Octopus Investments acquires majority stake in Katalyst Ventures
With the VCT honeymoon over and new stricter rules as to where VCTs can invest in the future, VCT consolidation is now well under way, with Octopus consolidating with Katalyst (see below), and Quester being merged with New Media Spark. Expect more mergers as VCTs try and specialize in different sectors.
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The VCT and UK smaller companies fund management specialist Octopus Investments is now merged with private investor group Katalyst Ventures, with the new group retaining the name Octopus Ventures. Octopus’ strength is in VCT fund management, while Katalyst’s skills are in identifying strong, early stage investment opportunities and helping them develop.
With the changes in regulation around the type of businesses VCTs can invest in, the Octopus/Katalyst merger offers both parties the opportunity to enhance deal flows and expand their investment propositions.
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