| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Oxford Technology 3 Venture Capital Trust plc (OTT.L) is a UK-based venture capital trust specializing in early-stage investments in science, technology, and engineering sectors. Listed on the London Stock Exchange, the fund focuses on unlisted companies within a 60-mile radius of Oxford, providing capital ranging from £0.1 million to £0.5 million per investment. The trust plays a crucial role in fostering innovation by supporting high-potential startups in the UK's thriving tech ecosystem. With a concentrated investment approach, OTT.L targets disruptive technologies and scalable business models, positioning itself as a key player in the early-stage venture capital space. The fund's sector-specific expertise and regional focus differentiate it from broader venture capital firms, making it an attractive option for investors seeking exposure to cutting-edge UK tech startups.
Oxford Technology 3 Venture Capital Trust presents a high-risk, high-reward investment proposition. The fund's focus on early-stage, unlisted companies in specialized tech sectors offers potential for significant capital appreciation but comes with substantial risk due to the inherent volatility of startup investments. The negative revenue and net income figures reflect the venture capital model of upfront investment with longer-term payoff horizons. The absence of debt and a modest dividend (32p per share) provide some stability, but investors should be prepared for illiquidity and potential capital erosion. The trust's niche focus on Oxford-area tech startups could provide unique opportunities as the region continues to grow as a UK tech hub, but diversification is limited. Suitable only for investors with high risk tolerance and long-term horizons.
Oxford Technology 3 Venture Capital Trust competes in a specialized segment of the venture capital market, differentiating itself through geographic and sector focus. Its competitive advantage lies in its concentrated expertise in Oxford's tech ecosystem, which includes proximity to Oxford University's research output and spinout companies. The trust's small investment size range (£0.1m-£0.5m) positions it between angel investors and larger VC firms, filling an important funding gap for early-stage companies. However, its limited geographic scope may cause it to miss opportunities in other UK tech hubs like Cambridge or London. The venture capital trust structure provides tax advantages for UK investors that traditional VC funds don't offer, enhancing its appeal to domestic investors. Compared to generalist VCTs, OTT.L's technology specialization allows deeper due diligence but increases sector concentration risk. The lack of follow-on funding capacity beyond £0.5m may limit its ability to support portfolio companies through later funding rounds, potentially diluting returns.