Venture capital trusts (VCTs) are investment funds that invest in small, early-stage companies with high growth potential. These companies are often in the technology or biotech sectors and have a higher risk profile than more established companies. VCTs offer tax benefits to investors in the UK, making them a popular choice for those looking to invest in start-ups. The funds are managed by professional fund managers who aim to provide investors with a return on their investment through capital growth and dividends. VCTs can be a useful way for investors to diversify their portfolio and support the growth of innovative new businesses.