Around £200m has been raised this year compared with £270m in the 2006/07 season.
Many commentators had anticipated sales of £100m to £150m after just £72m had been invested four weeks ago.
Half of all investments went into limited life VCTs, with 40 per cent in generalist and 10 per cent in Aim/specialist VCTs.
Downing Corporate Finance director Tony McGing says: “Given the volatile equity markets at present, VCT investing has been quite positive this season and we were very pleased with the £17m we received for our Downing protected VCT.”
Hargreaves Lansdown investment manager Ben Yearsley says: “The 25 per cent fall was expected, given market turbulence. It is a shame as it is a good time to invest and those that have taken enough money will take advantage of opportunities in the market. The 10 per cent in Aim and specialist stocks is particularly surprising, given the new VCT rules.”