Titan 5 VCT aims to provide exposure to range of 20 to 30 unquoted UK companies. The size of each investment will typically be£200,000 to £2m and will be selected after initial screening and due diligence.
Octopus will identify unquoted companies that are profitable because they can deliver products and services to significant numbers of new customers at a low cost, with the ability to generate repeat sales. The ability to expand into related areas using existing relationships with customers and distributors, product development and a strong band is also important.
The VCT can invest in a range of sectors, but will focus on the environment, technology, media, telecommunications, consumer lifestyle and wellbeing. Octopus believes that there will be ample opportunities as the economy comes out of recession. It says that many sources of funding are closed to smaller high growth companies but Octopus Titan can offer support and guidance to firms as they grow, as well as finance.
Titan 5 will draw on Octopus Venture Partners, a network of more than 100 entrepreneurs and business people, who can co-invest their own money alongside the Octopus Titan VCTs. the partners provide support and guidance to the firms in the portfolio, which Octopus sees as a strong competitive edge over other VCTs.
Investors who are looking for a VCT may opt for Octopus due to its experience and track record. However, it could face competition from other generalist VCTs, such as the long-running Northern venture trust. This can make bigger investments than new VCTs because it was established before 2006.
