Long-term investment key to venture capital sector

If a week is a long time in politics, then the past year has been a lifetime in the world of venture capital trusts. In January 2001, the prospects for the sector looked good, with fund performance generally on an upward trend and the climate for raising new funds verging on the tropical. Almost £200m of new money flowed into the industry from private investors over the nine months from April to December 2000, and during the same period the FTSE Small Cap Index reached its all-time high. The 2000/2001 tax year was to see a record total of well over £400m raised by VCTs. Twelv...