Blackfinch Ventures, the venture capital arm of Blackfinch Group, has announced its intention to declare its first dividend payment from the Blackfinch Spring Venture Capital Trust (VCT) in April 2024. This follows the completion of a £1.3m round of investments made in December 2023, aligning with the national agenda to boost technological innovation. The VCT's CEO, Richard Cook, expressed pride in the contribution Blackfinch is making to the UK economy through its investment and support to VCT investee companies, highlighting the strong portfolio of high-growth firms.
The VCT's exceptional performance is underscored by data from the alternative investment platform Wealth Club, which shows that Blackfinch Ventures has the most exposure to high-growth companies by annual revenue growth in UK VCTs. Dr. Reuben Wilcock, Head of Ventures at Blackfinch, emphasized their investment strategy's alignment with the UK's drive to nurture a dynamic early-stage tech ecosystem, focusing on identifying and supporting early-stage businesses with innovative technology and sustainable, scalable growth.
The recent round of investments provided follow-on funding to two existing VCT portfolio companies and an investment into a new portfolio company, Quin, which uses deep-learning of anonymized website traffic to predict user behaviors and serve relevant in-the-moment experiences. Another notable startup in the Blackfinch Spring VCT portfolio is Tended, whose wearable devices are designed to increase safety in high-risk work environments like the rail industry.
Blackfinch Ventures' investment strategy resonates with the UK government's recent reforms aimed at bolstering the technology and science sectors, including the £250 million Long-Term Investment for Technology and Science (LIFTS) program. Dr. Wilcock highlighted the broader impact of their investments, emphasizing the vital role VCTs play in the UK's economic fabric by supplying vital capital to emerging companies, contributing to job creation and wider economic development.
The announcement of the VCT's intention to make its first dividend payment is seen as a game-changer for those seeking income-paying VCTs, providing advisers with a strong reason to consider them within the holistic review of client investment objectives. This news showcases the strength of the UK tech sector and Blackfinch Ventures' commitment to propelling the UK's economic potential and promoting a culture of technological advancement and innovation.