Octopus Future Generations VCT
open
Open for new investment
Octopus Future Generations VCT
Supporting businesses that address the most significant challenges shaping the markets of the future.
open
Open for new investment
Octopus Future Generations VCT works with unquoted smaller companies, armed with innovative technology and talented management teams.
The VCT invests in businesses that are helping to build a sustainable planet, empower people, or revitalise healthcare. These themes serve as a framework for identifying businesses with the potential to address meaningful market needs and promising returns for investors over the coming decades. Why?
- Tackling society’s biggest challenges means there are huge markets to address
- The demand for solutions to the planet’s challenges is urgent and growing
- People increasingly want to work for businesses that make a positive difference in the world; as a result, these companies are attracting the best talent
The VCT is managed by Octopus Ventures, a pan-European venture capital team that partners with entrepreneurs, helping turn their ambitious ideas into world-class companies.
Reasons to invest in Octopus Future Generations VCT
Maturing early-stage portfolio
Now in its fourth year, the VCT holds 38 companies at different stages of their growth journey, offering exposure beyond “day one” investments and increasing potential for future scale‑ups and growth potential.
Active management
We work with the companies we back to support their growth, whether that’s taking a seat on the board, helping them expand overseas or introducing them to industry experts.
Diversification
Through a VCT, investors gain access to unquoted smaller companies. Unquoted companies have a unique profile and can diversify an investment portfolio.
Tax reliefs
Income tax relief equal to 30% of the amount invested up to the first £200,000 of investment.
Tax-free capital gains and dividends. Find out more.
Risks to bear in mind
Capital at risk
This is a high-risk investment. The value of an investment in Octopus Future Generations VCT, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest.
Tax treatment
Tax treatment depends on individual circumstances and tax rules could change in the future.
Volatility and liquidity
VCT shares could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. They may also be harder to sell.
VCT qualification status
Tax reliefs depend on the VCT maintaining its qualifying status.
Risks to bear in mind
Capital at risk
This is a high-risk investment. The value of an investment in Octopus Future Generations VCT, and any income from it, can fall as well as rise. Investors may not get back the full amount they invest.
Tax treatment
Tax treatment depends on individual circumstances and tax rules could change in the future.
Volatility and liquidity
VCT shares could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. They may also be harder to sell.
VCT qualification status
Tax reliefs depend on the VCT maintaining its qualifying status.
Our investment framework
This VCT applies a clear investment framework to ensure we are supporting businesses that address the most significant challenges shaping the markets of the future.
Building a sustainable planet
Businesses under this theme might be reducing carbon emissions, protecting ecosystems or creating a circular economy that removes waste.
Empowering people
We want to empower people to create a fairer and more equitable society. So, we invest in businesses that are re-imagining the future of society.
Revitalising healthcare
Healthcare is essential. We want to back businesses moving health and wellbeing forward. That could mean investing in entrepreneurs who are improving lives through digital health solutions.
Example portfolio companies across the three themes
Manual
Manual is transforming the healthcare industry by making high-quality care more accessible and stigma-free. The business provides innovative treatments for range of conditions, from hair loss and low testosterone to weight management and diagnostics. With over 800,000 patients served across the UK and Brazil, Manual continues to expand its impact.
Drift
Drift aims to drive the clean energy transition worldwide with high-performance sailing vessels that harness deep ocean wind to produce green hydrogen at sea and deliver it globally. It does this using a unique, AI-enabled vessel routing that enables the vessels to find and stay in optimum weather conditions. Empowering people to create a fairer and more equitable society.
Living Optics
Living Optics develops hyperspectral cameras that capture information invisible to the human eye or standard imaging. Their technology makes advanced hyperspectral imaging faster, smaller and more accessible, enabling applications such as plastics sorting, environmental monitoring and medical analysis.
1LinkedIn Top Start-ups, September 2024
Future Generations VCT performance update
Kamran Adle, Partner at Octopus Ventures and Tim Dickens, Head of Investment Specialists at Octopus Ventures, provides an update on Octopus Future Generations VCT’s recent performance.
Fund highlights
Net Asset Value (NAV)
As at 4 September 2025
82.8p
Funds under management
As at 30 June 2025
£53m
Cumulative dividends paid
Since inception
5.6p
Number of holdings
As at 30 November 2025
38
Fees and charges
If you are investing in Octopus Future Generations VCT through a financial adviser, you can ask for an initial advice charge for the investment ⁴ to be paid on your behalf through the VCT. For other options on ways to invest, view page 27 of the brochure.
| Advised (initial only) | ||
| Upfront charges | Initial fee (to Octopus) | 3% |
| Adviser charges | Up to 4.5% | |
| Ongoing annual charges | Effective annual management charge (to Octopus) | 2% |
| Non-investment services fee (to Octopus) | 0.3% | |
| Performance fees ⁵ | 20% |
Please note that any initial advice charges you pay to your adviser will not be eligible for income tax relief.
⁴ Please note the VCT is unable to facilitate ongoing adviser charges.
⁵ We want our investments to do what we say they will and we want to align ourselves with the long term investment objectives of shareholders. A way in which we do this is by applying a performance fee on the gains made. In order for Octopus to receive this performance fee we must meet two conditions. Firstly, the VCT’s Total Return (NAV plus cumulative dividends paid) at the previous year-end must exceed 120p and secondly shareholders must have received cumulative dividends of a minimum of 12p. If all of these conditions are met, then 20% of the excess above the starting NAV of 97p will be paid to Octopus. For full details on the performance fee and other fees please see the prospectus and Key Information Document (KID). Any performance fee will be paid in three tranches, over three years and may be recalculated or partially cancelled if the total return decreases in the second or third year.
Fees and charges
For Octopus Future Generations VCT, we’re able to facilitate an initial advice charge for the investment ⁴. This can be paid on your client’s behalf through the VCT.
| Advised (initial only) | ||
| Upfront charges | Initial fee (to Octopus) | 3% |
| Adviser charges | Up to 4.5% | |
| Ongoing annual charges | Effective annual management charge (to Octopus) | 2% |
| Non-investment services fee (to Octopus) | 0.3% | |
| Performance fees ⁵ | 20% |
Please note that any initial advice charges your client pays you will not be eligible for income tax relief.
⁴ Please note the VCT is unable to facilitate ongoing adviser charges.
⁵ We want our investments to do what we say they will and we want to align ourselves with the long term investment objectives of shareholders. A way in which we do this is by applying a performance fee on the gains made. In order for Octopus to receive this performance fee we must meet two conditions. Firstly, the VCT’s Total Return (NAV plus cumulative dividends paid) at the previous year-end must exceed 120p and secondly shareholders must have received cumulative dividends of a minimum of 12p. If all of these conditions are met, then 20% of the excess above the starting NAV of 97p will be paid to Octopus. For full details on the performance fee and other fees please see the prospectus and Key Information Document (KID). Any performance fee will be paid in three tranches, over three years and may be recalculated or partially cancelled if the total return decreases in the second or third year.
Key documents
| Octopus Future Generations VCT Prospectus | Download |
| Octopus Future Generations VCT Brochure | Download |
| Octopus Future Generations VCT Product Overview | Download |
| Octopus Future Generations VCT Key Information Document | Download |
| Octopus Future Generations VCT Responsible Investment Policy | Download |
| Octopus Future Generations VCT – SDR Consumer Facing Disclosure Statement | Download |
| Octopus Future Generations VCT Sustainability Report | Download |
How to invest
Minimum investment is £3,000.
Clients can choose to invest via bank transfer, cheque or banker’s draft.
Clients can only claim tax relief on VCT investments of up to £200,000 in any single tax year.
We will allot clients’ VCT shares at the next available allotment date.
How to invest
Minimum investment is £3,000.
You can choose to invest via bank transfer, cheque or banker’s draft.
You can only claim tax relief on VCT investments of up to £200,000 in any single tax year.
We will allot your VCT shares at the next available allotment date.
Contact our team
Get in touch
If you have a question about Octopus Future Generation VCT or an application,
call us on 0800 316 2295.
Read our FAQs
If you have a question about an existing VCT, please visit our FAQ page.
Contact our team
Get in touch
If you’ve got a question about any of our products or services, please get in touch.
Read our FAQs
If you have a question about an existing VCT, please visit our FAQ page.
Please read: We do not offer investment or tax advice, and we always recommend investors talk to a financial adviser before making investment decisions. This advertisement is not a prospectus. Investors should only subscribe for shares on the basis of information contained in the prospectus and the Key Information Documents (KID), which are available in the document section of this page.
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Octopus Future Generations VCT FAQs
What types of clients might the Octopus Future Generations VCT be suitable for?
This VCT is designed for clients comfortable with higher-risk, illiquid investments and who can commit capital for at least five years. It may be suitable for individuals who have already made use of their ISA and pension allowances, who have a significant income tax liability they wish to reduce, and who are interested in supporting innovative businesses tackling global challenges.
Can Octopus Future Generations VCT shares be sold at any time?
Future Generations VCT shares are listed on the London Stock Exchange, so in principle, they can be sold at any time. However, trading volumes are typically low, and clients may not always be able to find a buyer. There may also be a buy back facility available, although this is not guaranteed. Investors should also be aware that if they sell their shares within five years of allotment, they may be required to return any income tax relief claimed.
What fees apply when investing in Octopus Future Generations VCT?
Charges include an initial fee, ongoing management charges, and the potential for a performance fee if the VCT achieves certain return targets. Full details of costs and charges are provided in the prospectus, and advisers should make sure clients understand the impact of fees on potential returns.
What resources does Octopus provide to help advisers explain future generations’ VCTs to clients?
Octopus offers a range of support materials, including prospectuses, key information documents, and client-friendly brochures. Advisers also have access to regular investor updates, portfolios, and case studies that highlight the impact of the investments. In addition, dedicated business development managers and adviser support teams are available to help with suitability discussions and client presentations.
What is Octopus Future Generations VCT’s investment focus and strategy?
The VCT backs smaller UK businesses that are addressing global challenges in three key areas: building a sustainable planet, empowering people, and revitalising healthcare. The portfolio is managed by Octopus Ventures, giving clients access to one of Europe’s largest venture capital teams.
What tax reliefs are available for investments in Octopus Future Generations VCT?
Investors can claim up to 30% income tax relief on investments of up to £200,000 per tax year, provided shares are held for at least five years. Dividends are paid free of income tax, and any gains on disposal of VCT shares are exempt from capital gains tax. Tax treatment depends on individual circumstances and is subject to change, so advisers should ensure clients take professional tax advice before investing.