Albion Venture Capital Trusts have officially closed their £90 million top-up offer, fully subscribed and oversubscribed, as investors rush to back the next wave of British innovation. The fresh capital will pour into high-growth companies across deeptech, healthcare, and B2B software, sectors where the UK is building a global lead.
What Albion’s £90M Top-Up Offer Means for UK Startups
The offers opened on 3 November 2025 and have all now been fully subscribed and closed to further applications.1 A total of £90 million was raised across all participating Albion VCTs.2
Three trusts took part in the raise: Albion Crown VCT, Albion Enterprise VCT, and Albion Technology & General VCT. Each VCT reached its £30 million limit, including the £10 million over-allotment facility which was exercised by the board.2
The raise exceeded the initial £60 million target, triggering the £30 million overallotment facility in December 2025 due to strong demand.3 That level of investor appetite speaks volumes about the confidence in Albion’s track record and strategy.
The allotment for valid applications is expected to take place on 27 March 2026 for the 2025/2026 tax year.1 Shares are expected to be admitted to trading on the London Stock Exchange shortly after.
Albion VCT £90 million fundraise UK deeptech healthcare startups
Strong Portfolio Momentum Over Five Years
This is not a one-off success story for Albion. Over the past five years, the Albion VCTs have raised more than £405 million. That is a steady flow of capital going directly into the hands of ambitious British founders.
Over the last three years, 64% of Albion’s portfolio companies have advanced from the growth stage to the scaleup stage.3 That transition is where real value gets created, and where many venture funds struggle.
Albion’s key strengths include a 30-year track record with more than 100 exits, including Booking.com.3
Here is a quick look at Albion’s recent performance:
| Metric | Detail |
|---|---|
| Capital raised (5 years) | Over £405 million |
| Portfolio companies advancing to scaleup | 64% in 3 years |
| Average annual return (5 years, pre-tax relief) | 6.5% |
| Average annual return (10 years, pre-tax relief) | 6.9% |
| Target annual NAV dividend | 5% |
| Total exits (since 1996) | 100+ |
They target a 5% annual NAV dividend and have delivered 6.5% average per year over five years and 6.9% over ten years, before tax relief.3 Those numbers tell a story of steady, patient capital doing exactly what it is supposed to do.
Where Will the £90M Go? Deeptech, Healthcare, and AI
Funds will focus on deeptech, healthcare, and B2B software companies, building on recent portfolio successes such as Quantexa, Oviva, and tem.4
The standout names in Albion’s portfolio show why investors keep coming back.
Quantexa is a global AI and data analytics firm that recently completed a major milestone. The UK AI leader reached a $2.6 billion valuation5 after achieving Centaur status, surpassing $100 million in annual recurring revenue.5 Albion Capital Group first invested in Quantexa back in May 2017 during its Series A round.6 That early bet has paid off in spectacular fashion.
Oviva, Europe’s leading digital health company for weight management, closed a landmark raise of its own. Oviva raised $200 million in a Series D funding round led by Kinnevik.7 The company has supported more than one million patients across Europe, tripled new patient intake over the past two years, and achieved cash-flow profitability in 2025.8
tem, an AI-powered energy infrastructure company backed by Albion from inception, is another highlight. Built on deep technical expertise, tem now facilitates energy transactions at terawatt-hour scale for thousands of UK customers.4
Recent growth rounds for deeptech innovator Gravity and fintech platform TransFICC further strengthen the pipeline. Albion now manages £1.1 billion in assets, has backed over 200 companies with more than 100 profitable exits, and counts 4 unicorns in its portfolio.9
Why VCT Demand Is Surging Across the UK
Albion is not alone in seeing record demand. VCTs raised £895 million in the 2024/25 tax year, making it the third highest on record.10
A major factor is driving urgency this year. After nearly twenty years at 30%, VCT income tax relief will fall to 20% from April 2026.11 In the immediate term, VCTs have seen a spike in fundraising as investors look to front-run the implementation, with Wealth Club reporting a 538% increase in VCT subscriptions the day after the budget.11
“Reaching our £90 million hard cap, oversubscribed, reflects the growing recognition investors have that VCTs are one of the most effective ways to back the next generation of UK entrepreneurs, while targeting long-term, tax-efficient returns.”
Will Fraser-Allen, Managing Partner at Albion
Key VCT tax benefits investors are locking in before April 2026:
- 30% income tax relief (dropping to 20% after April 2026)
- Tax-free dividends
- Capital gains tax exemption
- Diversified, liquid access via London Stock Exchange listing
The VCT sector now manages £6.5 billion, supports over 1,000 companies, and sustains more than 100,000 jobs across the UK.12 These numbers make VCTs far more than a tax planning tool. They are a lifeline for British entrepreneurs building the companies of tomorrow.
What This Signals for the Future of UK Innovation Funding
The timing of this raise also matters in a broader context. The annual and lifetime fundraising caps for companies raising from both EIS investors and VCTs are set to increase from April 2026, allowing companies to raise larger rounds while still offering investors tax advantages.11
That is a welcome shift. As UK startups compete globally, they need bigger rounds to stay in the race. Albion’s pipeline of investments across AI, energy tech, and digital health positions it to move quickly when those new limits kick in.
AlbionVC is a leading UK venture capital firm, investing in healthcare and tech for 30 years, with $1.5 billion under management and a top decile track record.13 The firm invests in biotech and deeptech through its university investment strategy, focused on IP-rich assets, and has backed some of the world’s most significant genetic medicine, quantum and AI spinouts, with 4 NASDAQ IPOs.13
Fraser-Allen put it best when he said VCTs continue to offer a compelling proposition for those looking to back British breakthroughs, adding that Albion is well-positioned to deploy this capital into companies driving technological and scientific progress.
The £90 million close is more than a fundraising headline. It is a signal that investors still believe deeply in the power of British innovation, even as tax rules shift and global competition heats up. For the founders who will receive this capital, it represents something more personal: the chance to build, to hire, and to turn a bold idea into something that changes lives. If you have an opinion on the future of VCT investing or UK tech funding, drop it in the comments below.
