To mark the 25th anniversary of the ProVen VCTs, we recently spoke with Andrew Davison, who served as Chair of ProVen VCT from its inception in 2000 until 2018. Andrew also served as Chair of ProVen Growth and Income VCT for a period of time following its foundation. Andrew played a key role in shaping the governance, direction, and growth of the funds during their formative years.

In this conversation, he shares his reflections on the launch of the first fund, the evolution of the ProVen VCTs, and the vital role of the board in supporting a VCT’s success.

You were involved with ProVen VCT from its inception in 2000. What are your memories of the launch? Any significant challenges or milestones that you remember?

At the time, there was a real sense of euphoria in the investment world. It was the peak of the dot-com boom, and VCTs were drawing a lot of attention. I was approached by the team which spun out of Guinness Mahon, who were launching a VCT with a more credible and experienced outlook than many others entering the space at the time. Compared with other teams that lacked experience in early stage investing or understanding entrepreneurial risk, the management team stood out as one of the few that truly grasped what was required.

The launch of ProVen VCT in 2000 was a success, and the following year we launched ProVen Growth and Income (PGI) VCT. Unfortunately, the launch of PGI missed the tail end of the dot-com boom and coincided with something of a bubble bursting. Fundraising conditions quickly became more challenging due to the market downturn that followed.

One of the biggest difficulties in those early years was the need to invest quickly to meet regulatory targets – in a recessionary environment, this was far from easy. However, the portfolio held up well, and we had one particularly outstanding success in Mergermarket, which helped build a strong early track record. The returns from that exit were fully distributed, and that helped establish a loyal and engaged shareholder base.

What made you decide to take on the role as Chair of a newly launched VCT at that time?

My background had been in working with smaller companies, including at County Bank Ventures, and I had developed a real appreciation for the challenges and rewards of working with entrepreneurial businesses. I’d also served as a Chairman and CEO during a small bank’s recovery, and had held several non-executive roles.

When I was approached about supporting the ProVen VCTs, it was clear the team had the credibility and long-term mindset to build something durable. It felt like the right team - and the right time - to get involved.

Over your 18 years as Chair, how did you see the ProVen VCTs evolve - in terms of the companies backed, investment strategy, or team?

Over time, the ProVen VCTs developed a more structured and strategic investment approach. In the earliest years, like many funds launching at the time, the strategy was shaped by opportunity as much as long-term planning. The second fund, originally named ProVen Media VCT, reflected an early ambition to focus on media and related technologies, though the funds soon evolved to take a broader and more diversified view.

What really stood out was how the investment strategy matured in parallel with the depth and quality of the team. As the funds built their presence in the UK, the team’s experience and sector insight grew significantly, and with it came a sharper focus and alignment around investment themes and direction. The result was a much more intentional, disciplined approach to deploying capital.

This evolution in strategy and team strength was reflected in investments like Monica Vinader – a standout example of the value that comes from a strong partnership between investor and founder, built on shared ambition and mutual trust.

Were there any standout moments or milestones that you look back on with particular pride?

Mergermarket certainly stands out as a pivotal success early on. It gave a real boost to the track record and demonstrated what the funds were capable of achieving.

More broadly, I was proud to see how shareholder returns evolved – the focus on delivering value to shareholders was always central and remained consistent throughout my time with the funds.

As Chair, how did you see the role of the board evolve in supporting the management team and navigating challenges?

I’ve always believed the fundamental role of a board is twofold: to protect the integrity of the VCT structure, and to improve shareholder returns over time. In a VCT, the board also has a responsibility to provide support and challenge to the investment manager, offering guidance on strategy, weighing in on major investment decisions, and ensuring good governance throughout.

The relationship between the board and the executive team at Beringea was consistently collaborative and built on mutual respect. The board’s role was always to provide thoughtful challenge where needed, but also to support and guide – ensuring investment decisions aligned with long-term goals and shareholder interests.

Ultimately, the role of the board is to act in the best interests of the shareholders and to support the executive team in doing the same.

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