VCT fundraising was the third highest on record, despite a drop of almost 20 per cent in 2023/24.
Data from the Association of Investment Companies showed VCTs raised £882mn in 2023/24.
This was down 18 per cent on 2022/23's total of £1.08bn while the record of £1.13bn was set in 2021/22.
Richard Stone, chief executive of the trade body, said: “The continued strong fundraising by VCTs will be a great benefit to the UK’s innovative young businesses in a challenging environment.
"Over the last three years VCTs have raised over £3bn – providing much needed support to the UK’s fast-growing companies.
“This support has an impact beyond the businesses that receive funding, delivering wider economic, social and environmental benefits as well.
"The young businesses that VCTs support create jobs, boost the development of skills and knowledge, and increase exports and tax take across many vital sectors including healthcare and technology.”
The AIC's records go back to 2010/11, when the total raised was £354mn.
Chris Lewis, chair of the VCT Association, added: "With over £3bh raised over the last three tax years, VCTs provide critical funding and support to growth companies, which have an outsize impact on innovation and job creation.
"These sustained levels of investment into VCTs demonstrate the value that is being delivered to thousands of retail investors nationwide, who in turn provide patient capital to high-potential scale-up businesses across the country.
"At a time when fundraising across the broader venture capital markets has slowed, VCTs are showing their worth and outperforming the trend.”
tara.o'connor@ft.com
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