Growth capital

FORTHCOMING CHANGE relating to call for evidence on tax support for entrepreneurs: At Budget 2025, the government published a call for evidence (which closed on 28 February 2026) on the impact of existing tax incentive schemes and options to provide further support for entrepreneurs. The call for evidence seeks to understand the effectiveness of the current EIS and VCT schemes, to explore potential new ways to support scaling companies that have reached the VCT and EIS limits, and to gather evidence about how tax policies might seek to encourage different types of investors.

Unquoted companies commonly require investment at every stage of development, from their inception right through to when the business is fully established and profitable. Companies will often seek investment from the private equity and venture capital industry, which is where external investors provide finance in return for an equity stake in potentially high-growth companies.

There can be some discrepancy in the terminology used within this sector. For example, it is worth noting that the term 'private equity' is often used to describe the industry as a whole, but the term 'venture capital'