Neil Woodford: VCTs Undermine Small Business Sector

As Neil Woodford launches his new Income fund, which will have a proportion invested in unlisted companies, he laments the destructive nature of Venture Capital funds

Emma Wall 16 May, 2014 | 9:22AM
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Venture Capital funds are bad for small businesses, doing more harm than help to the start-up sector, according to veteran UK equity manager Neil Woodford.

“The UK is unsurpassed in terms of innovation,” said Woodford. “We have some of the best universities in the world and a tremendous record in innovation – but we do not covert this into great businesses.

“The venture capital investment structure is too short-termist and too focussed on the end result for the investor rather than the business they are investing in. Venture capital funds should be helping these inventors and developing their ambition.”

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
AstraZeneca PLC8,231.00 GBP0.00Rating
Invesco UK Eq High Inc UK Inc317.26 GBP-0.88Rating
Invesco UK Equity Inc UK Inc1,258.16 GBP-0.90Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar