Octopus Ventures, a London-based investment firm, recently announced that it had let go of 8 employees, primarily affecting junior investors such as associates. The decision to reduce the number of employees was made in order to shift the company’s focus to its existing portfolio companies and not make new investments. Sources familiar with the matter explained that this move was necessary due to current market conditions.
In addition to the layoffs, Malcolm Ferguson, who ran Octopus Titan VCT, left the fund to join London-based firm ETFS Capital. He was temporarily replaced by Joe Oliver. This change comes after a reduction in the value of Octopus Ventures’ portfolio last year, which saw stakes written off in 80 companies. Despite aggressive recruitment efforts during the COVID-19 pandemic, Octopus Ventures has now reduced its investment team to a total of 41 people across all funds.
The venture capital industry is facing challenges and funds are finding it difficult to retain staff due to a tougher industry forecast. Octopus Ventures’ diverse portfolio includes companies such as Elliptic, Secret Escapes, ManiPets and Peak.ai, along with past investments in successful businesses such as Zoopla and Depop. As part of Octopus Group, the firm is also involved in energy companies and VCT funds that offer tax breaks to investors.