Future Generations VCT performance update

NAV growth, dividend payment, and portfolio progress

Twice a year, we provide shareholders with an update on how Octopus Future Generations VCT is performing. This interim update covers the period to 30 June 2026 and looks at the latest Net Asset Value (NAV), the fund’s performance over the reporting period, and the factors that have influenced returns.

In simple terms, the NAV is the underlying value of the Venture Capital Trust’s (VCT’s) assets divided by the number of shares in issue, giving a per-share value for the fund. The NAV reflects the value of the portfolio companies, as well as any cash and other assets held by the VCT, less any liabilities.

Octopus Future Generations VCT recently announced that its NAV had increased by 4.2% since 31 December 2025, reaching 84.4p per share at 30 June 2026. The Board has also announced a 0.9p per share interim dividend, payable on 7 December 2026 and currently intends to declare a further interim dividend alongside the 31 December 2026 NAV announcement in March, subject to performance, available cash resources and Board approval.

These half-year results provide an opportunity to look beyond the headline figures and explore what is driving performance across the portfolio. We’ll explain the key factors behind the NAV growth, why we believe Octopus Future Generations VCT is entering an important stage of its development, and where we see opportunities ahead.

Octopus Future Generation VCT’s maturing portfolio  

For those less familiar with Octopus Future Generations VCT, it invests in ambitious, unquoted early-stage businesses using technology and innovation to address large and growing markets. Four years after launch, the VCT now has a diversified portfolio of 38 companies at different stages of development.

The 4.2% increase in NAV during the first half of the year was mainly driven by strong revenue growth and continued progress across a number of portfolio companies.

Notable contributors included: 

• Voy, formerly Manual, which has continued to grow rapidly and now generates approximately $675m of annual revenue, growing at >100% year-on-year.¹
• CoMind, the neurotechnology company founded by James Dacombe (Europe’s youngest self-made billionaire) ², which continues to make strong progress.
• Remofirst, which now operates across more than 185 countries.³

These are private businesses that are generally inaccessible to individual investors. Through Octopus Future Generations VCT shareholders gain exposure to a diversified portfolio of private companies with high growth potential, including the likes of some of those above.

Gains were partially offset by valuation reductions across a number of portfolio companies. These reflected a range of company-specific challenges, including trading performance and funding requirements, as well as the valuation methodology applied at the reporting date.

As with any investment in early-stage businesses, there is no guarantee that these companies will achieve their growth ambitions or that investments will increase in value. Some may fall in value while others may fail completely.

Entering the next phase of the portfolio journey

Early-stage venture portfolios typically take time to mature. In their first few years, losses from underperforming companies can outweigh gains, while the most successful businesses often require time to scale before their progress is reflected in valuations.

Four years after launch, we believe Octopus Future Generations VCT is entering the next phase of its portfolio journey. There are four key reasons for this, including signs that the portfolio may be progressing along the venture capital “J-curve”, a common pattern where returns can be lower in the early years before improving as investments mature:

1. Signs of portfolio growth

The uplift in NAV reflects stronger portfolio companies beginning to make a more meaningful contribution to overall performance, while we believe many of the challenges within the current portfolio that typically emerge in the earlier years of venture portfolio have already been encountered and addressed.

2. A new investment team

At the start of 2026, Luke Edis and Stan Williams joined to lead Octopus Future Generations VCT’s investment activity, supported by Octopus Ventures’ wider investment and portfolio teams. Both bring extensive venture capital and VCT experience, alongside deep networks across the UK and European startup ecosystem. Luke leads the team as Lead Fund Manager drawing on experience as an investor, operator and adviser, while Stan brings deep connectivity across the European founder and angel-investor community.

3. A refreshed investment strategy

The team has sharpened the Octopus Future Generations VCT’s investment strategy, placing greater emphasis on building a strong pipeline of opportunities and backing capital-efficient businesses with strong early evidence of product-market fit. So far this year, the VCT has invested £2.7m across new and follow-on opportunities.

This included investments in GreenPixie and geoSurge – the first companies backed directly by Octopus Future Generations VCT without co-investment from another Octopus-managed fund. We believe this marks an important milestone in the development of the VCT’s own investment pipeline and sourcing capability. GreenPixie helps large organisations reduce the cost and environmental impact of their cloud infrastructure, while geoSurge helps businesses understand and improve how their brands appear across AI-generated search and discovery platforms.

Together, these businesses demonstrate the breadth of opportunities being created by the rapid adoption of AI. Our focus extends beyond businesses developing AI technology itself to those enabling or benefiting from its wider impact, including opportunities across energy, infrastructure, data, and cybersecurity.

4. New shareholder distribution policies

The Board has formalised an updated approach to dividends and share buybacks. Its long-term dividend ambition is to target regular annual dividends equivalent to approximately 5% of opening NAV, subject to how the portfolio performs and available cash. Given the VCT remains relatively early in its development, distributions are expected to build progressively over time – although dividends are not guaranteed and may vary from year to year. The Board has also stated its intention, over time, to operate a share buyback programme, under which shares may be repurchased at a discount of up to 5% to NAV, subject to relevant conditions.

Today’s 0.9p interim dividend represents an important early milestone in the delivery of the updated dividend policy.

Any future dividends are dependent on the performance of the VCT and the availability of distributable reserves. Dividends are not guaranteed.

Looking ahead 

We remain positive about the direction of the portfolio, and selective in our investment strategy. The funding environment for early-stage businesses remains demanding. Capital continues to flow to companies demonstrating strong growth, clear differentiation and capital efficiency, while businesses missing commercial milestones are finding fundraising increasingly difficult. As a result, disciplined capital allocation remains as important as ever.

Over the next 12–24 months, our focus will be on supporting existing portfolio companies where additional investment can create long-term value, while continuing to build a high-quality pipeline of new investment opportunities.

We believe the combination of a maturing portfolio, a refreshed investment team and a sharpened investment strategy positions Octopus Future Generations VCT well for its next phase of development.

¹ Voy, September 2026.  

² “British AI Chip Founder Becomes Europe’s Youngest Self-Made Billionaire”, Forbes, August 2026.

³ RemoFirst, September 2026.