Investing in early-stage companies is a risky but potentially profitable business, especially given the tax breaks. Venture-capital trusts are one way to invest in these companies.
A recent example of a successful investment is Beauty Tech Group, which debuted on the stock exchange earlier this month with a £300 million listing. Three venture-capital trusts run by Mercia Fund Management were among the first investors to recognize Beauty Tech's potential, taking stakes in the company in 2018.
These companies follow in the footsteps of other VCT success stories.
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Author's summary: Investing in venture-capital trusts can be profitable.