Empowering British Innovation: Why Raising VCT Limits Is Vital for the UK’s Future
Chris Green, CEO
| Xapien
Chris Green, CEO of Xapien, in support of the VCTA’s Growth Beyond Limits campaign on why raising VCT investment limits is crucial for empowering innovative UK businesses to scale, compete globally, and secure Britain’s economic future.
In the 19th century, Britain’s ambition, ingenuity, and determination converged in the laying of the first transatlantic telegraph cable – a technological triumph that connected continents and propelled the nation to the forefront of global progress. What once took two weeks became two minutes, and the impact was transformational.
Today, we stand at a similar crossroads. The choices we make now about how we invest in our high-growth businesses will determine whether the UK remains a global leader in innovation, or whether we risk falling behind as others seize the opportunities of a new technological era.
At London-based Xapien, we’re living proof that Britain can still produce globally significant, category-defining innovation. Our purpose-built AI-powered due diligence platform is a unique solution to manage third-party risk. It works by automating the process of researching and understanding people and companies, pulling together information from across the open web, news sources, corporate records, sanctions and watchlists, databases and more. Instead of analysts spending days or weeks manually piecing together profiles, Xapien delivers a clear, comprehensive report surfacing hidden connections, reputational issues, red flags and regulatory concerns – in minutes.
Just as the telegraph cable was made possible by bold investment in new technology, so too are today’s most promising British companies, like Xapien, propelled by the support of forward-thinking investors. For us, Venture Capital Trust funds (VCTs) have played a decisive role in our growth journey. VCTs offer more than capital: they bring expertise, guidance, and vital networks, equipping scaling businesses to innovate, create jobs, and compete globally.
Our story with YFM, a VCT Association member and our own VCT fund backer, exemplifies this. From the start they have shared our vision to set a new standard for due diligence without compromise. Our partnership has supported the adoption of Xapien by multinational corporations, elite academic institutions, and world-leading legal practices across Europe, North America, and Asia, enhancing the UK’s reputation as an AI innovator. This partnership is exactly the kind of virtuous cycle that the VCT scheme was designed to foster, where entrepreneurial ambition meets expert support to create value for the whole country.
But there’s a catch. Under the current VCT scheme, YFM has now reached its investment cap in Xapien. This is not for lack of appetite, ambition, or opportunity. Instead, it is a direct result of regulatory limits that no longer reflect the pace or scale of UK innovation. Other VCT funds face the same frustration: they must step back just as the companies they believe in are ready to scale, drive exports, and secure British leadership on the global stage. If we do not act, we risk stifling the momentum of our most dynamic businesses at the very moment they are poised to make the biggest impact.
The VCT Association’s Growth Beyond Limits campaign, featured in an open letter to the government, makes it clear: the lifetime and annual limits of the VCT scheme must be raised. This is not just a technical adjustment; it is an urgent investment in the future of our country’s high-growth companies, our communities, and our collective prosperity. In a world where global competitiveness and economic resilience hang in the balance, bold action is needed to prevent stagnation in one of our most successful funding schemes.
We are calling on the Chancellor, ahead of this week’s Autumn Budget, to seize this opportunity. Updating VCT and Enterprise Investment Scheme (EIS) investment limits will empower the next generation of pioneering British businesses to thrive, deliver new opportunities across the UK, and ensure that Britain remains a beacon for innovation. It will also ensure that as our homegrown companies expand globally, the UK keeps a meaningful stake in their success, with ownership, jobs, and intellectual property anchored here.
The story of the first transatlantic telegraph cable is a reminder of what’s possible when Britain invests in its future. Today, the cables we lay are digital and the frontiers we cross are technological, but the principle remains the same. By adapting our investment frameworks for the 21st century, we can ensure the UK remains connected – to opportunity, to prosperity, and to the world.
