Not all VCTs are the same and there are three main types of VCTs:
Generalist VCTs: These are the most common types of VCTs which invest in a wide range of companies across different sectors. The aim is to diversify the portfolio and spread the risk across industries.
AIM VCTs: These focus on investing into companies listed on the Alternative Investment Market (AIM). AIM companies tend to be slightly more established than unlisted startups but still carry significant growth potential—and risks.
Specialist VCTs: These invest in a specific sector, such as biotech or renewable energy. Specialist VCTs are often higher risk due to the lack of diversification, but they can offer higher rewards if the sector performs well.