A weighty tome was published last month and caused a stir in financial technology circles. 

In particular it looked at the large number of recent failures in firms that had raised significant funding via EIS or VCT sources. So this article has value from the IFA perspective – just how many of these VCTs actually make money? And from the regulatory angle -see below the risks involved in new ventures in the highly regulated markets post credit crunch.

Of the twenty ventures – from Nutmeg to Betterment and many in between in areas as diverse as debit cards and P2P lending:

5 failed due to regulatory issues

6 others failed for other reasons – report from Morgan Stanley.

7 still going.

2 sold.

see more advice from our fud manager here