Enterprise venture capital trust has announced a new subscription of A shares for its venture capital trust.
The venture capital trust will invest 80 per cent in unquoted companies in the UK and those listed on the Alternative Investment Market (AIM). It will also invest 20 per cent in fixed interest securities.
The main focus is on new technology, with a special emphasis on healthcare and computer software. These areas are likely to provide good opportunities for growth as they are flavour at the month at the moment.
Investing in unquoted and AIM listed companies is also risky, but the Enterprise venture capital trust will only consider companies that have experienced management teams, proven products and well-researched markets for those products.
High net worth clients, such as technology entrepreneurs, would find this venture capital trust of interest. They would need to be fully aware of the risks associated of investing in unquoted or AIM listed technology companies.
It will have limited appeal to the general public, even if they would find the tax advantages of a venture capital trust useful. The collapse of many dotcom companies earlier this year has made some investors wary of the sector and they look unlikely to change there minds just yet.
According to Standard & Poor's the Enterprise venture capital trust is ranked 4 out of 24 trusts based on £1,000 invested on a mid-to-mid basis with gross income reinvested over three years to November 13, 2000.