VCTs have doubled their fundraising in the most recent complete tax year, according to the AIC.
For 2009-2010, VCTs raised £340m, up from £158m the previous year. This figure ranks as the fourth highest since VCTS were launched in 1995.
VCTs' biggest fundraising year was 2005-2006, when they saw inflows of £779m. In total, the vehicles have raised £3.9bn since launch.
Ian Sayers, the AIC's director general, says this capital raising will be beneficial to VCTs in an environment of constrained bank lending. "This year's impressive fundraising will increase VCTs' capacity to support companies which find it difficult to raise development capital," he says.
"It is particularly valuable given banks' continued reluctance to lend to small businesses. This money will support enterprises across the UK in key growth sectors, help create jobs, develop export markets and increase investment in research and development.
"This year's fundraising demonstrates investors' continued willingness to support VCTs. Whatever the outcome of the General Election, policymakers should maintain their position alongside other policy initiatives designed to support future economic growth and, in the long term, help rebuild the public finances."
