A venture capital trust (VCT) that will invest exclusively in businesses run by ex-military entrepreneurs is seeking to raise £20 million.
Called the TIME:REBOOT VCT, it is managed by TIME Investments with investment advice from Reboot Ventures. It is targeting growth in excess of 70% over the first five years, including the initial 30% income tax relief from the VCT structure.
‘We estimate that there are over two million veterans in the UK of working age, resulting in many potential qualifying investee companies,’ said Stuart Nicol, who will manage the fund. ‘Ex-military entrepreneurs have a number of qualities that make them stand out in the business world. These include resilience under pressure, determination, discipline and adaptability.’
As examples of successful firms started by veterans, he cited Mergermarket, Trailfinders and Go Ape in the UK, and FedEx, Digital Equipment Corporation, Walmart and Enterprise Rental in the US.
At least 50% of the fund will invest in established profitable companies, with the remaining half used to back those with ‘compelling evidence to indicate significant future growth, with the potential for recurring profits within three years’.