Octopus Investments has announced the launch of a £40m fundraise for its Apollo VCT in order to “capitalise on the wave of digitalisation”.
The VCT, which specialises in fast-growing B2B software businesses, recently added software-as-a-service firm Turtl to its portfolio, which produces marketing for large businesses. Another holding in the portfolio that the team believes has bright future prospects is talent management platform Sova, which has more than doubled its revenue since Apollo's investment in November.
Apollo VCT focuses on early-stage and higher risk companies, but which also already have recurring revenues and have potential for expansion either through research and development, increased investment in sales and marketing, or geographic expansion.
It is managed by a team of 12, who also have access to a network of venture partners that is provided by Octopus.
Richard Court, manager of Apollo VCT, said: "This time last year we were talking about remote working and the technology we need to adapt to new working patterns.
"Fast forward 12 months and we are now seeing very significant changes permeate almost every sector imaginable as businesses invest heavily in new technology solutions to increase efficiency and future-proof their operations. It is safe to say that software adoption is still massively on the rise."
He added that he is "very excited by the opportunity for expansion" among software compares as barriers to trade are lower compared to other sectors.
"Our pipeline for new investments has never been stronger and we want to capitalise on this momentum."