Elsewhere, Madeleine Ingram, director at Calculus, agreed geopolitical tensions would affect fundraising, as well as high interest rates and elevated inflation which have 'created an environment where investors are increasingly risk averse and cash has seemed an attractive option".
"However, we are seeing a change in attitude as investors understand over allotment to cash could be a short-term view,' she explained.
"As EIS and VCT managers, we are investing in companies which have the potential to grow and exit at high multiples, and investors also receive attractive tax benefits such as 30 per cent income tax relief and no capital gains tax to pay on the growth."
VCTs have surged in popularity recently, with more than £1bn invested in 2022, with experts predicting this will continue as the tax burden on wealthy people rises with a number of tax thresholds frozen until 2028, including inheritance tax and income tax.
Back in November's Autumn Statement, chancellor Jeremy Hunt extended the VCT and EIS sunset clause to April 2035.
The sunset clause, which was created as part of European Union state aid rules, meant VCT relief is only available to subscribers for shares issued before April 6, 2025.
Ingram said: "The Labour party has also voiced support with shadow chancellor Rachel Reeves welcoming recommendations to continue the schemes, saying 'Labour should maintain and build on existing incentives, such as SEIS, EIS and the R&D tax credit system, to ensure investors and firms have the best possible incentives for growth'.
"Providing crucial funding for UK startups and scale ups is hugely important for the economy. It empowers entrepreneurs whilst increasing productivity, creating jobs, and boosting growth."
tara.o'connor@ft.com
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