An Introduction to VCTs for Founders

Partnering with a VCT VCTs are publicly listed investment entities on the London Stock Exchange, aimed at directing funds into early-stage, UK-based businesses across various sectors, from advanced technology to consumer goods. To qualify for VCT investment, companies must:

PARTNERING WITH A VCT Beyond financial backing, VCTs offer expertise, mentorship, and access to a broad spectrum of industry connections. When a founder partners with Pembroke, our goal is to act as a guide, offering assistance in all aspects of the business. This may include advice on refining business strategies, sourcing senior hires, facilitating leadership development, and navigating complex market challenges. This enables the founder to focus on their core strengths. Our long-term investment strategy, known as “patient capital,” is a key advantage of VCTs, as it eliminates a mandated exit horizon. This also gives us time to build trust and create a strong base for advice and support.  To secure investment from Pembroke, direct communication via email, LinkedIn, or mutual connections works well to arrange an introductory meeting. However, a well-researched, personalised note can go a long way. WHAT WE LOOK FOR At Pembroke, we invest at an early stage (of £1m-£10m of revenue), once the business has discovered early signs of real product market fit. Given the stage of investment, people are critical to any Pembroke investment case, we believe that a strong leadership team paired with a resilient business model, capable of adapting to ongoing market changes, leads to business success. Our team comprises former founders and experienced investors, allowing us to effectively identify and understand ambitious founders and their innovative business models.  OUR TOP TIPS FOR FOUNDERS Raising investment can be one of the most defining moments in a founder’s journey. Here are some principles we believe can make a real difference when engaging with investors like us: Be open and honest Transparency builds trust. Founders who are upfront about both the strengths and the weaknesses of their business tend to earn more credibility. We back entrepreneurs who are intellectually honest and self-aware—those who don’t try to paper over the cracks, but instead show they understand the challenges and are ready to tackle them. Most issues come out in due diligence anyway; better to lead with them. Nail your value proposition Investors see a lot of pitch decks. To stand out, you need to clearly articulate why your business matters: What problem are you solving? Why now? Why you? Make it obvious what sets your proposition apart and why it has the potential to scale. The strongest pitches come from founders who deeply understand their market and communicate that insight with clarity and conviction. Choose the right investor Raising capital is not just about the money. The right investor should be aligned with your vision, add strategic value, and understand the space you’re operating in. Taking capital from the wrong investor can create friction and slow you down. The right partner can help you unlock growth, navigate obstacles, and think long-term. Show resilience and adaptability No startup journey is smooth. Investors look for founders who can weather the inevitable storms—who stay calm under pressure, learn quickly, and adapt when needed. Grit, flexibility, and self-awareness often matter as much as the business model.