Director at Beringea, and Chris Carlson, Investment Director at Armstrong Capital – the specialist renewable energy asset manager that Beringea partners with to deliver the service – discussed: 

• The distinct solar and lending strategies driving PEPS.
• The unique features and approaches that set these strategies apart.

Watch the full interviews here. 

30 years of venture capital trusts

On 29 November 2024, we celebrated 30 years since then-Chancellor Ken Clarke introduced Venture Capital Trusts in 1994.

VCTs have become a cornerstone of the UK investment ecosystem, providing essential support to innovative businesses, creating jobs, and mobilising patient capital. To highlight the scale of the VCT industry:

• Since 2016, the Venture Capital Trust Association (VCTA) members have invested £3.6bn into growth businesses.
• VCT-backed businesses currently employ over 106,000 people.
• VCTs currently  manage more than £6.5bn in assets.

At ProVen VCTs - managed by Beringea and as a proud member of the Venture Capital Trust Association (VCTA) - we are proud to reflect on the scheme's profound impact. You can read Beringea Managing Partner Stuart Veale’s reflections on the significance of VCTs on LinkedIn here. 

ProVen VCTs’ fundraising success

ProVen VCT and ProVen Growth and Income VCT launched two combined offers for subscription in 2024. In January, the two funds launched an offer for subscription for the tax years 2023-24 and 2024-25, seeking to raise up to £15m each, with an over-allotment facility of up to £5m each. The offer closed at the end of September following strong investor interest. 

In November, the ProVen VCTs launched a new offer for subscription for the tax years 2024-25 and 2025-26. Each fund is seeking to raise up to £15m, with the potential of an over-allotment facility that would allow a further £5m to be raised per VCT. Full details of the new offer, along with the relevant documents, are available on the ProVen website here. 

2024 was a year of action for our VCTs, not only raising new funds but deploying them to support innovative, high-growth businesses. Among the exciting new companies we backed were:

• Farmer J, a fast-casual restaurant chain delivering healthy meals, which received £5.5m in growth funding to fuel its expansion.
• Andersen EV, a provider of premium electric vehicle home charging solutions, supported with a £4m Series A investment.
• Iceberg Data Lab, a climate data solutions provider for financial institutions, which secured a $10m Series A investment.

Our funds also continued to back existing portfolio companies, providing support to drive their ongoing success. Highlights include:

• Gorilla, a data platform for energy and utilities, where we participated in its £20m Series B round.
• MOTH Drinks, the UK’s leading ready-to-drink cocktail brand, which received a £4.6m Series A investment to support its growth.

Important notice: issued by Beringea LLP of Charter House, 55 Drury Lane, London, England WC2B 5SQ, registered in England & Wales number OC342919 and authorised and regulated by the Financial Conduct Authority, number 496358. This material is for information only and does not constitute an offer to buy or sell an investment nor does it solicit any such invitation. The information contained in this letter is believed to be accurate at the date of publication but no representation or warranty stated or implied is made or given by any person as to its accuracy or completeness and no responsibility or liability is accepted for any such information or opinion.