Octopus Titan VCT ProspectusOffers for Subscription by Octopus Titan VCT plc for the tax years 2016/2017 and 2017/2018 to raise up to £70 million by way of an issue of New Shares, with an over-allotment facility of a further £50 million.

Octopus Titan VCT plc

23 August 2016

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THISDOCUMENTISIMPORTANTANDREQUIRESYOURIMMEDIATEATTENTION

If you are in any doubt about the action to be taken, you should immediately consult your bankmanager,stockbroker,solicitor,accountantor financialadviserauthorisedpursuanttotheFinancialServicesandMarketsAct2000(FSMA).Thisdocument,whichcomprisesaprospectusrelatingtoOctopusTitanVCTplc(the“Company”)dated23 August 2016, has been prepared in accordance with the prospectus rulesmade under Part VI ofFSMA,andhasbeenapprovedforpublicationbytheFinancialConductAuthorityasaprospectusundertheProspectusRuleson23August2016.The Company and the Directors, whose names appear on page 30 of this document, acceptresponsibilityfortheinformationcontainedherein.TothebestoftheknowledgeoftheCompanyandthe Directors (who have taken all reasonable care to ensure that such is the case), the informationcontainedinthisdocumentisinaccordancewiththefactsanddoesnotomitanythinglikelytoaffecttheimportofsuchinformation.PersonsreceivingthisdocumentshouldnotethatHowardKennedy,whichisauthorisedandregulatedintheUnitedKingdombytheFinancialConductAuthority,isactingassponsorfortheCompanyandno-oneelseandwillnot,subject totheresponsibilitiesand liabilities imposedbyFSMAor theregulatoryregime established thereunder, be responsible to any other person for providing the protectionsaffordedtocustomersofHowardKennedyorprovidingadviceinconnectionwithanymattersreferredtoherein.

OctopusTitanVCTplc

(registerednumber06397765)

Prospectusrelatingto:

offersforsubscriptionbyOctopusTitanVCTplc ofNewSharestoraiseuptoamaximumof£70million,withanoverallotmentfacilityofafurther£50million,payableinfullincashonapplication

Sponsor

HowardKennedyCorporateServicesLLPTheordinary sharesof theCompany in issueat thedateof thisdocumentare listedon thepremiumsegmentoftheOfficialListoftheUKListingAuthorityandtradedontheLondonStockExchange’smainmarket for listed securities.Applicationhasbeenmade to theUKListingAuthority for all of theNewShares to be listed on the premium segment of theOfficial List and applicationwill bemade to theLondon Stock Exchange for the New Shares to be admitted to trading on its mainmarket for listedsecurities. It isexpectedthatsuchadmissionwillbecomeeffectiveandthat tradingwill commence inrespectoftheNewShareswithin10businessdaysoftheirallotment.TheNewShareswillbeissuedinregisteredformandwillbefreelytransferableinbothcertificatedanduncertificatedformandwillrankpari passu in all respects with the existing Shares. The Offer is conditional on the passing by theShareholdersofResolutions1and5 attheGeneralMeeting.TheOfferisnotbeingmade,directlyorindirectly, inorintotheUnitedStates,Canada,Australia,NewZealand, Japan or the Republic of South Africa or their respective territories or possessions, anddocuments should not be distributed, forwarded or transmitted in or into such territories. The NewShares have not been and will not be registered under the United States Securities Act of 1933 (asamended)andmaynotbeoffered,soldordelivered,directlyorindirectly,inorintotheUnitedStates,Canada,Australia,NewZealand,JapanortheRepublicofSouthAfrica.

III:6.1III:6.2III:4.3III:4.8

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CONTENTS SUMMARY 4RISKFACTORS 16EXPECTEDTIMETABLE,OFFERSTATISTICSANDCOSTS 18LETTERFROMTHECHAIRMAN 19PARTONE:THEOFFER 23IntroductiontotheOffer 23SettingupaDirectDebit 23TermsoftheOffer 24UseofFunds 24IntermediaryCharges 24InvestmentPolicyandNewInvestmentPolicy 24ConflictsofInterest 26PerformanceHistory 27OctopusTitanVCTinnumbers 28InvestorTestimonials 29DividendPolicyandDividendReinvestmentScheme 29BuybackPolicy 30TheBoard 30TheInvestmentTeam 31ManagementRemuneration 34 ExampleInvestments 34ExampleExit 36PARTTWO:TAXBENEFITSANDCONSIDERATIONSFORINVESTORS 38 PARTTHREE:FINANCIALINFORMATIONONTHECOMPANY 42PARTFOUR:INVESTMENTPORTFOLIOANDPRINCIPALINVESTMENTSOFTHECOMPANY 44PARTFIVE:ADDITIONALINFORMATIONONTHECOMPANY 46DEFINITIONS 71TERMSANDCONDITIONS 74ANNEXI:TERMSANDCONDITIONSOFTHEDIVIDENDREINVESTMENTSCHEMEOFTHECOMPANY 81 ANNEXII:DIVIDENDREINVESTMENTSCHEMEMANDATEFORM 86

LISTOFADVISERSTOTHECOMPANY 88

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SUMMARY

Summaries aremade up of disclosure requirements known as ‘Elements’. The Elements are numbered inSectionsA—E.ThissummarycontainsalltheElementsrequiredtobeincludedinasummaryforthistypeofsecuritiesandissuer. Because some Elements are not required to be addressed there may be gaps in the numberingsequenceoftheElements.EventhoughanElementmayberequiredtobeinsertedintothesummarybecauseofthetypeofsecuritiesandissuer,itispossiblethatnorelevantinformationcanbegivenregardingtheElement.InthiscaseashortdescriptionoftheElementisincludedinthesummarywiththementionof‘notapplicable’.

SectionA-IntroductionandWarnings

Element Disclosurerequirement

Disclosure

A.1 Warning This summary should be read as an introduction to the Prospectus. Any decision toinvest inthesecuritiesshouldbebasedonconsiderationoftheProspectusasawholebytheinvestor.WhereaclaimrelatingtotheinformationcontainedintheProspectusisbroughtbeforeacourt, theplaintiff investormight,underthenational legislationofthe EEA States, have to bear the costs of translating the Prospectus before the legalproceedingsareinitiated.Civilliabilityattachesonlytothosepersonswhohavetabledthesummary, includinganytranslationthereof,butonly if thesummary ismisleading,inaccurateorinconsistentwhenreadtogetherwiththeotherpartsoftheProspectusorit does not provide, when read together with other parts of the Prospectus, keyinformation in order to aid investors when considering whether to invest in suchsecurities.

A.2 ConsentforUseofProspectusbyfinancialintermediaries

The Company and the Directors consent to the use of the Prospectus, and acceptresponsibility for the content of the Prospectus,with respect to subsequent resale orfinalplacementofsecuritiesbyfinancialintermediaries,fromthedateoftheProspectusuntilthecloseoftheOffer.TheOfferisexpectedtocloseonorbefore22August2017.Therearenoconditionsattachingtothisconsent.FinancialintermediariesmustgiveinvestorsinformationonthetermsandconditionsoftheOfferatthetimetheyintroducetheOffertoinvestors.

ScheduleB–Issuer

Element Disclosure

requirementDisclosure

B.1 Legalandcommercialname

OctopusTitanVCTplc.

B.2 Domicileandlegalform

Octopus Titan VCT plc was incorporated and registered in England and Wales on 12October2007asapubliccompanylimitedbysharesundertheCompaniesAct1985withregisterednumber06397765.

B.5 Groupdescription

The Company has one wholly owned subsidiary, Zenith Holding Company Limited, alimited company incorporated in the Cayman Islandswhose registered office is at c/oMourantOzannesCorporateServices(Cayman)Limited,94SolarisAvenue,CaymanBay,POBox1348,GrandCaymanKY1-1108,CaymanIslands.

B.6 Majorshareholders

The Company is not aware of any person or personswho have, orwho following theOfferwillor couldhave,directlyor indirectlyvoting rights representing3%ormoreoftheissuedsharecapitaloftheCompanyorwhocan,orcouldfollowingtheOffer,directly

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orindirectlyexercisecontrolovertheCompany.TherearenodifferentvotingrightsforanyShareholder.

B.7 Selectedfinancialinformation

Selected historical financial information relating to the Company, which has beenextracted from the audited and unaudited financial statements referenced in thefollowingtables,issetoutbelow. Year Ended

31 October2013(audited)

Year Ended31 October2014(audited)

Year Ended31 October2015(audited)

Six monthsended 30April 2015(unaudited)

Six monthsended 30April 2016(unaudited)

Net assets(£’000)

20,924 32,876 228,461 215,042 309,060

Net assetvalue perShare(p)

95.2 101.4 102.7 97.7 95.7

DividendpaidperShareduringtheperiod(p)*

36.5 5.0 4.0 2.5 7.0*

NAVpluscumulativedividendspaid(p)

137.7 148.9 154.7 147.7 154.7

TotalExpenses(£’000)

1,343** 1,753** 9,073** 2,672 3,581

Asapercentageof

averageShareholders’

funds

6.4% 5.3% 4.0% 1.2% 1.2%

Revenuereturnafter

expensesandtaxation(£’000)

(168) (474) (2,232) (1,306) (1,907)

Netassetvaluereturn/

(loss)(p)

10.4 12.9 7.7 (0.1) 0.2

*Aninterimdividendof2.0ppersharewasdeclaredfortheperiodto30April2016andwillbepaidon2September2016toshareholdersontheregisterasat12August2016.**IncludesaperformancefeepaymentOn27November2014 theCompanymergedwithTitan1,Titan3,Titan4andTitan5withatotalof140,597,475SharesbeingissuedtoformershareholdersofTitan1,Titan3, Titan 4 and Titan 5. Net proceeds of £24.1million, £52.0million, £53.0million and£99.8millionwere raisedby theCompanyunderoffers for subscriptionwhichopenedon 7 February 2013, 3 September 2013, 16 September 2014 and 8 September 2015respectively.Saveinrespectofthesemattersbothduringthefinancialperiodsreferred

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toaboveand since30April 2016 therehasbeenno significant change in the financialconditionoroperatingresultsoftheCompany.

B.8 Keyproformafinancialinformation

Notapplicable.ThereisnoproformafinancialinformationintheProspectus.

B.9 Profitforecast Notapplicable.Noprofitforecastorestimateismade.

B.10 Descriptionofthenatureofanyqualificationsintheauditreportonthehistoricalfinancialinformation

Notapplicable.Theauditreportsonthehistoricalfinancialinformationcontainedwithinthedocumentarenotqualified.

B.11 InsufficientWorkingcapital

Notapplicable.TheCompanyisoftheopinionthattheworkingcapitalavailabletotheCompany and the Group is sufficient for the Company’s and the Group's presentrequirements (that is, for at least the next twelve months from the date of thisdocument).

B.34 Investmentobjective andpolicyincludinginvestmentrestrictions

CurrentInvestmentPolicyThecurrentinvestmentpolicyoftheCompanyisasfollows:TheCompany’sfocusisonprovidingearlystage,developmentandexpansionfundingtounquoted companies with the Company making a typical initial investment of £0.1million to £5 million and will comprise a portfolio of largely unquoted companies,predominantlyfocussedwithinthefollowingsectors:●Technology●Media●Telecoms●Consumerlifestyleandwell-being●EnvironmentTheDirectorscontroltheoverallriskoftheportfoliobyensuringthattheCompanyhasexposure to a diversified range of companies from a number of different sectors. Inordertolimittherisktotheportfoliothatisderivedfromanyparticularinvestment,nomorethan15%oftheamountinvestedbyshareholdersintheCompanywillbeinvestedin any one unquoted company (including both Qualifying and Non-QualifyingInvestments).Non-QualifyingInvestmentsAn active approach is taken to manage the cash prior to investing in qualifyingcompanies.AstheCompanyhasreacheditsinvestmenttargetforHMRC,themajorityofthe remainder of funds will be invested in money market funds and other funds. Byinvesting a proportion of its assets into these other funds, some exposure to a broadrange of AIM-quoted andmainmarket listed smaller andmedium-sized companies isgained,whilstmaintainingliquiditywithintheCompany.The Company may also make Non-Qualifying Investments where the InvestmentManagerbelieves that the risk/returnprofile is consistentwith theoverallobjectiveofthe Company, which may include, from time to time, making a small number ofinvestmentsorfurtherinvestmentsincompanieswhichmeettheprofileofaQualifyingInvestmentbutwouldotherwisenotbeaQualifyingInvestment.

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QualifyingInvestmentsNowthattheCompanyisthroughitsinitialQualifyingInvestmentperiodtheinvestmentprofileisexpectedtobe:

• 75-85%QualifyingInvestments,primarilyinunquotedcompanies• 15-25% incash,moneymarketsecuritiesand fundsmanagedbyOctopusand

otherNon-QualifyingInvestments.The Company will not borrow money for the purposes of making investments. TheinvestmentdecisionsmademustadheretotheHMRCqualificationrules.TheDirectorswill continually monitor the investment process and ensure compliance with theinvestmentpolicy.Inconsideringaprospectiveinvestmentinacompany,particularregardismadeto:

• thestrengthofthemanagementteam;• evidenceofhighmarginproductscapableofaddressingfast-growingmarkets;• thecompany’sabilitytosustainacompetitiveadvantage;• theexistenceofproprietarytechnology;and• the company’sprospectsofbeing soldor floated,usuallywithin three to five

years.NewInvestmentPolicyTheCompanywaslaunchednineyearsagoin2007andsincethenitsinvestmentpolicyhasremainedunchanged.Withthebenefitofexperience,thecontinuingevolutionoftheearlystageinvestmentenvironmentandrecentchangesinVCTlegislation,theCompanyfeelsitisappropriatetorefreshtheinvestmentpolicy.WhilsttheCompanyhasmadechangestotheterminology itappliestothe investmentsectors, in reality this is simply a change in the language used to describe the sectorsrather than a change to the investment strategy itself. Instead of defining separately:Technology,Media,Telecoms,ConsumerLifestyleandWell-being,andEnvironment,theCompany has simplified this to "a range of technology sectors" which it believes issimpler to communicate andmore reflectiveof theway theCompany thinks about itsinvestments,bothhistoricandfuture.TheunderlyingportfoliohasnotchangedandthetypeofcompaniestheCompanywillinvestinwillnotchange. TheCompanyhasalsomadechangestothetypesofnon-Qualifying Investments itwillmake,whichispurelytoalignwithrecentVCTlegislativechanges.TheCompanyhasalsoincreasedthetoprangeofthe%ofQualifyingInvestmentsthatitwillaimtoholdfrom85%to90%.This,again, is reflectiveofchanges in legislationrestrictingnon-QualifyingInvestments, meaning that the balance may shift slightly towards holding moreQualifyingInvestments. The most significant change is the removal of the passage restricting the use ofborrowing to make investments. The Company has no intention to make use ofborrowing for thispurpose in the immediate future;however itwould like toalign theinvestment policywith the Articles and remove any constraints placed upon it by thisclausetoprovidemoreflexibilityintothefutureshouldanysuchneedordesirearise.TheCompanydoesnotbelievethatthechangesoutlinedwillaffecthowtheCompanyismanaged on a day to day basis and will not affect the diversity of the Company'sportfolio.SubjecttothepassingofResolution3attheGeneralMeeting,thenewinvestmentpolicywillbeasfollows:

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TheCompany’sfocusisonprovidingearlystage,developmentandexpansionfundingtounquotedcompanies.TheCompanytypicallymakesaninitialinvestmentof£0.1millionto £5 million and will make further follow on investments into existing portfoliocompanies. The intention is to hold a portfolio of largely unquoted technologycompanies.TheDirectorscontroltheoverallriskoftheportfoliobyensuringthattheCompanyhasexposure to a diversified range of investee companies from a number of differenttechnology sectors. In order to limit the risk to the portfolio that is derived from anyparticularinvestment,atthepointofinvestmentnomorethan15%oftheCompanybyvaluewillbeinanyoneinvestment.AnyborrowingbytheCompanyforthepurposesofmakinginvestmentswillbeinaccordancewiththeCompany'sarticlesofassociation.Theinvestmentprofileisexpectedtobe:●75-90%inVCTqualifyinginvestments,primarilyinunquotedcompanies●10-25%innon-VCTqualifyinginvestmentsorcash.Non-VCTQualifyingInvestmentsAnactiveapproachistakentomanageanycashheld,priortoinvestinginVCTqualifyingcompanies.After theCompanyhasensured it satisfiesallVCT investmentqualificationtargets required by HMRC, the majority of the remaining cash will be invested inaccordance with HMRC rules for Non-Qualifying Investments. Currently this includesliquidAIFs,UCITSorothermoneymarketfundsincludingthosemanagedbyOctopus.VCTQualifyingInvestmentsInvestment decisions made must adhere to HMRC’s VCT qualification rules. Inconsideringaprospectiveinvestmentinacompany,particularregardismadeto:●thestrengthofthemanagementteam;●large,typicallyglobal,addressablemarkets;●theinvesteecompany’sabilitytosustainacompetitiveadvantage;●theexistenceofproprietarytechnology;●visibilityoverfuturerevenuesandrecurringincome;and●thecompany’sprospectsofbeingsoldorfloatedinthefuture,atasignificantmultipleontheinitialcostofinvestment.NomaterialchangesmaybemadetotheCompany’sinvestmentpolicydescribedabovewithoutthepriorapprovalofshareholdersbythepassingofanOrdinaryResolution.TheDirectorswill continuallymonitor the investment process and ensure compliancewiththeinvestmentpolicy.

B.35 Borrowinglimits

The Company has the power in its articles of association to borrow up to 50% of theaggregate of (i) the amount paid up (or credited as paid up) on the allotted or issuedsharecapitaloftheCompanyand(ii)theamountstandingtothecreditofthereserves,whether or not distributable, after adding or deducting any balance standing to thecredit or debit of the profit and loss account, as adjusted in accordance with theCompany’sarticlesofassociation.

B.36 Regulatorystatus

The Company is authorised and regulated by the FCA as a self managed alternativeinvestmentfund.

B.37 Typicalinvestor

Atypical investorforwhomtheOfferisdesignedisaUKtaxpayerover18yearsofagewithan investment rangeofbetween£3,000and£200,000who,having regard to therisk factors set out in Section D of this Summary, considers the investment policydetailed above to be attractive. Thismay include retail, institutional and sophisticatedinvestors and high net worth individuals who already have a portfolio of non-VCT

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investments.

B.38 Investmentof20%ormoreinasingleunderlyingassetorinvestmentcompany

Notapplicable.TheCompanywillnotinvestmorethan20%inasingleunderlyingassetorinvestmentcompany.

B.39 Investmentof40%ormoreinasingleunderlyingassetorinvestmentcompany

Notapplicable.TheCompanywillnotinvestmorethan40%inasingleunderlyingassetorinvestmentcompany.

B.40 Applicant’sserviceproviders

TheCompanyand itsDirectorsentered intoanagreementdated23August2016withOctopus and Howard Kennedy subject to which Howard Kennedy agreed to act assponsortotheCompany inrespectoftheOfferandOctopusagreedtousereasonableendeavours to procure subscribers for New Shares. Under this agreement Octopus ispaid a feeof up to 5.5%of the funds receivedunder theOffer and anongoing feeof0.5%perannumofthelatestnetassetvalueoftheinvestmentamountsreceivedfrominvestorsundertheOfferwhohaveinvesteddirectlyintotheCompanyandnotthrougha financial intermediary for up to nine years, subject to these fees not exceeding, inaggregate,anamountthatisequalto2.35%oftheCompany'smarketcapitalisationasatthedateoftheagreement,andhasagreedtodischargealltheexternalcostsofadviceandtheirowncostsinrespectoftheOffer.Undertheagreementcertainwarrantieshavebeen given by the Company, the Directors and Octopus to Howard Kennedy. TheCompanyhasalsoagreedtoindemnifyHowardKennedyinrespectofitsroleassponsor.Thewarrantiesandindemnityareinusualformforcontractsofthistype.Theagreementcanbe terminated if any statement in theProspectus isuntrue, anymaterialomissionfrom the Prospectus arises or any breach of warranty occurs. Octopus has agreed toindemnify the Company against the costs of the Offer exceeding 7.5% of the grossproceedsoftheOffer.A management agreement (the “Management Agreement”) dated 2 November 2007betweenTitan1,theCompanyandOctopusVenturesLimited(asnovatedtoOctopusbya deed of novation dated 19 October 2009) and an administration agreement (the“Administration Agreement”) dated 2 November 2007 between Titan 1, the Companyand Octopus, (the Management Agreement and Administration Agreement both asvaried by deeds of variation dated 7 February 2013 and 16 September 2014). TheManagement Agreement provides that Octopus will provide investment managementservicestotheCompanyinrespectofitsportfolioofqualifyinginvestmentsforafeeof2% of the Company’s NAV on an annual basis. The Manager is also entitled to aperformance incentive fee under theManagement Agreement and the AdministrationAgreementassetoutbelow.

InNovember2014,theTitanVCTsweremerged.AtthetimeoftheMergeralltheTitanVCTs except for Titan 5 had met their performance fee hurdles (Titan 5 being theyoungestoftheTitanVCTs,havingbeenincorporatedin2010).Thiscurrentlycontinuestohaveanimpactonthewaytheperformancefeeiscalculatedandpaid.

1.InrespectoftheproportionoftheCompany'sfundequivalenttothepreviousTitan5sharesatthetimeoftheMerger,aperformancefeeof20%ofallgainsaboveNAVplus cumulative dividends paid of 147.2p in the Company (equivalent to 100p per

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Titan 5 share prior to the Merger) is to be paid to the Manager. This becomespayablewhenbothofthefollowingconditionsaremet:

• The NAV plus cumulative dividends paid of the Company is 169.3p. Thiscondition has not yet been met - NAV plus cumulative dividends was154.7pperShareasat30April2016;and

• Further dividends are paid of 3.3p per Share after the Merger. Thisconditionhasbeenmet-9.0pperShareofdividendshavebeenpaidintheperiodfromtheMergerto30April2016

As the dividend paid condition has now been met, the lower threshold of147.2phasbeenexceededandit isconsideredlikelythattheupperthresholdwillbemetinduecourse,thisperformancefeeiscurrentlybeingaccrued(i.e.has not yet been paid) for gains above the 147.2p threshold: as at 30 April2016, theCompanyhad accrued£528,000 in respect of this performance feewhichistakenintoaccountinthepublishedNAVoftheCompany.

2.InrespectoftheremainingproportionoftheCompany'sfund,aperformancefeeof20%ofallfuturegainsaboveNAVpluscumulativedividendspaidof154.7p,subjecttoahighwatermark(beingthehighesttotalreturnfromapreviousyearend),willbepayabletotheManager.

3. Once the performance fee hurdles in relation to the previous Titan 5 hurdles aremet, the Company'swhole fundwill be subject to a 20%performance fee on anyfuturegainsaboveNAVpluscumulativedividendspaidof169.3p,subjecttoahighwatermark(beingthehighesttotalreturnfromapreviousyearend),willbepayabletotheManager.

PursuanttotheAdministrationAgreement,Octopusprovidesadministrationservicestothe Company for a fee of 0.3% of the NAV of the Company on an annual basis andcompanysecretarialservicesforafeeof£20,000perannum.Thedeedofvariationdated16September2014extendedthetermoftheManagementAgreementandtheAdministrationAgreementforafurther5yearsfromcompletionoftheMerger,subjecttoearlierterminationintheeventoftheunderperformanceoftheManager, the departure of certain members of the Manager or as agreed by theShareholders and the Manager, and thereafter the Management Agreement andAdministration Agreement will be terminable by the parties thereto on 12 months’writtennotice.

B.41 RegulatorystatusoftheManager/custodian

OctopusisauthorisedandregulatedbytheFinancialConductAuthority.

B.42 CalculationofNetAssetValue

The NAV of a Share is calculated by the Company in accordance with its accountingpolicies and is published at least every six months through a Regulatory InformationService.ThecalculationoftheNAVperSharewouldonlybesuspendedincircumstanceswherethe underlying data necessary to value the investments of the Company could notreadily,orwithoutundueexpenditure,beobtained.DetailsofanysuspensioninmakingsuchcalculationswillbeannouncedthroughaRegulatoryInformationService.

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B.43 Cross liabilityre umbrellacollectiveinvestmentundertaking

Notapplicable.TheCompany isnotanumbrellacollective investmentundertakingandas such there is no cross liability between classes of Shares or investment in anothercollectiveinvestmentundertaking.

B.44 Nofinancialstatementshavebeenmadeup

Not applicable. The Company has commenced operations and historical financialinformationisincludedwithinthedocument.

B.45 Portfolio TheCompany’s investmentportfoliocomprisespredominantlyUKunquotedcompaniesacrossarangeofindustriesasoutlinedintheinvestmentpolicy.Asat30April2016(thedatetowhichthemostrecentunauditedfinancialinformationhasbeendrawnup),theCompany’sportfolioofinvestmentscomprised,byvalue,£188,265,000.

B.46 MostrecentNetAssetValue

TheunauditedNAVperShareasat30April2016was95.7p.TheunauditedNAVasat22August2016was93.7pasitisex-dividend.

SectionC—SecuritiesElement Disclosure

requirementDisclosure

C.1 Typesandclassofsecurities

TheCompanywillissuenewordinarysharesof10peachpursuanttotheOffer.TheISINandSEDOLoftheNewSharesareGB00B28V9347andB28V934respectively.

C.2 Currency Sterling.

C.3 Numberofsecuritiestobeissued

TheCompanywillissueNewSharesundertheOfferofupto£70millionoffundsraised,withanoverallotmentfacilityofuptoafurther£50million.

C.4 Descriptionoftherightsattachingtothesecurities

AsRegardsIncome:Theholders of the Shares as a class shall be entitled to receive suchdividends as theDirectorsresolvetopay.AsRegardsCapital:Ona returnof capitalonawindinguporanyother returnof capital (other thanonapurchaseby theCompanyof its shares) the surplus capital andassets shallbedividedamongsttheholdersofSharesprorataaccordingtothenominalcapitalpaidupontheirrespectiveholdingsofShares.AsRegardsVotingandGeneralMeetings:Subject to disenfranchisement in the event of non-compliancewith a statutory noticerequiringdisclosureastobeneficialownership,eachholderofSharespresentinpersonorbyproxyshallonapollhaveonevoteforeachShareofwhichheistheholder.AsRegardsRedemption:TheSharesarenotredeemable.

C.5 Restrictionsonthefreetransferabilityofthesecurities

Notapplicable.TherearenorestrictionsonthefreetransferabilityoftheShares.

C.6 Admission ApplicationhasbeenmadetotheUKListingAuthorityfortheNewSharestobeissued

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pursuanttotheOffertobeadmittedtothepremiumsegmentoftheOfficialListandanapplication will be made to the London Stock Exchange for the New Shares to beadmittedtotradingontheLondonStockExchange’smainmarketforlistedsecurities.Itis expected that such admissionswill become effective, and that dealings in theNewShareswillcommence,within10businessdaysoftheirallotment.

C.7 Dividendpolicy

Generally, aVCTmustdistributebywayof dividend such amount as to ensure that itretains notmore than 15% of its income from shares and securities. The Company istargeting a regular annual dividend of 5p with the potential to pay special dividendswhentherearesignificantgainsfromthesaleofportfolioholdings.

SectionD—Risks

Element Disclosure

requirementDisclosure

D.2 Keyinformationonthekeyrisksspecifictotheissuer

• Shareholders may be adversely affected by the performance of theinvestments,whichmay restrict theabilityof theCompany todistributeanycapitalgainsandrevenuereceivedontheinvestments.

• TheCompany’sinvestmentsmaybedifficult,andtaketime,torealise.• Investment inunquoted companies,which comprisesmostof theCompany’s

portfolio, by its nature, involves a higher degree of risk than investment incompanieslistedontheOfficialList.

• TheCompanywill only pay dividends on the Shares to the extent that it hasdistributable reserves and cash available for that purpose. The Finance Act2014 amended the VCT Rules in respect of VCT shares issued on or after 6April 2014, such that VCT status will be withdrawn if, in respect of sharesissued on or after 6 April 2014, a dividend is paid (or other forms ofdistribution or payments are made to investors) from capital within threeyears of the end of the accounting period in which shares were issued toinvestors. ThismayreducetheamountofdistributablereservesavailabletotheCompanytofunddividendsandsharebuybacks.

• TheFinanceAct2014restrictsincometaxreliefonsubscriptiontoaVCTafter5April2014where,within6months,whetherbeforeorafterthesubscription,the investor had disposedof shares in that VCT or a VCTwhich at any timemergeswiththatVCT.

D.3 Key

informationonthekeyrisksspecifictothesecurities

• The value of the Shares may go down as well as up. Shareholders may notreceive back the full amount invested and could lose part or all of theirinvestment.

• There is no certainty that the market price of Shares will fully reflect theirunderlyingNAVorthatanydividendswillbepaid,norshouldShareholdersrelyuponanysharebuybackpolicytoofferanycertaintyofsellingtheirSharesatpricesthatreflecttheirunderlyingNAV.

• Although the existing Shares have been (and it is anticipated that the NewShareswillbe)admittedtothepremiumsegmentoftheOfficialListandare(orwillbe)tradedontheLondonStockExchange’smarketforlistedsecurities,thesecondarymarketforVCTsharesisgenerallyilliquidandShareholdersmayfinditdifficulttorealisetheirinvestment.

SectionE—Offer

Element Disclosure

requirementDisclosure

E.1 NetproceedsandexpensesoftheIssue

ThenetproceedsoftheOffer,assuminga£120millionsubscriptionandthemaximuminitialcharge,willbe£111million.Thecostsandexpenses(excludingVATbutincludingintermediary commission) relating to the Offer for the Company and the expenseschargedtoaninvestor,eitherdirectlyorindirectly,willbeupto7.5%ofthegrossfundsraisedbytheCompany.

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E.2a Reasonforthe

Offer,useofproceedsandestimatednetamountoftheproceeds

TheCompany’ssuccess,todate,hashighlightedthattheinvestmentmodelusedbytheManagerisonethatcanleadtosignificantreturns.TheBoardbelievesthattheportfolioiswellpositionedtocontinuethistrend,deliveringcapitalgrowthtothoseinvestorsabletotakealongtermviewtoinvestinginwell-runUKcompanies.Newfundsraisedwillbeusedfornewinvestmentsandfollow-oninvestmentstosupporttheexistingportfolioinaccordancewith theCompany’s published investment policy. Thenet proceeds of theOffer,assuminga£120millionsubscriptionandthemaximuminitialcharge,willbe£111million.

E.3 TermsandconditionsoftheOffer

TheOfferPricewillbedeterminedbythefollowingformula:

• the most recently announced NAV per Share of the Company, divided by0.945

Investorswho are existing, orwhowere previously, shareholders of anyOctopus VCTwill benefit from the costs of the Offer being reduced by 1.0%, or by 2% if validapplicationsarereceivedonorbefore13December2016.OtherApplicantswhosevalidapplicationsarereceivedonorbefore13December2016willbenefitfromcostsoftheOffer being reduced by 1.0%. Applicants will receive these reductions in the form ofadditionalNewShares,whichwillbepaidforbyOctopus.

TheCompanyannounces itsNAVat leastevery sixmonths.Where the shareprice forthe Company has been declared ex-dividend on the London Stock Exchange, theNAVusedfordeterminingtheOfferPricewillbeex-dividend.InrespectoftheOffer,theNAVperOfferSharewillberoundeduptoonedecimalplaceandthenumberofNewSharesto be issued will be rounded down to the nearest whole number (fractions of NewShareswillnotbeallotted).Wherethereisasurplusofapplicationfunds,thesewillbereturnedtoapplicants(exceptwheretheamountislessthantheOfferPriceofoneNewShareinwhichcaseitwillbedonatedtocharity),withoutinterest.TheOfferwillbeclosedonfullsubscription, i.e.oncethefull£70millionplustheoverallotmentfacilityof£50millionhavebeenraised.TheBoardreservestherighttoclosetheOfferearlierandtoacceptapplicationsandissueNewSharesatanytimepriortothecloseoftheOffer.NewSharesissuedwillrankparipassuwiththeexistingSharesfromthedateofissue.TheOfferisconditionaluponthepassingofResolutions1and5attheGeneralMeeting.

E.4 Materialinterests

Notapplicable.NointerestismaterialtotheissueoftheNewShares.

E.5 Nameofpersonsellingsecurities

Notapplicable. Nopersonorentity isoffering tosell thesecurityaspartof theOfferandtherearenolock-upagreements.

E.6 Amount andpercentage ofdilution

TheexistingissuedSharesintheCompanywillrepresent72.7%oftheenlargedordinarysharecapitaloftheCompanyimmediatelyfollowingtheOffer,assumingthattheOfferisfullysubscribed,includingtheoverallotmentfacility,atanOfferPriceof99.2p,andonthatbasisShareholderswhodonotsubscribeundertheOfferwill,therefore,bedilutedby27.3%.

E.7 Expenseschargedtotheinvestor

Forallinvestors,theOfferPriceperSharewillbedeterminedbyaformulareflectingtheNAVperShareadjustedforanallowanceforthemajorityofthecostsoftheOffer.Theformula is: the most recently announced NAV per Share, divided by 0.945. A moredetailedexplanationissetoutatE3above.InconsiderationforpromotingtheOffer,theCompanywillpayaninitialchargeof3%of

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thegrosssumsinvestedintheOffertoOctopus.Thisispayableinthesamewayonallsubscriptions to the Offer. From this sum Octopus will discharge all external costs ofadvice and their own costs in respect of the Offer. In addition, there are then fourcategoriesofoptions,whicharedeterminedbythecircumstancesofeachinvestorandtheir explicit instructions, in respect ofwhich payments can bemade to advisers andotherintermediaries.Theseareasfollows:1) Adirectinvestment

Investors who have not invested their money through a financialintermediary/adviserandhaveinvesteddirectlyintotheCompany.In consideration for promoting the Offer, if an application is made directly (notthroughan intermediary)thentheCompanywillpayOctopusanadditional initialchargeof2.5%oftheinvestmentamountandanadditionalannualongoingchargeof0.5%oftheinvestmentamount’slatestNAVforuptonineyears,providedtheinvestorcontinuestoholdtheShares.

2) An advised investment where advice is received for an upfront fee with anongoingadviserchargeInvestorswhohaveinvestedintheOfferthroughafinancial intermediary/adviserandhavereceivedupfrontadviceandwillreceiveongoingadvice.The Company can facilitate a payment on behalf of an investor to anintermediary/adviser (an ‘initial adviser charge’)ofup to2.5%of the investmentamount. If the investor has agreed with his/her intermediary/adviser to pay alower initialadvisercharge, thebalance (uptoamaximumof2.5%)willbeusedfor the issue and allotment of New Shares for the investor, issued at themostrecentlyannouncedNAVperShare,dividedby0.945asdescribedabove.The Company can also facilitate annual payments to an intermediary/adviser(‘ongoingadvisercharges’)inrespectofongoingadvisoryservicesprovidedbytheintermediary/adviser to the investorofup to0.5%perannumof the investmentamount’slatestNAVforuptonineyears,whilsttheinvestorcontinuestoholdtheShares. If the investor chooses to pay their adviser less than 0.5% annually, theremaining amount will be used for the issue and allotment of additional NewShares for the investor, at the most recently announced NAV per Share. Anyresidual amount less than the cost of a New Sharewill be donated to a charityapprovedbytheBoard.Iftheinvestorterminatestheirrelationshipwiththeintermediary/adviserthentheCompanywillnotmakeany furtherpaymentsofongoingadvisercharges to thatintermediary/adviser. The Company will facilitate ongoing adviser charges to anewadviserifaninvestorchangestheiradviserandrequeststheongoingadviserchargetobepaidtotheirnewadviser.

3) An advised investment where advice is received for an upfront fee with noongoingadviserchargeInvestorswhohaveinvestedintheOfferthroughafinancialintermediary/adviserandhave receivedupfront advice, including investorswho are investing throughintermediaries/advisersusingfinancialplatforms.Where an investor agreed an upfront fee only, the Company can facilitate apaymentofaninitialadviserchargeofupto4.5%oftheinvestmentamount.Iftheinvestorchooses topay their intermediary/adviser less than themaximum initialadvisercharge,theremainingamountwillbeusedfortheissueandallotmentofadditional New Shares for the investor, issued at the most recently announcedNAVper Share,dividedby0.945asdescribedabove. In these circumstances theCompanywillnotfacilitateongoingannualpayments.Inbothcases(2)or(3),shouldthe investorchoosetopaytheadvisermorethan

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2.5% or 4.5% respectively, the excess amount will have to be settled by theinvestordirectlywiththeadviser.

4) Anon-advisedinvestmentusinganintermediaryInvestors who have invested their money through a financial intermediary andhavenotreceivedadvice.Aninitialcommissionofupto2.5%oftheinvestmentwillbepaidbytheCompanytotheintermediary.Anannualongoingadviserchargeof0.5%oftheinvestmentamount’s latest NAV will be paid by the Company to the intermediary. Suchcommissionwillbeavailable forup tonineyearsprovided that the intermediarycontinues to act for the investor and the investor continues tobe thebeneficialowneroftheShares.

These chargesmay, according to the proportion of Advised Investors where advice isreceived foranupfront feeonly, create some limited reductionof thenetasset valueperShareimmediatelysubsequenttosubscriptionsintheOfferbeingmade.Thiseffectwill be mitigated and is ultimately expected to be more than compensated, forcontinuing investors,bytheexpectedbenefitsderivedfroma largerpoolof investablefundsandthefinancialbenefitinsubsequentperiodsoftheabsenceofongoingadviserchargesinrespectofsuchinvestments.

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RISKFACTORS

Prospective investors should consider carefully the following risk factors in addition to the otherinformationpresentedinthisdocument.Ifanyoftherisksdescribedbelowweretooccur,itcouldhaveamaterialeffectontheCompany’sbusiness,financialconditionorresultsofoperations.Therisksanduncertaintiesdescribedbeloware theonlyknownmaterial risks theCompanyor itsShareholderswillface.Anydecision to invest under theOffer shouldbebasedon considerationof this document as awhole. RiskfactorsrelatingtotheCompanyTheOfferisconditionalontheapprovalbyShareholdersofResolutions1and5tobeproposedattheGeneralMeeting.IftheseResolutionsarenotapproved,theOfferwillbewithdrawnandtheexpectedbenefits of the Offer will not be realised and the Company will be responsible for the costs of theProposals.Thepastperformanceof theCompanyorOctopus isno indicationof futureperformance.The returnreceivedbyShareholderswillbedependentontheperformanceof theunderlying investmentsof theCompany.Thevalueofsuchinvestments,andtheinterestincomeanddividendstheygenerate,mayfallandadverselyaffecttheperformanceoftheCompany.TheCompany’s investmentsmaybedifficult, and take time, to realise.TheremayalsobeconstraintsimposedontherealisationofinvestmentsinordertomaintaintheVCTtaxstatusoftheCompany.BothofthesemayadverselyaffecttheperformanceoftheCompany.Itcantakeanumberofyearsfortheunderlyingvalueorqualityofthebusinessesofsmallercompanies,suchasthoseinwhichtheCompanyinvests,tobefullyreflectedintheirmarketvaluesandtheirmarketvalues are often also materially affected by general market sentiment, which can be negative forprolongedperiods.ThismayadverselyaffecttheperformanceoftheCompany.Investment inunquotedcompanies,by itsnature, involvesahigherdegreeof risk than investment incompanies listed on the Official List. In particular, small companies often have limited product lines,marketsorfinancialresourcesandmaybedependentfortheirmanagementonasmallnumberofkeyindividuals and may be more susceptible to political, exchange rate, taxation and other regulatorychanges. Inaddition, themarket forsecurities insmallercompanies isusually less liquid thanthat forsecuritiesinlargercompanies,bringingwithitpotentialdifficultiesinacquiring,valuinganddisposingofsuchsecurities.Investmentreturnswill,therefore,beuncertainandinvolveahigherdegreeofriskthaninvestmentinacompanylistedontheOfficialList.WhilstitistheintentionoftheBoardthattheCompanywillcontinuetobemanagedsoastoqualifyasaVCT, there canbeno guarantee that such statuswill bemaintained. Failure to continue tomeet thequalifyingrequirementscouldresult intheShareholders losingthetaxreliefsavailableforVCTshares,resultinginadversetaxconsequencesincluding,iftheholdinghasnotbeenheldfortherelevantholdingperiod,arequirementtorepaythetaxreliefsobtained.Furthermore,shouldtheCompanyloseitsVCTstatus,dividendsandgainsarisingonthedisposalofshares intheCompanywouldbecomesubjecttotaxandtheCompanywouldalsoloseitsexemptionfromcorporationtaxoncapitalgains.If a Shareholder disposes of his or her Shareswithin five years of issue, he or shewill be subject toclawbackbyHMRCofanyincometaxreliefsoriginallyclaimed.Thetaxrules,ortheirinterpretation,inrelationtoaninvestmentintheCompanyand/ortheratesoftaxmaychangeduringthelifeoftheCompanyandmayapplyretrospectively,whichmayadverselyaffectaninvestmentintheCompany.AnypurchaserofexistingSharesinthesecondarymarketwillnotqualifyforthethen(ifany)availabletaxreliefsaffordedonlytosubscribersofNewSharesontheamountinvested.

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TheCompanywillonlypaydividendsonSharestotheextentthatithasdistributablereservesandcashavailableforthatpurpose.AreductioninincomefromtheCompany’sinvestmentsmayadverselyaffectthedividendspayabletoShareholders.Suchareductioncouldarise,forexample,fromlowerdividendsor lower rates of interest paid on the Company’s investments, or lower bank interest rates than arecurrentlyavailable.VCTstatuswillbewithdrawnif, inrespectofsharesissuedonorafter6April2014,adividendispaid(orotherformsofdistributionorpaymentsaremadetoinvestors)fromsharecapitalorreservesarisingfromthe issueof shareswithin threeyearsof theendof theaccountingperiod inwhichshareswereissuedtoinvestors.ThismayreducetheamountofdistributablereservesavailabletotheCompanytofunddividendsandsharebuybacks.RiskfactorsrelatingtotheSharesThevalueofSharescanfluctuateandinvestorsmaynotgetbacktheamounttheyinvested.Inaddition,there isnocertaintythatthemarketpriceofShareswill fullyreflecttheirunderlyingNAVorthatanydividends will be paid, nor should Shareholders rely upon any Share buyback policy to offer anycertainty of selling their Shares at prices that reflect their underlyingNAV and theremay be periodsduringayearwheretheCompanywillbeprohibitedfrombuyingbackShares.AlthoughtheexistingShareshavebeen(andit isanticipatedthattheNewShareswillbe)admittedtotheOfficialListandare(orwillbe)tradedontheLondonStockExchange’smarketforlistedsecurities,thesecondarymarket forVCTshares isgenerally illiquid.Therefore, theremaynotbea liquidmarket(which may be partly attributable to the fact that initial tax reliefs are not available for VCT sharesgenerallyboughtinthesecondarymarketandbecauseVCTsharesusuallytradeatadiscounttoNAV)andShareholdersmayfinditdifficulttorealisetheirinvestment.AninvestmentintheCompanyshould,therefore,beconsideredasalong-terminvestment.Tax reliefon subscriptions for shares inaVCT is restrictedwhere,within sixmonths (beforeorafter)that subscription, the investor had disposed of shares in the same VCT or a VCT which at any timemergeswith that VCT. Existing Shareholders should be aware that the sale of existing Shares withintheseperiodscould,therefore,puttheirincometaxreliefrelatingtotheOfferatrisk.

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EXPECTEDTIMETABLE,OFFERSTATISTICSANDCOSTS

LaunchdateoftheOffer 23August2016

FirstallotmentundertheOffer 16December2016

Deadlineforreceiptofapplicationsforfinalallotmentin2016/17taxyear 12noonon5April2017

Deadlineforreceiptofapplicationsforfinalallotmentin2017/18taxyear 12noonon21August2017

ClosingdateoftheOffer 22August2017

• TheOfferwill closeearlier if fully subscribed.TheBoard reserves the right to close theOffer

earlier and to acceptApplications and issueNew Shares at any time following the receipt ofvalidapplications.

• TheresultsoftheOfferwillbeannouncedtotheLondonStockExchangethroughaRegulatoryInformationServiceproviderauthorisedbytheFinancialConductAuthority.

• Dealing is expected to commence inNew Shareswithin ten business days of allotments and

shareandtaxcertificatesareexpectedtobedispatchedwithin14businessdaysofallotments.

• ThedatessetoutintheexpectedtimetableabovemaybeadjustedbytheCompany,inwhicheventdetailsofthenewdateswillbenotifiedthroughaRegulatoryInformationService.

OfferStatistics

CostsofOffer Upto7.5%ofgrossproceedsofOffer

Initialadviserchargeorintermediarycommission Upto4.5%ofgrossproceedsofOffer

Ongoingadviserchargeorannualongoingcharge

Upto0.5%perannumofthelatestNAVofgrosssumsinvestedintheOfferforupto9years

• ThecostoftheOfferiscappedat7.5%.OctopushasagreedtoindemnifytheCompanyagainstthecostsoftheOfferinexcessofthisamount.

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LETTERFROMTHECHAIRMAN

OctopusTitanVCTplc

33HolbornLondon

EC1N2HT

23August2016

DearInvestor,Withnetassetsof£309millionat30April2016,weareproudtosaythattheCompany is the largestVCT in the UK by some margin, bringing numerous benefits to both our Shareholders and theentrepreneursweback.Yetdespiteitssignificantsize,weremainfirmlycommittedtotheGovernment’sobjectivesfortheVCTindustry,namelysupportingyoungandearlystageUKcompaniestogrow.TheGovernmenthasenactedsignificantchangestotherulessurroundingVCTinvestmentsoverthelastyearor so.Over the twodecadessinceVCTswere introduced, successivegovernmentshaveadjustedthese rules to ensure that VCTmoney continues to be directedwhere it is needed themost.WhilstcausingmorecomplexityfortheManagertodealwith,Iampleasedtosaythatwedon’tanticipateanysignificantchangestoouractivitiesorinvestmentstrategyasaresultofthechanges.Webelievethisisbecause the Company continues to focus its efforts on those companies and entrepreneurs theGovernmentmostwantstosupport,drivingjobcreationandeconomicgrowth.

Asattoday,theresultoftherecentEUreferendumisattheforefrontofmanypeople’sminds.Beneaththeheadlines,giventhelackofanymeaningfulprecedent,notenoughisknownabouttheprocessforwithdrawalfromtheEUanditsimplications.However,givenwhatwedoknowatthisstage,onbalancewe do not believe that the result of the referendumwill have a significant effect on the Company'sbusiness.We remain confident that the entrepreneurs leading our portfolio companies are skilled atnavigatingchangeandmaximisingtheopportunitythatoftencomeswithit.

Followinglastyear’ssuccessfulfundraise,IwouldliketothankShareholdersfortheirsupportinhelpingus to raise nearly £100million. The fundraising was significantly over subscribed and closed to newapplicationson5April2016,nearlyfivemonthsaheadofourscheduledclosedate.Sincethestartofourlastfundraisingon8September2015,excludinginflowsfromfundraisingandcompanysales,wehavealready seena cashoutflowof£79million.This comprised£47million in respectof investments intonewandexistingportfoliocompanies,£17millioninrespectofdividends,£6millioninrespectofsharebuybacksand£9millioninrespectoffundexpenses.Withmany of the portfolio companies continuing their impressive growth, we remain excited aboutboth thewiderangeofnewcompanies thatarekeentoworkwithus,butperhapsmore importantlyabout the50or soentrepreneurialmanagement teamsandcompaniesalreadywithin theCompany’sportfolio.Manyof thesecompaniesnowrequire further fundingtoreachtheir fullpotential.Tobuildbig and valuable businesses, they need the Company to support them at each stage of theirdevelopment.ItisagainstthisbackdropthatwearedelightedtoonceagainofferyouanopportunitytoacquirenewsharesintheCompany.InthelastyearthecompaniesintheTitanportfoliogrewtheirrevenuesbyover40%,generatingnearly£150millionofadditional revenueandcreatingover800new jobs1.AsShareholdersmay remember,

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our Manager tends to start by investing a small amount initially, and then, as a portfolio companygathersmomentum,investmore,increasingourexposuretothehighperformersintheportfolio.Thisstrategyreliesonbeingabletocontinuetofundthecompaniesinourportfolioandhasserveduswellwithanenviableperformancehistorytodate.Whilstthismeanswewillcontinuetoraisemoneytoinvest inourportfolioofbusinesses,wewillnotnecessarilyincreasethenumberofholdingsinourportfoliodramatically.Overtimewewillselectivelyaddnewholdingsandexitexistingcompanies,butourprimaryfocuswillbeondevelopingourexistingholdingstotheir fullpotential. Ithasbecomeclearthathavingone largefund investing inyoungcashhungrycompanieshasprovedsignificantlymoreefficientthanrunningthefiveTitanVCTs. TheOfferTheOffer is intended for investors looking for thepotential togeneratehigh levelsof tax-freecapitalgrowthfromaportfolioofearly-stageUKcompanies.LikemostVCTs,theCompanyaimstoreturnthisinvestment performance back to Shareholders in the form of regular and special tax free dividends.Investors will benefit from immediate exposure to an existing portfolio of around 50 early stagecompaniesoperatinginmanydifferenttechnologysectors,makingitagreatwaytogetbroadexposuretothispartof theUKeconomy.TheCompany isseekingtoraise£70millionundertheOffer,withanover-allotment facility of a further £50million subject to demand. The Offer is conditional upon thepassing by the Shareholders of Resolutions 1 and 5 at theGeneralMeeting to be held at 3 pmon 6October2016at33Holborn,LondonEC1N2HT.TaxbenefitsVCTsareGovernment-ledinvestmentvehiclesdesignedtoincentiviseinvestorsforsupportingsmaller,higher-risk companies. Qualifying investors are entitled to claim a number of tax incentives oninvestments up to £200,000 each year (as more fully set out in Part Two of this document). Theseinclude:

• Income tax relief – investors can claim 30% upfront income tax relief on the amount invested,providedSharesareheldforatleastfiveyears.Forexample,withaninvestmentof£10,000,£3,000canbetakenoffyourincometaxbillalthoughtheamountofincometaxyouclaimcannotexceedtheamountofincometaxdue.

• Tax-freedividendsandcapitalgains-meaningthatanygrowthintheportfoliovalueisnotsubjectto tax. For example, the Company has now paid (or announced for payment) 61p of tax-freedividendsperSharesinceitslaunchin2007.

PerformanceThe Company began investing in 2008, meaning many of its investments have already proven theirresilience and potential to grow, despite an unfavourable economic environment in thewake of thefinancialcrisis.TheCompanywaslaunchedinOctober2007andpaiditsfirstdividendinApril2009.Thismeans it is a mature VCT featuring a number of established and fast growing companies within itsportfolio,suchasSecretEscapes,CalastoneandGrazealongsideanumberofearlystageinvestments.Withastrongtrackrecordofconvertinginvestmentperformanceintotax-freedividendsforinvestors,theCompanyhasprovedpopularwithinvestors.Thediverseportfolioof investee companies continues toperformwell andwearedelighted that theManagerhasbeenabletodeliverastringofhighprofilecompanyexitsrecentlywithSwiftKeybeingsoldtoMicrosoft,VisionDirectbeingsoldtoEssilor,andMagicPonyTechnologybeingsoldtoTwitter,allin2016.TheserealisationsdemonstratethecontinuedsuccessoftheManager’sinvestmentapproachand

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have enabled the Company to pay a 5p special dividend, in addition to the regular dividend, in April2016.Asyouwouldexpect,investinginearlystagecompaniesisnotwithoutitsfailures.Sinceinception,just20%of the early-stage companies that the Company has invested in have failed,whichworks out ataround 14% of total capital invested. These losses are already reflected in the overall performancehistory,clearlydemonstratingthebenefitsofhavingsuchadiverseportfolioofinvestments.BuildingaportfolioofthissizegivesusandourManagergreaterconfidencethatwhenoneofourcompaniesfails,ourotherholdingscancompensate.TheCompanyhasanimpressiveperformancetrackrecord,generatingatotalreturnof65%overthelastfive years to 30 April 2016. This ignores the impact of any upfront fees on the investment return,assumingthestartingvalueisafterupfrontfeeshavealreadybeendeducted.Itdoesincludetheimpactof all ongoing fees and charges and does not take into account any of the 30% upfront tax reliefavailableonnewlyissuedshares.TheCompanycontinuestowinnumerousawardsinrespectofbothitsinvestmentperformanceaswellasitscontributiontotheUK’sentrepreneurialscene.Itwasawarded“VCToftheYear”attheInvestorAllstarsAwards for2014, “BestVCT”at the2015“What Investment”awardsaswellas “BestVCT”atInvestmentWeek’sInvestmentCompanyoftheYearAwards2015.

NewinvestmentopportunitiesAs well as follow-on investment in this established portfolio, the Ventures team at Octopus havedevelopedaveryhealthypipelineofnewinvestmentopportunities.PrevioushighprofilesuccessstorieswithcompaniessuchasZooplaPropertyGroup,Graze.comandSecretEscapesalongsidemorerecentnamesSwiftKey,MagicPonyTechnologyandVisionDirectattractmoreofthebestentrepreneurswhowanthelptogrowtheirowncompanies.Theinvestmentteamnowreviewsmorethan1,000potentialinvestment opportunities in detail each year. Thismeans they can be highly selective and pick thosetheybelieveofferthebestopportunitiesforinvestment.Theytypicallymeetwitharound250ofthosecompaniesandonly invest intobetween6and10newcompanieseachyear.TheBoardbelieves thattheportfolioiswellpositionedtocontinuedeliveringstronginvestmentperformancetothoseinvestorsabletotakealong-termviewoninvestinginwell-runsmallercompanies.TheVenturesteamatOctopusTheteamthatmanagestheCompanyiscurrently18strong,featuringinvestmentprofessionals,investorrelations specialists and investment support, plus five Operating Venture Partners. As well as acombined investmentexperienceof150years,theybringtogetherawiderangeofbusinessskillsandindividualinsights.

Before joining Octopus, many were well-established in other industries, such as consumer goods,professionalservicesandtechnology.Someoftheteamwerealsoentrepreneursthemselves,growingtheir own businesses before sellingwhen the timingwas right. Experience like this simply cannot betaught.Itgivestheteamunparalleledinsightintowhatittakestobuildasuccessfulbusiness.

Usually one of the Ventures team sits on the board of the companies the Company invests in. Thisallowsthemtoplayaprominentroleinthecompany’songoingdevelopment.

WhilemostoftheOctopusVenturesteamisbasedinLondon,theyalsoopenedanofficeinNewYorkin2016, giving the teaman internationalpresence.Manyofourportfolio companies view theUSas anattractive growthmarket. For example,whenGraze.com, a Titan portfolio company, entered theUS,theyprojectedanadditional£20millioninrevenueinthefirstyear.TheNewYorkofficeaimstomake

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theprocessofexpandingintotheUSaseasyaspossible.It’sjustanotherwayinwhichtheCompanycanhelpsupportentrepreneurstobig,globalbusinesses.

TheVentures team is supportedby theirwidernetwork,offeringhelp ineverything fromrecruitmentandconsultancytocorporateconnectionsandtheOctopusVenturePartnersplayakeyroleinthis.Thisnetwork of around 90 entrepreneurs and business people typically have the opportunity to investalongsidetheCompany.SomeevenworkwiththeVenturesteamatOctopustohelpprovidehands-onsupport, practical advice and professional connections to the companies we invest in. Our VenturePartners include the founders of businesses such as Innocent Drinks and Betfair, aswell as past andpresentseniormanagementfromcompaniessuchasGoogle,Orange,PayPalUK,Virgin,Vodafone,IBM,andPaddyPower.

This unique combination of resource allows Octopus to add real value to the companies that theCompany invests in – both financially and through sound business advice. As a result, the team hasestablished itselfasoneof the leadingearlystageventurecapital teams in theUK.Theyhaveproventheir ability to find great companies, to back thewinners both financially and non-financially, and tohelpnegotiatewiththesomeoftheworld’s leadingtechnologycompanies,suchasGoogle,MicrosoftandTwittertosecureexitsatveryprofitablevaluationsfortheCompany'sinvestors.

NextstepsAnapplicationformcanbefoundontheCompany’swebsite:octopusinvestments.com/titan.TheTermsandConditionsofsubscriptionforNewSharesaresetoutonpages74to80.Iwouldliketothankallofour existing Shareholders for their enduring support of theUK's small businesses and entrepreneurs,andwelcomenewinvestorstotheCompany.YourssincerelyJohnHustlerChairmanOctopusTitanVCTplc1)RelatestorevenuesfortheyearstoDecember2014and2015andjobnumbersfortheyearsto31March2015and2016,sourcedfromtheportfoliocompanies.

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PARTONE:THEOFFER

IntroductiontotheOffer SettingupaDirectDebit TermsoftheOffer UseofFunds IntermediaryCharges InvestmentPolicyandNewInvestmentPolicyConflictsofInterest PerformanceHistoryOctopusTitanVCTinnumbersInvestorTestimonialsDividendPolicyandDividendReinvestmentScheme BuybackPolicy TheBoard TheInvestmentTeamManagementRemuneration ExampleInvestmentsExampleExit

IntroductiontotheOffer

VCTswere introducedbytheUKGovernment in1995toencourageindividualsto invest inUKsmallercompanies. According to the Association of Investment Companies (AIC), almost £458 million wasinvestedinVCTsinthe2015/2016taxyear,thelargestamountforadecade.An investment under the Offer will provide individuals with exposure to a diversified portfolio ofunquotedsmallercompanieswiththeaimofgeneratingreturnsoverthemediumtolongterm.ThenetproceedsoftheOfferwillbeinvestedinaccordancewiththeCompany’s investmentpolicy,assetoutbelow.TheCompanyisseekingtoraise£70millionundertheOffer,withanoverallotmentfacilityofafurther£50million.Theminimuminvestmentis£3,000.Thereisnomaximuminvestment.MultipleApplicationsarepermitted.TheOffer is conditional upon the passing by the Shareholders of Resolutions 1 and 5 at theGeneralMeeting.TheOfferwillremainopenuntil22August2017unlessfullysubscribedatanearlierdateandtheBoardreservestherighttoclosetheOfferearlierandtoacceptapplicationsandissueNewSharesatanytimefollowing the receipt of valid applications. New Shares issued will rank pari passu with the existingSharesfromtheirdateofissue.SettingupaDirectDebit

Forthefirsttime,investorscannowpurchasetheCompany'ssharesbymonthlydirectdebit.

Investorssimplyneedtocompletethe‘directdebit’sectionintheApplicationForm.Octopuswillcollectthisamountfromaninvestor'sbankaccountviadirectdebitonoraroundday14ofeverymonth.

At roughly three-monthly intervals, this money will be used to purchase New Shares. Share and taxcertificateswill be sent shortly after the regular share allotmentdateswhich are currently scheduledfor:December,March,JuneandAugust.

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If the fundraiseprovespopularand looks tobe reachingcapacityearly, theCompanywill stop takingnewapplicationsbutwillkeepcollectingmoneyandallottingsharesforexistingdirectdebitcustomers.ThisaimstocontinueuntiltheOfferformallycloseson22August2017.

AtthecloseoftheOfferOctopuswillbeintouchtoinforminvestorswhethertheCompanywillbere-opening fornew investment, and to see if investorswould like theirdirectdebit to continueunderanewshareoffer.

Direct debits can be cancelled at any time by contacting your bank or building society or by callingOctopuson08003162295.InvestorswillneedtoletOctopusknowbeforethefirstdayofthemonthinorderforthemtocancelthatmonth'scollection.ThefulldirectdebitguaranteeisavailableatthebackoftheApplicationForm.

TermsoftheOffer

ThefulltermsandconditionsapplicabletotheOfferaresetoutonpages74to80.

UseoffundsThefundsraisedundertheOfferwillbeinvestedinaccordancewiththeCompany’sinvestmentpolicy.SomeofthefundsraisedwillbeusedtoinvestintonewportfoliocompaniesandsomewillbeusedtofurthersupporttheCompany’sexistingportfolio.IntermediaryCharges

DetailsaresetoutintheTermsandConditionsoftheOfferonpages74to80.

InvestmentPolicyandNewInvestmentPolicyInvestmentPolicyTheinvestmentpolicyoftheCompanyisasfollows:The Company’s focus is on providing early stage, development and expansion funding to unquotedcompanieswith theCompanymakinga typical initial investmentof£0.1million to£5millionandwillcomprise a portfolio of largely unquoted companies, predominantly focussed within the followingsectors:●Technology●Media●Telecoms●Consumerlifestyleandwell-being●EnvironmentTheDirectorscontroltheoverallriskoftheportfoliobyensuringthattheCompanyhasexposuretoadiversified range of companies from a number of different sectors. In order to limit the risk to theportfoliosthatisderivedfromanyparticularinvestment,nomorethan15%oftheamountinvestedbyshareholdersintheCompanywillbeinvestedinanyoneunquotedcompany(includingbothQualifyingandNon-QualifyingInvestments).Non-QualifyingInvestments

III:3.4

III:8.1

III:5.1.2

XV3.1XV:1.1

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An active approach is taken to manage the cash prior to investing in qualifying companies. As theCompanyhas reached its investment target forHMRC, themajorityof the remainderof fundswillbeinvestedinmoneymarketfundsandotherfunds.Byinvestingaproportionofitsassetsintotheseotherfunds, some exposure to a broad range of AIM-quoted andmainmarket listed smaller andmedium-sized companies is gained, whilstmaintaining liquidity within the Company. The Companymay alsomakeNon-QualifyingInvestmentswheretheInvestmentManagerbelievesthattherisk/returnprofileisconsistentwiththeoverallobjectiveoftheCompany,whichmayinclude,fromtimetotime,makingasmallnumberofinvestmentsorfurtherinvestmentsincompanieswhichmeettheprofileofaQualifyingInvestmentbutwouldotherwisenotbeaQualifyingInvestment.QualifyingInvestmentsNow that the Company is through its initial Qualifying Investment period, the investment profile isexpectedtobe:●75-85%inQualifyingInvestments,primarilyinunquotedcompanies● 15-25%incash,moneymarketsecuritiesandfundsmanagedbyOctopusandotherNon-QualifyingInvestments.TheCompanywillnotborrowmoneyforthepurposesofmakinginvestments.TheinvestmentdecisionsmademustadheretotheHMRCqualificationrulesassetoutinPartTwo.Inconsideringaprospectiveinvestmentinacompany,particularregardismadeto:●thestrengthofthemanagementteam;●evidenceofhighmarginproductscapableofaddressingfast-growingmarkets;●thecompany’sabilitytosustainacompetitiveadvantage;●theexistenceofproprietarytechnology;and●thecompany’sprospectsofbeingsoldorfloated,usuallywithinthreetofiveyears.NewInvestmentPolicyTheCompanywas launchednineyearsago in2007andsincethenits investmentpolicyhasremainedunchanged. With the benefit of experience, the continuing evolution of the early stage investmentenvironmentandrecentchanges inVCT legislation, theCompanyfeels it isappropriatetorefreshtheinvestmentpolicy.WhilsttheCompanyhasmadechangestotheterminologyitappliestotheinvestmentsectors,inrealitythis is simply a change in the language used to describe the sectors rather than a change to theinvestment strategy itself. Instead of defining separately: Technology, Media, Telecoms, ConsumerLifestyleandWell-being,andEnvironment, theCompanyhassimplifiedthis to"a rangeof technologysectors"whichitbelievesissimplertocommunicateandmorereflectiveofthewaytheCompanythinksaboutitsinvestments,bothhistoricandfuture.TheunderlyingportfoliohasnotchangedandthetypeofcompaniestheCompanywillinvestinwillnotchange. TheCompanyhasalsomadechangestothetypesofnon-QualifyingInvestmentsitwillmake,whichispurelytoalignwithrecentVCTlegislativechanges.TheCompanyhasalsoincreasedthetoprangeofthe%ofQualifyingInvestmentsthatitwillaimtoholdfrom85%to90%.This,again,isreflectiveofchangesinlegislationrestrictingnon-QualifyingInvestments,meaningthatthebalancemayshiftslightlytowardsholdingmoreQualifyingInvestments. Themost significant change is the removal of the passage restricting the use of borrowing tomakeinvestments.TheCompanyhasnointentiontomakeuseofborrowingforthispurposeintheimmediatefuture;howeveritwouldliketoaligntheinvestmentpolicywiththeArticlesandremoveanyconstraints

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placeduponitbythisclausetoprovidemoreflexibilityintothefutureshouldanysuchneedordesirearise.TheCompanydoesnotbelievethatthechangesoutlinedwillaffecthowtheCompanyismanagedonadaytodaybasisandwillnotaffectthediversityoftheCompany'sportfolio.Subject to the passing of Resolution 3 at theGeneralMeeting, the new investment policywill be asfollows:The Company’s focus is on providing early stage, development and expansion funding to unquotedcompanies. The Company typicallymakes an initial investment of £0.1million to £5million and willmake further follow on investments into existing portfolio companies. The intention is to hold aportfoliooflargelyunquotedtechnologycompanies.TheDirectorscontroltheoverallriskoftheportfoliobyensuringthattheCompanyhasexposuretoadiversifiedrangeofinvesteecompaniesfromanumberofdifferenttechnologysectors.Inordertolimitthe risk to theportfolio that isderived fromanyparticular investment, at thepointof investmentnomorethan15%oftheCompanybyvaluewillbeinanyoneinvestment.AnyborrowingbytheCompanyforthepurposesofmakinginvestmentswillbeinaccordancewiththeCompany'sarticlesofassociation.Theinvestmentprofileisexpectedtobe:●75-90%inVCTqualifyinginvestments,primarilyinunquotedcompanies●10-25%innon-VCTqualifyinginvestmentsorcash.Non-VCTQualifyingInvestmentsAnactiveapproach is taken tomanageany cashheld,prior to investing inVCTqualifying companies.After theCompanyhasensured itsatisfiesallVCT investmentqualificationtargetsrequiredbyHMRC,themajorityoftheremainingcashwillbe invested inaccordancewithHMRCrulesforNon-QualifyingInvestments. Currently this includes liquid AIFs, UCITS or othermoneymarket funds including thosemanagedbyOctopus.VCTQualifyingInvestmentsInvestmentdecisionsmademustadheretoHMRC’sVCTqualificationrules.Inconsideringaprospectiveinvestmentinacompany,particularregardismadeto:●thestrengthofthemanagementteam;●large,typicallyglobal,addressablemarkets;●theinvesteecompany’sabilitytosustainacompetitiveadvantage;●theexistenceofproprietarytechnology;●visibilityoverfuturerevenuesandrecurringincome;and●thecompany’sprospectsofbeingsoldorfloatedinthefuture,atasignificantmultipleontheinitialcostofinvestment.Nomaterial changesmaybemade to theCompany’s investment policy described abovewithout thepriorapprovalofshareholdersbythepassingofanOrdinaryResolution.TheDirectorswillcontinuallymonitortheinvestmentprocessandensurecompliancewiththeinvestmentpolicy.ConflictsofInterest

The Company has built strong relationships with many of the companies in which it invests, andsometimesusesdifferentsourcesoffundingtoinvestinthesamecompanies.Thiscanpresent"conflictsofinterest"asexplainedbelow.

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InvestingalongsideotherOctopusfundsTheOctopusVenturesteamwillusuallyinvestfundsfromtheCompanyalongwithfundsfromOctopusEureka Enterprise Investment Scheme, the Octopus Venture Partners and potentially other Octopusmanagedfunds,suchasOctopusEclipseVCTplc,andsometimesevenOctopusitself.Throughthisco-investment,investorsintheCompanycanhaveaccesstodealsthatmaynothavebeenpossiblewithoutbeingpartofthelargerdealwithotherOctopusinvestors.TheroleofOctopusemployeesTheCompanyoftenplacesanOctopusemployeeontheboardofthecompaniesitinvestsin,eitherasanobserveroradirector.ThismeanstheCompanyisabletocloselymonitortheinvestmentithasmadeon behalf of the Company's investors. It does however mean that as company directors, thoseemployeeshaveobligationstoallshareholdersofthecompany,andnotjusttheCompany'sinvestors.Whencouldconflictsofinterestbeharmfultoinvestors?SometimestheCompanyisunableto investasmuchmoneyas itwouldlike,duetorestraintssuchasthesizeofacompanyorthenumberofsharesavailable.Intheseinstances,theamountsbeinginvestedfrom different Octopus vehicles must be managed carefully. Similarly, when investments held by anumberofdifferentinvestorscometobesold,theinterestsofallpartiesmaynotbefullyaligned.TheCompanyhas agreedpolicies andprocesses in place tomake sure this is done fairly, but sometimes,investorsmaystillbelimitedintheamountstheycaninvestorrestrictedinthetimingofanexit.FeesforourservicesOctopusmayreceivefeesfromthecompaniesthattheCompanyinvestsin(forexample,whenmakingor selling an investment in a company, as well as for appointing a representative to the board ofdirectors).Suchfeesdonottypicallyexceed1.5%ofthetotalamountinvestedannuallybyallOctopusmanagedfunds(includingtheCompany).Thistypicalfeeisbasedonaninvestmentof£5millionandaholdingperiodoffiveyears.ThecostsofalldealsthatdonotproceedtocompletionaretypicallybornebyeitherthecompanyseekingfundingorbyOctopus.ManagingconflictsTheCompanyhasanumberofcontrolsinplacetomanageconflictsofinterest:• TheVenturesInvestmentCommitteemakessureinvestmentdecisionsareinthebestinterestsof

investors,includinghowpotentialconflictsofinterestaremanaged;

• Incaseswheretherearealargenumberofconflictsofinterestortheyareparticularlysignificant,proposalsarereviewedbyaconflictscommittee,which isresponsibleforensuringconflictsarehandledappropriately;

• As the Company is a publicly listed company, the Board is required to act independently andrepresentShareholders’bestinterestsatalltimes.

PerformanceHistory

The Company targets high levels of capital growth from a portfolio of early-stage UK companies.However,likemostVCTs,ratherthanincreasingthevalueofitsshares,theCompanyaimstoreturnthisinvestmentperformancebacktoShareholdersintheformofregularandspecialtaxfreedividends.

ThecompanieswithintheOctopusTitanportfoliogrewrevenuesbyover40%inthelastyeargenerating£147minadditionalrevenue.Overthissametimeperiodoverathirdofthecompaniesintheportfoliogrewtheir revenuesbymorethan50%.This relates to revenues for theyears toDecember2014and2015andissourcedfromtheportfoliocompanies.Thecompanieswithintheportfolioalsocreatedmorethan800jobsintheyeartoApril2016.

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FiveYearDiscreetPerformance

TheperformanceinformationaboveshowsthetotalreturnoftheCompanyforthelastfiveyearsto30April,theCompany’s interimaccountingperiod.TheannualtotalreturnfortheCompanyiscalculatedfromthemovementinnetassetvalue(NAV)overtheyearto30April,withanydividendspaidoverthatyearthenaddedback.TherevisedfigureisdividedbytheNAVatthestartofthatyeartogettheannualtotalreturn.TheNAVisthecombinedvalueofalltheassetsownedbytheVCTafterdeductingthevalueofitsliabilities(suchasdebtsandfinancialobligations).

Performanceshownisnetofall feesandcosts.Theannualdividendyield iscalculatedbydividingthedividendspaidperannumbytheNAVatthestartoftheperiod.

2)Note:Thisassumesthe£5,000investedisthevalueoftheSharesheldafterupfrontfeeshavealreadybeentakenandthattheinvestmenthasbeenheldforfiveyearsupuntil30April2016.Thecumulativetotal return shown above does takes into account all ongoing fees and costs and is inclusive of anydividendspaid.Itdoesnotincludeanyofthe30%incometaxreliefavailableontheinitialinvestment,which investorswouldhavebeenable to retainprovidedtheShareswereheld foraminimumof fiveyears.

Past performance is not a reliable indicator of future results andmaynot be repeated. TheNAVperSharemaybehigherthantheShareprice,which is thepriceyoumayget for theSharesontheopenmarket.On27November2014, theTitanVCTsmerged intoOctopusTitanVCT2plc,whichwas thenrenamedOctopusTitanVCTplc.

OctopusTitanVCTinnumbers

• £1.2billion:ThecurrentZooplaPropertyGroupmarketvalue.OctopusTitanVCTinvestedin2009andpartiallyexiteditin2014whenitfloatedontheLondonStockExchange(source:

LondonStockExchange,31July2016).

• £309million-ThesizeofOctopusTitanVCT,makingittheUK’slargestVentureCapitalTrust

(source:Octopus,30April2016).

• £147million-TheamountofadditionalrevenuegeneratedbyOctopusTitanVCT'sportfoliocompanies.ThisrelatestorevenuesfortheyearstoDecember2014and2015sourcedfrom

theportfoliocompanies.

• 1,000+-InvestmentopportunitiesreviewedbytheVenturesteameachyear.Thisleadsto

around250meetingswithentrepreneursandmanagementteams.

• 800+-ThenumberofnewjobscreatedbyOctopusTitanVCT'sportfoliocompanies(12monthstoApril2016sourcedfromtheportfoliocompanies).

• 50-ThetypicalnumberofcompaniesinOctopusTitanVCT’scurrentportfolio.

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• 6-10-Averagenumberofinvestmentsintonewcompanieseachyear.

• 4-ThenumberofmajortechnologycorporationsthathaveboughtanOctopusTitanVCT

portfoliocompany:Amazon,Google,MicrosoftandTwitter.

Pastperformance isnota reliable indicatorof future results.All statisticsare sourced toOctopus,23August2016,unlessotherwisestated.

Investortestimonials

“I’vebeenaninvestorwithOctopussince2013andhavebeenpleasedwithboththeinvestmentreturnfromtheirfundsandwiththeinvestorcareserviceprovidedbytheirstaff.Lastyear,IwaslookingforaninvestmentwithalittlemoreupsidepotentialandmadetwoinvestmentswithOctopus’TitanVCT.I’vebeenveryhappysofarwiththeperformanceofmyOctopusinvestments,theirdividendpolicyandthewaytheteamkeep investorsuptodatewithperformanceof fundstheyholdaswellaswithnewsofnewissues.IplantoinvestagainwithOctopusthisyearandwillprobablychoosetheirTitanVCTagain.”

John -Age51, technology strategy consultant, financially comfortable, first invested inOctopus TitanVCTinDecember2015

"Ihavebeenpleasedwithearlydividends,particularlyfromtheSwiftKeysaleandtheyear-enddividendannouncement.Iwouldrecommendtootherfriendsorfamily."

Nigel - Age 58, corporate director, financially comfortable, first invested in Octopus Titan VCT inDecember2015

DividendPolicyandDividendReinvestmentScheme

VCTsareabletomakedividendpaymentsfromdistributablereserves.InordertoretainqualificationasaVCT,theCompanymaynotretainmorethan15%oftheincomeitreceivesfromsharesandsecurities.

The amount of these dividends depends, amongst other things, on the level of income and capitalreturns generatedby theQualifying Investments, theperformanceof the non-Qualifying Investmentsand the amount raised by the Offer. In the medium to long term the size of dividends paid toShareholderswilldependlargelyonthelevelofprofitsrealisedfromthedisposalofinvestments.

TheCompanyistargetingaregularannualdividendof5pperannumwiththepotentialtopayspecialdividendsasinvestmentsarerealisedatasignificantprofit.TodatetheCompanyhasannouncedtotaldividendsof61pperSharetoinvestors.TheCompanyhasadoptedaDividendReinvestment SchemeunderwhichShareholdersaregiven theopportunity toreinvest futuredividendpaymentsbywayofsubscription fornewShares.Subject toaShareholder’spersonalcircumstances,SharessubscribedforundertheDividendReinvestmentSchemeshouldobtaintheusualVCTtaxadvantagesassetoutabove.

InvestorsundertheOffermayelecttoparticipateintheDividendReinvestmentSchemebycompletingthedividend reinvestment sectionof theApplication Form, and shouldbe aware that itwill apply totheirentireholdingofNewSharesandanyexistingShares.ParticipationintheDividendReinvestmentSchemebyaShareholdercanbecancelledatanytimewithwrittenauthorityfromtheShareholderorbycallingOctopuson08003162295.

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BuybackPolicy

TheBoardintendstobuybackSharesatuptoa5%discounttotheprevailingnetassetvalue.TheBoardbelievesthismakesaninvestmentintheCompanyattractivetobothcurrentandfutureShareholders.Allbuybacksaresubject to theCompanyhavingsufficient fundsavailableandareat thediscretionoftheBoard.TheremaybeperiodsduringayearwheretheCompanywillbeprohibitedfrombuyingbackShareswhichmayincludetheperiodsofuptofourmonthsafteritsfinancialyearendanduptothreemonthsafteritshalfyearend.

TheBoard

The Board comprises four directors, the majority of whom are independent of the Manager. TheDirectors operate in a non-executive capacity and are responsible for overseeing the investmentstrategy of the Company. The Board has wide experience of investment in both smaller growingcompaniesandlargerquotedcompanies.

JohnHustler(Chairman)

John joinedPeatMarwick,nowKPMG, in1965andbecameaPartner in1983.Since leavingKPMG in1993 to form Hustler Venture Partners Limited, he has advised and been a director of a number ofgrowing companies. He was chairman of Northern Venture Trust plc and RenaissanceRe SyndicateManagementLimiteduntilDecember2014andDecember2015respectivelyandischairmanofHygeavctplc.HewasalsoamemberoftheCouncilofTheInstituteofCharteredAccountantsinEnglandandWalesandchairmanofitsCorporateFinanceFacultyfrom1997-2000andwasamemberoftheCounciloftheBritishVentureCapitalAssociationfrom1989-1991.

MatthewCooper

MattisthechairmanofOctopus.PriortojoiningOctopus,MattwasthePrincipalManagingDirectorofCapital One Bank (Europe) plc where he was responsible for all aspects of the company’s strategicdirectionandday-to-dayoperations inEurope.He ledtheUKportionofthebusinessfromstart-uptotwomillioncustomers,generatingrevenuesofover£275millionandemployingover2,000people.Mattis also chairman of Imaginatik plc, ClearlySo Limited and Tandem Bank Limited and a non-executivedirectorofVouchedforLimitedandOctopusEclipseVCTplc.

MarkHawkesworth

Mark retired as an investment partner atNova CapitalManagement Limited in January 2010, havingspentmorethan25yearsintheprivateequityindustry.PriortojoiningNova,hewasaseniorpartneratBaringPrivateEquityPartnersandalsospent12yearsatLazard.Markoriginallytrainedasanelectricalengineer and spent his early career working for international engineering companies such as TaylorWoodrow, Trafalgar House and BICC/Balfour Beatty. Mark is currently the Treasurer of The GordonFoundationwhichsupportsasuccessfulStateboardingschool.

JaneO’Riordan

Jane is theManagingDirectorof Yellowwoods (previouslyCapricorn)AssociatesUK Limited, aprivateequityandventurecapitaladvisoryfirmwhereshehasbeen involved inthestrategicdevelopmentofcompanies such as Nando’s, Gourmet Burger Kitchen, Pizza Express/Gondola and Broker Network aswellasmanyothers.PriortojoiningCapricornin1997,JanewasadirectorwithBraxtonAssociates,thethenstrategic consultingdivisionofDeloitte&Touche. Inaddition toover20yearsofprivateequity,venture capital and management consulting experience, Jane worked for three years with British

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Aerospaceasaspacecraftsystemsengineer.JanehasafirstclassBScinmechanicalengineeringandanMBAfromHarvardBusinessSchool.

TheInvestmentTeamOctopus Investments Limited was launched in 2000 by three founders who wanted to create aninvestmentcompanythatputitscustomersfirst.Todayithasmorethan440employeesand£5.8billionin assets undermanagement (Source:Octopus investments Limited,August 2016). Theyhave tens ofthousands of clients and have built market-leading positions in tax-efficient investment, smallercompanyfinancing,renewableenergyandhealthcare.OctopuslauncheditsfirstVCTin2002andisnowthe UK’s largest investment manager, managing over £600 million of VCT money on behalf of over25,000investors(Source:OctopusInvestmentsLimited,August2016).TheOctopusVenturesteamaretheinvestmentmanagersfortheCompanyandcomprisethefollowingmembers:AlexMacphersonAlex has been in the same position as many entrepreneurs having started, built and sold his ownbusiness.HefoundedKatalystVentureswithhiscolleaguesin2000,creatingtheprivateangelnetworkwhichwouldlaterbeknownastheOctopusVenturePartners.Oversevenyears,AlexledthebusinessasCEOuntil itssaletoOctopus inAugust2007,providingsuccessionplansfortheexecutiveteamastheTitanseriesofVCTswereraisedtoinvestalongsidethenewlybrandedOctopusVenturePartners.Since2007,theamountofassetsthattheVenturesteammanageshasrisenfromapproximately£20millionto in excess of £500 million at a time when the economy has seen the worst financial crisis in ageneration.Alex is chairmanof theOctopusVentures InvestmentCommittee, remaining actively involved in newdeal transactions, portfolio management, exits and new fund creation. Under Alex’s leadership, theVenturesteamatOctopushasestablisheditselfasoneoftheleadingEuropeanventurecapitalhouses.JoOliverJobecameaVenturePartner in2005.Having run severalbusinessesofhisown, frompublishing surfbookstopropertydevelopment,andhavingmadenumerousangel investments, includingmanyasanOctopusVenturePartner,JojoinedasadirectorintheVenturesteaminMay2009.Heisinvolvedintheteam’s investment process, portfolio management and fundraising activity, as well as sitting on anumberoftheboardsofinvesteecompaniesintheportfolio,includingAmplience,CurrencyFair,Iovox,PropertyPartnerandSwiftKey,whichwasacquiredbyMicrosoftearlierthisyear.

Joqualifiedasacharteredaccountant in1995.HespentsevenyearsworkingasaresearchanalystatNatWest, Merrill Lynch and Lehman Brothers, where he led a toprated equity research teamspecialisingintheEuropeanmobiletelecomssectorincludingcompaniessuchasVodafone,OrangeandO2.

AlanWallace Alanbringsover30yearsofexperienceinmarketing,generalmanagementandstrategicplanningtotheselectionanddevelopmentofmanagementteams.PriortofoundingKatalystwithhiscolleaguesanditssubsequentsale toOctopus Investments,heheldseniormarketingpositions in fastmovingconsumergoodscompanies:SaraLee,RankHovisMcDougall,CambridgeNutritionandGreatUniversalStores.Hisexperienceasa generalmanager includesManagingDirectorofCambridgeNutrition,DairyCrest andPremierBrands.AlanhasalsobeenaNon-ExecutiveDirectorofLingarden.Alan holds a B.A.(Hons) in Economics (Liverpool University) and a PhD in Business Administration(UniversityofManchester).

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AlliottColeHaving spent over eight yearsmaking investments in London andworking closelywith the portfolio,AlliottisnowbasedintheNewYorkOfficeofOctopusVentures.HismainroledaytodayistohelpourportfolioofinvestmentsresearchtheUSmarketandthenplanandexecutetheirmarketentrythere.HebeganhiscareerinCorporateLawwithAshurstLLPandhasheldboardpositionsinanumberofOctopusportfoliocompanies includingGraze.com,SecretEscapes,Rangespan(acquiredbyGoogle),TrialReach,andConversocial,amongothersinrecentyears.HeholdsaMastersinClassicsfromOxfordUniversity.EyalRabinovichEyal Joined the team in 2016, and focuses on the assessment of investment opportunities, dealorigination and ongoing portfoliomanagement. He has an active interest in businesses focussing onmobile,digitalmarketing,bigdataandAI.Eyal brings 13 years of experience in the technology industrywith 8 years of experience in businessdevelopment, product management and marketing, fundraising more than $17 million from globalinvestors,establishingstrategicpartnershipsandbuildinganetworkof70millionmobileplayers.Priorto joiningOctopusVentures,Eyalco-foundedPlayScape,a leadingmobilegamepublisherwherehemanagedtheworld-widemarketingandbusinessdevelopmentactivitiesasVPBusinessAffairs.Asanentrepreneur with extensive experience in developing and marketing consumer-facing products, heworkedwithdeveloperstodistributeandcommercialisetheirappsandgames.Priortothat,Eyalservedasanofficer inanelite IDFNavyunit, inaddition tobeingaSeniorSoftwareEngineeratHedge-TechFinancialEngineering,andVeriFone.EyalholdsanMBAfromINSEAD.FredericLardiegFredericjoinedtheteamin2012.Heisresponsibleforsourcing,executingandmanagingventurecapitaldealsandfocusesoninvestmentsinmobile,internetanddigitaltechnologies.In2000,FredericwasoneoftheearlyemployeesofDigitalRum,astart-upthatraisedmorethan$20million from leading European and US venture capital firms. The company sold mobile commercesolutionstothemajortelecommunicationcompanies inEurope,expandedinthreedifferentcountriesandgrewtomorethan100employees.DigitalRumwasacquiredbyVelti,amobilemarketingcompany,in2006.Priorto joiningOctopus,FredericworkedatVodafoneVentures,theventurecapitalarmofVodafone,wherehe ledVodafone’s investment inVouchercloud,the leadingmobilecouponingplayer intheUK.PreviousexperiencealsoincludesworkinginthecorporatestrategyteamforSonyEricsson,themobilehandsetmanufacturernowcalledSonyMobile.FrederichasanMScinIndustrialEngineeringandanMBAfromINSEAD.GeorgeWhitehead Georgehasworkedintheventurecapitalindustryfortenyearsandhasbuiltuprelationshipswithmanyof Europe’s leading investors and entrepreneurs. He is focused on developing Octopus’ network ofentrepreneursandtheOctopusVenturePartners.

George joinedOctopus inJuly2011fromNESTAInvestments’£50millionVentureCapitalFundwherehe held the position of Business Development Director and ran a portfolio of programmes aimed atsupporting growth companies.Hebeganhis career as an investmentmanager atOxford Innovations,where he managed the Oxford Investment Opportunity Network (OION), one of Europe’s mostsuccessfulprivate investmentnetworks,beforemovingontosuccessfullyturnaroundandmanagetheincubationsprogrammefor theUniversityofToronto’sTechnologyTransferOffice.George isalsoco-founder and Chairman of the Angel Cofund, a £100millionGovernment backed fund focused on co-investingwithangelinvestors.

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LukeHakes LukejoinedOctopusatthebeginningof2009.Aformerscientistandtechnologyconsultant,Lukehasaparticular interest in deep technology opportunities, although he has experience of working with anumberofearlystagebusinessesacrossarangeofdifferentsectors.Lukehasledinvestmentsintoandserved on the boards of a number of investee companies including Evi (acquired by Amazon),MagicPony(acquiredbyTwitter),EveSleepandMIRACLamongstothers.

LukeholdsadegreeinBiochemistryandBiotechnology,aMastersinComputationalBiologyandaPhDinComputationalGenetics.

MalcolmFergusonMalcolm joined the Ventures team in 2013, focused on the assessment of investment opportunities,dealoriginationandongoingportfoliomanagement.PriortojoiningOctopus,Malcolmspentanumberofyearsintheinvestmentbankingindustry,firstlywithintheTMTteamofBankAmericaMerrillLynchinLondon and then subsequently at GP Bullhound, a leading boutique investment bank, focussingexclusivelyontechnologybusinesses.Malcolm splits his time between the assessment of investment opportunities, deal origination forinvestmentsbetween£250,000 to£25millionandongoingportfoliomanagement.Malcolm isaNon-ExecutiveDirectorofvariousportfoliocompanies including;Metrasens,SeguraSystems,SofarSounds,Stratajet and Trialreach. Malcolm holds a first class degree in BBA Management from LancasterUniversity.OliverBirchOliver joined theVentures team in 2015.He splits his time between screening early stage deal flow,carryingoutduediligenceandworkingwithportfoliocompanies.

PriortojoiningOctopus,OliverwasCTOofEntrepreneurFirst,anangelbackedstart-upthatbuilttoolstoenablefinancialtraderstoovercomeemotionalbiasesandtooptimisetheirrisk.Priortostartinghisownbusiness,OliverstudiedComputerScienceatCambridgewherehealsospenttimedevelopingiOSappsaswellasworkingasasoftwareengineerinthewirelessteamatCambridgeConsultants.

RebeccaHunt RebeccajoinedtheVenturesteamin2012,focusedontheassessmentofinvestmentopportunities,dealoriginationandongoingportfoliomanagement.Havingspentanumberofyearsadvisingcompaniesontheir M&A activity, her specialist interests are the consumer marketplaces, eCommerce, retail andfashiontechnologyaswellashavingakeeninterestinthefinancialtechnologysector.

Prior to joining Octopus, Rebecca spent five years working in the Corporate Finance department atDeloitte, firstly in the Transaction Services department and later in the Corporate Finance Advisorydivision,whereshewasinvolvedinadiverserangeofM&Aandcapitalmarketdealsacrossarangeofsectors.

Rebecca is a qualified chartered accountant, and has a first class honours degree in Accounting andFinancefromtheUniversityofSouthampton.

SamanthaLingSamantha joined the Ventures team at Octopus in 2008 while the first Titan VCTs were still beingestablished. She focuseson investor relationsand theoperationof theVentures team,managing thevarious stakeholders in the funds managed by the team (including the Venture Partners and theirindividualportfolios),aswellasvariousinvestmentandportfolioprocessesasawhole.

PriortojoiningOctopus,Samanthaspentanumberofyearssupportingandworkingwithinternationalteamsandclients in theoil andgasand software industriesatPVMOil and thenDetNorskeVeritas,implementingand leading internationalprocessesandprojects, including leading the rolloutofanewglobal CRM system. She also spent time as a project coordinator at the Royal College of Nursing.SamanthaholdsaCFAUKLevel3CertificateinInvestmentManagement.

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SimonKing Simon joined the team at the beginning of 2012 and focuses on early stage deal flow, screeninginvestment opportunities and performing preliminary due diligence. He has an active interest inbusinessesfocussingonEdTech,IoTandMachineLearning.WithintheOctopusportfolio,SimonworkscloselywithSurreyNanoSystems,OrigamiEnergy,Trafi,WaveOpticsandSmartKem.Before joining Octopus, Simonwas a research scientist investigating novelmaterials for photovoltaicapplications at Imperial College in London. Simon holds an MA and MSc in Physics and a Ph.D. inMolecularElectronics.SimonAndrewsSimon is responsible for theportfoliomanagementof the team’searly stage investments,andsitsonthe boards of a number of companies in the portfolio. He has a particular expertise in software andservicecompanieshavingspenttenyearscoveringthesectorasaresearchanalystatJefferies,LehmanBrothers,MerrillLynchandBNPParibas.HejoinedOctopusin2010havingspentfouryearsworkingatSiliconValleyBankwhereheworkedwitha number of venture backed companies across a wide range of sectors providing debt and equityfundingsolutionstothem.SimongraduatedfromtheUniversityofSouthamptonandGrenobleUniversityandisafluentFrenchspeaker.

WillGibbsWilljoinedtheteamin2013.HeisnowbasedintheNewYorkofficeofOctopusVenturesandsplitshistime between deal origination for investments and helping portfolio companies looking tointernationalisetotheUS.

Prior to joiningOctopus,Will set-upandscaledanorganicspiritscompanyandararebreedpig farm,andholds adegree inAncientHistory from theUniversityofOxford.Will now sits on theBoardof arangeofportfoliocompaniesincludingChronext,PermutiveandBehaviosec.

The team is completed by a support team of three, and complemented by a number of VenturePartners.

ManagementRemunerationFulldetailsoftheManager'sremunerationaresetoutatparagraph8.5ofPartFive.

ExampleInvestments

Propertypartner:investinresidentialpropertyattheclickofabuttonResidentialpropertyistheUK’slargestassetclass,valuedatmorethan£5trillion,whilethebuy-to-letmarket involves transactions ofmore than £20 billion each year. But investing in property involves alargeinitialcashoutlayandaheavyadministrativeburden.PropertyPartnermakesiteasyforanyonetoinvestinresidentialproperty,removingtheseburdensandallowingpeople to investat theclickofabutton. It’sanonlinecrowdfundingplatform for residentialrentalproperty,enablinganyonetobuyshares inpropertiesfromas littleas£50,tradetheirholdingseasilyonlineandearnanestimatedreturnof10%peryear.Inthe18monthssincelaunchinginJanuary2015,PropertyPartnerhasenabledthepurchaseofover230propertiescostinginexcessof£35million.“We’re passionate about making it easy, affordable and even enjoyable for anyone to invest inresidentialproperty.We’redelightedtohavethebackingandsupportofanexperiencedinvestorsuchasOctopustohelpusachieveourvisionofmakingpropertyaccessibletoall.“

DanielGandeshafounderandchiefexecutiveofficer,PropertyPartner

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Tails.com:tailor-madefood,deliveredtoyourdoor,forhealthierhappierdogsIn theUK, thedog foodmarket isalreadyworth£1.6billionandtheonlinemarket forpetsupplies isgrowing at an impressive rate. The Ventures team were close to the founders of tails.com havingsuccessfullybacked someof thematGraze.com,andprior to thatat Lovefilm.This seasoned teamofentrepreneurssawtheopportunitytobuildabusinessdeliveringdogfoodtocustomerseverymonthintheperfectquantity,withfreeongoingdeliveries.Whatmakestails.comdifferentisthatittailorseachbagof foodtoprovidethe idealnutritionforeachdogbasedon its individualneedsandpreferences.Thisisabigmarketwithafifthofpetownersalreadyfeedingtheirpetsaccordingtospecificdiets.

Orders are managed online and customers can pause, delay or cancel their orders at any time.Customersarealertedbyemailwhenthenextdeliveryisbeingprepared,andit’sdeliveredstraighttotheir doorstep, so nomore heavy bags to carry home from the shops. Tails.com is earning a strongreputation in customer satisfaction averaging 9.7 out of 10 for customer satisfaction after amassingalmost 4,000 reviews (Source: uk.trustpilot.com/review/tails.com). The company also continues toperformwell:nowfeedingover40,000dogsandgrowingrevenueby5x in thetwelvemonths to July2016.“At tails.comwe are changing the lives of dogs and their owners for the better andOctopus haveplayed a key role in our success to date. Beyond simply investing capital they have supported usthrough introductions to other portfolio companies and industry experts, access to trainingprogrammesandevents,andvaluableinputinboardmeetings.”

JamesDavidsonco-founderandchiefexecutiveofficer,Tails.com

TrialReach:savinglivesbyspeedinguptheclinicaltrialprocessHealthcareandpharmaceuticalcompaniesuseclinicaltrialstodevelopnewmedicinesandtreatments.However,itcanbehardtofindenoughpeoplewillingtoparticipateinthesetrials.Infact,80%ofclinicaltrialsaredelayedorclosedbecauseresearcherscannotfindenoughpatientswithspecificdiseaseprofiles.Notonlydoesthiscostthesecompanies’timeandmoney,itcanalsodelayimportantresearch.TrialReachhasdevelopedtheworld’slargestmachine-readableclinicaltrialdatabase,whichsuccessfullymatcheswillingparticipantswithlocaltrialsappropriatetotheircondition.Withnodirectcompetitorsoperatingonthesamescale,TrialReachhasmadegoodprogresssinceouroriginalinvestmentin2013andnowhasagreementsinplacewithanumberoftheworld’slargestpharmaceuticalcompanies,includingPfizerandNovartis.InconjunctionwithJune2016’sCancerMoonshotSummitinWashington,DC,theWhiteHousealsorecentlyannouncedthatTrialReachwillbesupportinganewplanforre-designinghowpatientsandoncologistsfindandlearnaboutcancerclinicaltrialsthroughitsnewtrialmatchingplatform.“OctopushasbeenagreatinvestorforTrialReach.Theyunderstandwhatittakestobuildandscaleaglobal business and, accordingly, they are focused on the right metrics for growth. Our Boardrepresentative is unfailingly supportive and he can always be counted on for constructive andinsightfulinput.”

KeithLovellchieffinancialofficer,TrialReach

Stratajet:onlinesearchandbookingforprivatejetsWith700operatorsand2,400aircraft,theprivateaircraftindustryinEuropealoneisworth$5billioninpotentialannualbookings.Butitisalsohighlyinefficient.Almosthalfofallflightshavenopassengersonboardbecausetheplanesareeitherbeingrepositionedforfutureflightsorreturninghome.

Stratajet is helping private jet operators run their fleets more efficiently. Its technology allowspassengers to checkwhataircraftandairportoptionsareavailable, andbook theirprivate jetonline.Thisshouldleadtoreducedairfaresandallowprivatejetoperatorstocompetewiththemoreexpensivebusinessclassandfirstclassseatsoncommercialflights.Thecompanyisdevelopingwellwithupto1.4millionquotesgeneratedperday,up toa60%price savingonsome flightsand30%of its customersbeingnewtoprivateaviation.

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“Octopus has played a pivotal role in building Stratajet’s success. With an entrepreneur-centricapproach,Octopushassupportedourvisionofdisruptingtheprivateaviationindustry.Throughourpartnership,wehavebeenable to takeStratajet to thenext level andwork towardsachievingourlong-termvision.”

JonnyNicolfounderandchiefexecutiveofficer,Stratajet

ExampleExitSwiftKey:aportfoliosuccessstoryIn 2008, Jon Reynolds and Ben Medlock had a very simple idea: typing on mobile phones was tooclumsy, and there had to be a betterway.With funding fromOctopus Titan VCT, the company theyfoundedbecameaglobalsuccess.

Today,hundredsofmillionsofpeoplearoundtheworld,andmanyoftheleadingmobilemanufacturers,relyonthelanguagepredictiontechnologyJonandBencreated.Evenifyouhaven’theardofSwiftKey,theapptheydeveloped, there’sagoodchance ithashadan impactonyour life,andthe livesof thepeoplearoundyou.SwiftKeyusersacross300millionmobiledeviceshavesavedanestimated10trillionkeystrokesacross100differentlanguages.

SwiftKeyandOctopusOctopus Titan VCT made its first ‘seed’ investment in SwiftKey in 2010, before its app was evenlaunched.Asusual,we started small, and continued to invest larger sumsas the company started torealiseitspotential.

SwiftKeystartedwithjustJonandBen,butby2016itwasemployingaround160people,andmakingasignificantcontributiontotheUKeconomy.Thisexpansionwassupportedbyadditionalfundingatkeystagesofitsgrowth.

ReachingcriticalmassSwiftKeywasalreadyGoogle’smostsuccessful‘paidfor’apptwoyearsrunningbeforeitwaslaunchedonApple’s iOSoperatingsystemin2014. It rapidlybecameApple’snumberonefreeapp. InFebruary2016,SwiftKeywasacquiredbyMicrosoftCorporation.ThisresultedinstrongreturnsforOctopusTitanVCTinvestorsandisimportantforthreereasons:

• First,significantexitsoftenmeanstheVCTcanpayoutspecialdividendstoit’sinvestors.InthecaseofSwiftKey,aspecialdividendof5ppersharewaspaid,inadditiontotheregularannualdividend,toeveryOctopusTitanVCTinvestor.

• Second,therestoftheproceedscanbeputtogooduse–eitherbyinvestinginnewcompaniesorbysupportingourexistingportfoliocompaniesastheygrowanddevelop.

• Third, VCTswere introduced precisely to help fund entrepreneurial companies like SwiftKey.SwiftKey is a ‘poster child’ for the benefits of VCT funding, and an inspiring example toambitiousentrepreneurseverywhere.ForOctopusTitanVCT,successcanoftenbreedfurthersuccess,andnewsofSwiftKeyhasseenmanytalentedentrepreneursapproachustoseehowwecanhelpthembuildtheirownbusinesses

TheCompanyhasbeenthrilledtoplayapart inthesuccessofSwiftKey,andproudtohavegivenVCTinvestors theopportunity toshare in thegrowthofaBritishentrepreneurial successstory.Ofcourse,notevery company inwhich theCompany investswill goon tobeas successful as SwiftKey, and thefailureofsomeearlystageportfoliocompanies is tobeexpected.Butover theyears, just20%of theearly-stagecompaniesthattheCompanyhasinvestedinhavefailed,whichworksoutataround14%oftotalcapitalinvested,allofwhicharefactoredintothefullperformancehistory.

“Aswith any business there are some greatmoments but also challenges along theway.Octopusstoodbyus as a companyat somekeymoments and their backingwasan important factor inouroverallsuccess.”

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JonReynoldschiefexecutiveofficerandoneofthefoundersofSwiftKey.

Past performance is not a reliable indicator of future results. Company quotes sourced July 2016.Companyexamplesarefor illustrativepurposesonly.Theyshouldnotbeconsideredasaninvestmentrecommendation.

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PARTTWO:TAXBENEFITSANDCONSIDERATIONSFORINVESTORS

GeneralThefollowingparagraphsapplytotheCompanyandtoindividualsholdingSharesasaninvestmentwhoaretheabsolutebeneficialownersofsuchShares,andwhoareresidentintheUK.Theymaynotapplyto certain classes of individuals, such as dealers in securities. The following information is based oncurrentUKlawandpractice,issubjecttochangestherein,isgivenbywayofgeneralsummary,anddoesnotconstitutelegalortaxadvice.Ifyouareinanydoubtaboutyourposition,orifyoumaybesubjecttotaxinajurisdictionotherthantheUK,youshouldconsultyourfinancialadviser.Thetaxreliefssetoutbelowareavailableto individualsaged18oroverwhoreceiveNewSharesandwhere the New Shares acquired are within the investor’s annual £200,000 limit. The reliefs are notavailableforinvestmentsinexcessof£200,000pertaxyear.TheCompanyhasobtainedapprovalasaVCTunderChapter3ofPart6ITA2007.TheBoardconsidersthattheCompanyhasconducteditsaffairsandwillcontinuetodosotoenableittoqualifyasaVCT.TaxPositionofInvestorsundertheOfferThetaxreliefssetoutbelowarethosecurrentlyavailabletoindividualsaged18oroverwhosubscribeforNewSharesandwillbedependentonpersonalcircumstance.Whilstthereisnospecificlimitontheamountofanindividual’sacquisitionofsharesinaVCT,taxreliefswillonlybegiventotheextentthatthetotalofan individual’ssubscriptionsorotheracquisitionsofshares inVCTs inanytaxyeardonotexceed£200,000.Qualifyinginvestorswhointendtoinvestmorethan£200,000inVCTsinanyonetaxyearshouldconsulttheirprofessionaladvisers.TaxBenefitsforVCTinvestors1.IncomeTax1.1InitialIncomeTaxreliefAninvestorcanacquireNewSharesofuptoamaximumof£200,000undertheOfferineachof2016/17and 2017/18 tax years. The relief is subject to an amount which reduces the investor’s income taxliabilityforthetaxyeartonil.Eachapplicationcreatesanentitlementtoincometaxreliefof30%oftheamountinvested.ToretainthatrelieftheNewShareshavetobeheldfor5years.The table below has been prepared for illustrative purposes only and does not form part of thesummaryof thetaxreliefscontained in thissection.Thetableshowshowthe initial incometaxreliefavailable can reduce the effective cost of an investment of £10,000 in a VCT to only £7,000, by aqualifyinginvestorsubscribingforVCTshares: Effectivecost TaxreliefInvestorunabletoclaimanytaxreliefs £10,000 NilVCTinvestorabletoclaimfull30%incometaxrelief £7,000 £3,000

Tax reliefon subscriptions for shares inaVCT is restrictedwhere,within sixmonths (beforeorafter)that subscription, the investor had disposed of shares in the same VCT or a VCT which at any timemergeswith that VCT. Existing Shareholders should be aware that the sale of existing Shares withintheseperiodscould,therefore,puttheirincometaxreliefrelatingtotheOfferatrisk.

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1.2DividendreliefDividendspaidonordinaryshares inaVCTare freeof incometax.VCTstatuswillbewithdrawn if, inrespectof shares issuedonorafter6April2014,adividend ispaid (orother formsofdistributionorpaymentsaremadetoinvestors)fromthecapitalreceivedbytheVCTfromthatissuewithinthreeyearsof the end of the accounting period in which shares were issued to investors. Dividends paid fromrealisedprofitsmaybemadewithoutlossofVCTstatus.1.3WithdrawalofreliefRelieffromincometaxonasubscriptionforVCTshareswillbewithdrawniftheVCTsharesaredisposedof (other thanbetween spouses)within five yearsof issueor if theVCT loses its approvalwithin thisperiod.DividendreliefisnotavailablefordividendspaidinanaccountingperiodduringwhichtheVCTlosesitsapproval.2.CapitalGainsTax2.1RelieffromcapitalgainstaxonthedisposalofVCTsharesDisposingofaVCTshareataprofitdoesnotcreateachargeablegain for thepurposesofUKCapitalGainsTax.Similarly,disposingatalossdoesnotcreateanallowablelossforUKCapitalGainsTax.3.WithdrawalofapprovalIfacompanywhichhasbeengrantedapprovalasaVCTsubsequentlyfailstocomplywiththeconditionsfor approval as a VCT, approval may be withdrawn or treated as never having been given. In thesecircumstances, reliefs from income taxon the initial investmentare repayableunless lossofapprovaloccursmorethanfiveyearsaftertheissueoftherelevantVCTshares.In addition, relief ceases to be available on any dividend paid in respect of profits or gains in anaccountingperiodduringorafterwhichVCTstatushasbeenlost.AnygainsontheVCTsharesuptothedatefromwhichlossofVCTstatusistreatedastakingeffectwillbeexempt,butgainsthereafterwillbetaxable.4.Othertaxconsiderations4.1ObtaininginitialtaxreliefsThe Company will provide each investor with a tax certificate which the investor may use to claimincometaxrelief.Todothis,aninvestormusteitherobtainataxcodingadjustmentfromHMRCunderthePAYEsystem,orwaituntiltheendofthetaxyearandusetheirselfassessmenttaxreturntoclaimrelief.4.2ShareholdersnotresidentintheUKShareholdersnotresidentintheUKshouldseektheirownprofessionaladviceastotheconsequencesofmakingandholdinganinvestmentintheCompany,astheymaybesubjecttotaxinotherjurisdictionsaswellasintheUK.5.TaxPositionoftheCompanyAVCThastosatisfyanumberofteststoqualifyasaventurecapitaltrust.Asummaryofthesetestsissetoutbelow.5.1QualificationasaVCTTo qualify as a venture capital trust, a companymust be approved as such by HMRC. To maintainapproval,theconditionssummarisedbelowmustcontinuetobesatisfiedthroughoutthelifeoftheVCT:

(i) theVCT’s incomemusthavebeenderivedwhollyormainly fromsharesandsecurities (inthe case of securities issued by a company, meaning loans with a five-year or greatermaturityperiod);

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(ii) noholding inacompany (other thanaVCToracompanywhichwould, if its shareswerelisted,qualifyasaVCT)by theVCTmay representmore than15%,byvalue,of theVCT’stotalinvestmentsatthetimeofinvestment;

(iii) the VCT must not have retained more than 15% of the income derived from shares orsecuritiesinanyaccountingperiod;

(iv) the VCT must not be a close company. Its ordinary share capital must be listed on aregulated European market by no later than the beginning of the accounting periodfollowingthatinwhichtheapplicationforapprovalismade;

(v) at least70%,byvalue,of its investments isrepresentedbysharesorsecuritiescomprisingQualifyingInvestments;

(vi) for funds raised before 6 April 2011, have at least 30%, by value, of its QualifyingInvestments represented by holdings of ordinary shareswhich carry no present or futurepreferentialrightstodividends,returnofcapitaloranyredemptionrights;

(vii) for funds raised after 5 April 2011, have at least 70%, by value, of the VCT’s QualifyingInvestmentsin“eligibleshares”,thatisordinaryshareswhichcarrynopreferentialrightstoassets on a winding up and no rights to be redeemed although they may have certainpreferentialrightstodividendssolongasthatrightisnoncumulativeandisnotsubjecttodiscretion;

(viii) theVCTmustnotmakeaninvestmentinacompanywhichcausesthatcompanytoreceivemore than£5millionof StateAid investment in the12monthsendedon thedateof theinvestment;

(ix) theVCTmustnotreturncapitaltoshareholdersbeforethethirdanniversaryoftheendoftheaccountingperiodduringwhichthesubscriptionforsharesoccurs.

(x) no investment can be made by the VCT into a company which causes that company toreceivemore than£12million (£20million if the company is deemed to be a KnowledgeIntensive Company) of State Aid investment (including from VCTs) over the company’slifetime.AsubsequentacquisitionbythecompanyofanothercompanythathaspreviouslyreceivedStateAidRiskFinancecancausethelifetimelimittobeexceeded;

(xi) noinvestmentcanbemadebytheCompanyinacompanywhosefirstcommercialsalewasmorethan7yearspriortodateofinvestment,exceptwherepreviousRiskFinanceStateAidwasreceivedbythecompanywithin7years(10yearsforaKnowledgeIntensiveCompany)orwhereaturnovertestissatisfied;

(xii) no funds received from an investment into a company can be used to acquire anotherexistingbusinessortrade;and

(xiii) theVCTmustnotmakeanon-QualifyingInvestmentotherthanthosespecifiedinsection274ITA2007.

“Qualifyinginvestments”comprisesharesorsecurities(includingloanswithafiveyearorgreatermaturity period but excluding guaranteed loans and securities) issued by unquoted tradingcompanieswhichexistwhollyormainly for thepurposeof carryingononeormorequalifyingtrades. The trade must be carried on by, or be intended to be carried on by, the investeecompanyoraqualifyingsubsidiaryatthetimeoftheissueofthesharesorsecuritiestotheVCT(and by such company or by any other subsidiary inwhich the investee company has not lessthana90%interestatall timesthereafter).Acompany intendingtocarryonaqualifyingtrademustbegintotradewithintwoyearsoftheissueofsharesorsecuritiestotheVCTandcontinueitthereafter.Thedefinitionofaqualifyingtradeexcludesdealinginproperty,shares,securities,commoditiesorfutures.Italsoexcludesbanking,insurance,receivingroyaltiesorlicencefeesincertaincircumstances,leasing,theprovisionoflegalandaccountingservices,farmingandmarketgardening, forestry and timber production, property development, shipbuilding, coal and steelproduction, operating ormanaging hotels or guest houses, generation of electricity, power orheat,productionoffuel,nursingandresidentialcarehomes.Thefundsraisedbytheinvestmentmustbeusedforthepurposesofthequalifyingtradewithincertaintimelimits.

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Aqualifyinginvestmentcanalsobemadeinacompanywhichisaparentcompanyofatradinggroupwhere the activities of the group, taken as awhole, consist of carryingononeormorequalifying trades. Investee companies must have a permanent establishment in the UK. Theinvesteecompanycannotreceivemorethan£5millionfromVCTsorotherStateAidinvestmentsources during the 12 month period which ends on the date of the VCT’s investment. Theinvestee company’s gross assets must not exceed £15 million immediately prior to theinvestmentand£16millionimmediatelythereafter.Theinvesteecompanymusthavefewerthan250employeesor500employeesinthecaseofaKnowledgeIntensiveCompany.NeithertheVCTnor any other company may control the investee company. At least 10% of the VCT’s totalinvestmentintheinvesteecompanymustbeineligibleshares,asdescribedabove.Thecompanycannotreceivemorethan£12million(£20millionifthecompanyisdeemedtobeaKnowledgeIntensiveCompany)ofStateAid investment (includingfromVCTs)overthecompany’s lifetime.Thecompany’s first commercial salemustbenomore than7years (10years foraKnowledgeIntensive Company) prior to the date of the VCT’s investment, except where previous RiskFinance State Aid was received by the company within 7 years or where a turnover test issatisfied. Funds received from an investment by a VCT cannot be used to acquire anotherexistingbusinessortrade.Companies whose shares are traded on AIM are treated as unquoted companies for thepurposes of calculating qualifying investments. Shares in an unquoted company whichsubsequentlybecomes listedmaystillberegardedasaqualifying investment fora further fiveyearsfollowinglisting,providedallotherconditionsaremet.

5.2TaxationofaVCTVCTsareexemptfromcorporationtaxonchargeablegains.Thereisnorestrictiononthedistributionofrealised capital gains by a VCT, subject to the requirements of company law. VCTswill be subject tocorporation taxontheir income(excludingdividendsreceived fromUKcompanies)afterdeductionofattributableexpenses.

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PARTTHREE:FINANCIALINFORMATIONONTHECOMPANY

AuditedfinancialinformationontheCompanyispublishedintheannualreportsfortheyearsended31October2013,31October2014and31October2015andunauditedinformationintheinterimreportsforthesixmonthperiodsended30April2015and30April2016.

TheannualreportsreferredtoabovewereauditedbyJamesCowperLLP,3WesleyGate,Queen’sRoad,Reading,Berkshire,RG14AP.Allreportswerewithoutqualificationandcontainednostatementsundersection498(2)or (3)oftheCA2006.Theannualreports fortheyearsended31October2013and31October 2014 were prepared in accordance with United Kingdom Accounting Standards (UnitedKingdom Generally Accepting Accounting Practice), the fair value rules of the CA 2006 and theStatement of Recommended Practice ‘Financial Statements of Investment Trust Companies’ and theannual report for the year ended31October 2015 and the interim reports for the 6monthperiodsended30April2015and30April2016werepreparedinaccordancewithFinancialReportingStandard102.TheannualreportscontainadescriptionoftheCompany’sfinancialcondition,changesinfinancialconditionand resultsofoperation foreach relevant financial yearand thepagesof these referred tobelow,togetherwiththeinterimreportsreferredtoabove,arebeingincorporatedbyreferenceandcanbeaccessedatthefollowingwebsite:

octopusinvestments.com

The Company and the Directors confirm that the Company’s most recent two years’ financialinformation(theannualreportfortheyearended31October2014havingbeenpreparedunderUnitedKingdomGenerallyAcceptingAccountingPracticeandtheannualreportfortheyearended31October2015havingbeenpreparedunderFinancialReportingStandard102)hasbeenpresentedandpreparedinaformwhich isconsistentwiththatwhichwillbeadoptedintheCompany’snextpublishedannualfinancialstatements(whichwillbepreparedunderFinancialReportingStandard102)havingregardtoaccountingstandards,policiesandlegislationapplicabletosuchannualfinancialstatementsinsofarasthere are no material differences between the financial statements for these years prepared underthesetwoaccountingframeworks.

Where these documents make reference to other documents, such other documents, together withthose pages of the annual and interim reports that are not referred to below, are not relevant toinvestorsandarenotincorporatedintoanddonotformpartofthisdocument.Suchinformationincludesthefollowing: 31October

201331October

201431October

201530April2015 30April2016

Description AnnualReport

AnnualReport

AnnualReport

HalfYearReport

HalfYearReport

BalanceSheet

Page50 Page52 Page54 Page16 Page14

IncomeStatement(orequivalent)

Page47 Page49 Page53 Page14 Page12

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Statementshowingallchangesinequity(orequivalentnote)

Page49 Page51 Page55 Page15 Page13

CashFlowStatement

Page51 Page53 Page56 Page17 Page15

AccountingPoliciesandNotes

Page53 Page55 Page57 Page19 Page16

Auditor’sReport

Page44 Page46 Page50 n/a n/a

Suchinformationalsoincludesoperating/financialreviewsasfollows: 31October

201331October

201431October

201530April2015 30April2016

Description AnnualReport

AnnualReport

AnnualReport

HalfYearReport

HalfYearReport

PerformanceSummary

Page1 Page1 Page1 Page6 Page2

ResultsandDividends

Page7 Page8 Page9 Page7 Page4

InvestmentPolicy

Page5 Page6 Page7 n/a n/a

Outlook Page8 Page10 Page11 Page10 Page7

Manager’sReview

Page15 Page15 Page18 n/a n/a

PortfolioSummary

Page18 Page19 Page22 Page11 Page9

BusinessReview

Page10 Page11 Page13 n/a n/a

ValuationPolicy

Page18 Page19 Page23 n/a n/a

Asat30April2016,thedatetowhichthemostrecentunauditedfinancialinformationontheCompanyhasbeendrawnup,theCompanyhadunauditednetassetsof£309,060,000.

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PARTFOUR:INVESTMENTPORTFOLIOANDPRINCIPALINVESTMENTSOFTHECOMPANY

TheinvestmentportfoliooftheGroupasatthedateofthisdocumentrepresentingmorethan50%ofthe NAV of the Company is as follows (the valuations being the unaudited valuations as at 30 April2016):

InvestmentsheldbytheCompany

Investments sector

Investmentcostat30April2016

(£’000)

Unrealisedprofit/(loss)

(£'000)

Carryingvalueat30April2016

(£'000)ZenithHoldingCompanyLimited Other 24,843 8,638 33,481

SecretEscapesLimited Travel 15,636 3,973 19,609

SourceableLimited Ecommerce 7,550 4,347 11,897

UniplacesLimited Property 5,847 4,781 10,628

AmplienceLimited Technology 9,905 18 9,923

SofarSoundsLimited Music 7,819 1,108 8,927

LondonHouseExchangeLimited Property 5,175 2,922 8,097

ZynstraLimited Technology 6,190 787 6,977

MiraclLimited Technology 8,341 (1,404) 6,937

ConversocialLimited Technology 4,157 2,381 6,538

Other* NA 91,211 (12,113) 79,098

Total

186,674 15,438 202,112

* includes 42 investments (Adbrain Limited, Affectv Limited, Aframe Media Group Limited (InAdministration), Artesian Solutions Limited, Behaviometrics AB, Big Health Limited, Bowman PowerLimited, BridgeU Corporation, Chronext AG , CurrencyFair Limited, Ecrebo Limited, Elliptic EnterpriseLimited, e-Therapeutics plc, Eve Sleep Limited, Excession Technologies Limited, Hubbub DeliveriesLimited, Iovox Limited, Kabbee Exchange Limited, Leanworks Limited, Mailcloud Limited, MetrasensLimited, Michelson Diagnostics Limited, Mi-Pay Group plc, Origami Energy Limited, Oxcis AviationLimited, Permutive Inc., Phase Vision Limited (In Liquidation), Phasor Inc., Seedcamp III LP, SeguraSystemsLimited,SemafoneLimited,ShopaLimited(InLiquidation),SmartkemLimited,Streetbees.comLimited,StreethubLimited,SurreyNanoSystemsLimited,TailscoLimited,TheFactionCollectiveSA,TrafiLimited,TrialReachLimited,UltraSoCTechnologiesLimited&WaveOpticsLimited)

Since 30 April 2016 there has been one disposal, the proceeds of which totalled £6 million and 12acquisitions,theinvestmentcostofwhichtotalled£21million.

Since30April2016therehasbeennosignificantchangeinthevalueoftheCompany'sportfolio.

InvestmentsheldbyZenithHoldingCompanyLimited

ZenithHoldingCompanyLimitedhasaholdinginOctopusZenithLP,anOctopusmanagedfund,whichholdsstakes inSecretEscapes,ZooplaPropertyGroup,NatureDelivered(Graze)andCalastone,whichwereformerlyheldbytheCompany,Titan1andTitan3.

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Founded inApril 2007,Graze is theUK’s first company todeliver natural, highenergy foodsbypost,straight to the home or office. Customers can select Graze boxes created by the company or placeordersforpersonalisedassortmentsoffoods.ThecompanyhasofficesintheUKandtheUS.

Calastone is the global fund transaction network. More than 810 customers in 24 domiciles areprocessing domestic and cross-border across Calastone’s transaction network. Calastone is part ofFintech50andEuropeanFintechandisoneoftheUKGovernmentTechCityFutureFiftycompanies.

Launched in 2008, Zoopla Property Group Plc owns and operates some of the UK’s leading onlinepropertybrands includingZoopla.co.ukandPrimelocation.com.Over16,500estateagentand lettingsagent branches across the UK advertise on the company’s websites each month, attracting over 40millionvisitorsamonthandgeneratingover2millionenquiriespermonthforthememberstate/lettingagentsandpropertydevelopers. Inadditiontooperating itsownwebsites,ZooplaPropertyGroupPlcexclusivelypowersthepropertysearchfacilityonanumberofotherwebsites intheUK includingTheTimes,TheTelegraph,Independent,EveningStandard,TheDailyMail,Homes&Property,AOL,MSNandHomes24.ThecompanylistedonthePremiummainmarketoftheLondonStockExchangeon23June2014.

Secret Escapes offers exclusive rates (up to 70% off) on members-only flash sales for luxury travel.SecretEscapeshasofficesinLondon,Sweden,Spain,Poland,GermanyandtheUS.

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PARTFIVE:ADDITIONALINFORMATIONONTHECOMPANY

1) INCORPORATION

1.1 TheCompanywasincorporatedandregisteredinEnglandandWaleson12October2007undertheCA1985withregisterednumber6397765asapubliccompanylimitedbysharesandwiththename Octopus Titan VCT 2 plc. On 27 November 2014 the Company changed its name to itspresentname.

1.2 On 22October 2007, the Registrar of Companies issued the Companywith a certificate under

Section117oftheCA1985entitlingittocommencebusiness.1.3 Octopuswas incorporatedandregistered inEnglandandWaleson8March2000undertheCA

1985with registerednumber3942880as aprivate company limitedby shares. TheaddressofOctopus’registeredofficeis33Holborn,LondonEC1N2HTanditstelephonenumberis08003162295.Theprincipal legislationunderwhichOctopusoperates is theActsand regulationsmadethereunder.OctopusisauthorisedandregulatedbytheFinancialConductAuthority.

2) REGISTEREDOFFICESANDPRINCIPALLEGISLATION

2.1 The registered office of the Company is at 33 Holborn, London EC1N 2HT and its telephone

numberis08003162295.2.2 TheprincipallegislationunderwhichtheCompanyoperatesandwhichgovernsitssharesisthe

Actsandregulationsmadethereunder.3 SHAREANDLOANCAPITAL3.1OntheincorporationoftheCompany,twoordinaryshareswereissuednilpaidtothesubscribers

tothememorandumoftheCompany,OctopusInvestmentsNomineesLimitedandOCSServicesLimited.

3.2 By ordinary and special resolutions passed by the Company on 2October 2015, the Company

authorised the Directors in accordance with Section 551 CA 2006 to allot Shares up to anaggregatenominalamountof£11,450,000(representingapproximately50.6%ofthe Shares inissueasat7September2015)anddisappliedthepre-emptionprovisionsofSection561oftheCA2006 in respectofanysuchallotment, ineachcase foraperiodexpiring18months thereafter(unlesspreviouslyrevoked,variedorextendedbytheCompanyingeneralmeeting).

3.3 ThefollowingresolutionswillbeproposedattheGeneralMeeting:

1. that, inadditiontoexistingauthorities, thedirectorsoftheCompanybeandherebyaregenerally and unconditionally authorised in accordance with Section 551 of theCompanies Act 2006 (the “Act”) to exercise all the powers of the Company to allotSharesandtograntrights tosubscribe foror toconvertanysecurity intoSharesupto an aggregatenominal amountof £14.5million (representing approximately 45.0%oftheShares in issueasat22August2016),providedthattheauthorityconferredbythis Resolution 1 shall expire on the date falling 18 months from the date of thepassing of this Resolution (unless renewed, varied or revoked by the Company ingeneralmeeting)but so that thisauthority shallallowtheCompany tomake,beforethe expiry of this authority, offers or agreements which would or might requireSharestobeallottedorrightstobegrantedaftersuchexpiry;

2. that, in addition to existing authorities the directors of the Company be and hereby aregenerally and unconditionally authorised in accordance with Section 551 of the Act toexercise all the powers of the Company to allot and issue Shares in connectionwith theCompany’s dividend reinvestment scheme up to an aggregate nominal amount of £3.1

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million (representing approximately 9.6% of the Shares in issue as at 22 August 2016),providedthattheauthorityconferredbythisResolution2shallexpireon thedate falling18monthsfromthedateofthepassingofthisResolution(unlessrenewed,variedorrevoked by theCompany in general meeting) but so that this authority shall allow theCompanytomake,beforetheexpiryofthisauthority,offersoragreementswhichwouldormightrequireSharestobeallottedorrightstobegrantedaftersuchexpiry;

3. that, theproposedchangeto theCompany’s investmentpolicy,detailsofwhicharesetoutonpage6andPartIVofthecircularissuedtotheCompany’sshareholdersdated23August2016(the“Circular”)beapproved;

4. that, the articles of association produced to the meeting, and for the purpose ofidentification initialedby theChairman,beadoptedas thearticlesofassociationoftheCompany;

5. that, the directors of the Company be and hereby are empowered pursuant toSections570and573oftheActtoallotormakeoffersoragreementstoallotequitysecurities (whichexpression shall have themeaning ascribed to it in Section560(1)of theAct) for cash pursuant to the authority given pursuant to Resolution 1 or bywayofasaleoftreasuryshares,asifSection561(1)oftheActdidnotapplytosuchallotment,providedthatthepowerprovidedbythisResolution5shallexpireonthedate falling 18 months from the date of the passing of this Resolution (unlessrenewed,variedorrevokedbytheCompanyingeneralmeeting)andprovidedfurtherthatthispowershallbelimitedto:

(a) the allotment and issue of Shares up to an aggregate nominal value of £14.5millionpursuanttooffer(s)forsubscription;and

(b) the allotment and issue of Shares up to an aggregate nominal valuerepresenting10%oftheissuedSharecapital,fromtimetotime,

where the proceeds may in whole or part be used to purchase Shares in theCompany;

6. that, the directors of the Company be and hereby are empowered pursuant toSections570and573oftheActtoallotormakeoffersoragreementstoallotequitysecurities (whichexpression shall have themeaning ascribed to it in Section560(1)of theAct) for cash pursuant to the authority given pursuant toResolution 2 or bywayofasaleoftreasuryshares,asifSection561(1)oftheActdidnotapplytosuchallotment,providedthatthepowerprovidedbythisResolution6shallexpireonthedate falling 18 months from the date of the passing of this Resolution (unlessrenewed,variedorrevokedbytheCompanyingeneralmeeting)andprovidedfurtherthat thispowershallbe limited to theallotmentandissueofsharesinconnectionwiththeCompany’sdividendreinvestmentscheme;

7. that, the Company be and hereby is empowered to make one or more marketpurchaseswithin themeaningofSection693(4)of theActof itsownShares (eitherfor cancellation or for the retention as treasury shares for future re-issue ortransfer)providedthat:

(a) the aggregate number of Shareswhichmay be purchased shall not exceed 45millionShares;

(b) theminimumpricewhichmaybepaidperShareisthenominalvaluethereof;

(c) themaximumpricewhichmaybepaidperShareisanamountequaltothehigherof(i) 105% of the average of the middle market quotation per Share taken from theLondon Stock Exchange daily official list for the five business days immediatelypreceding the day on which such Share is to be purchased; and (ii) the amountstipulatedbyArticle5(6)oftheMarketAbuseRegulation;

(d) theauthorityconferredbythisResolutionshallexpireontheconclusionof theannual general meeting of the Company to be held in 2018 (unless renewed,

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variedorrevokedbytheCompanyingeneralmeeting);and

(e) the Company may make a contract to purchase Shares under the authorityconferredby thisResolutionprior to theexpiryof suchauthoritywhichwill ormaybeexecutedwhollyorpartlyaftertheexpirationofsuchauthorityandmaymakeapurchaseofsuchShares;

8. that,subjecttothesanctionoftheHighCourttheamountstandingtothecreditofthesharepremiumaccountof theCompany,at thedateanorderismadeconfirmingsuchcancellationbytheCourt,beandherebyiscancelled;and

9. that,subjecttothesanctionoftheHighCourttheamountstandingtothecreditofthecapital redemption reserve of theCompany, at the date anorder ismade confirmingsuchcancellationbytheCourt,beandherebyiscancelled.

3.4 AtthedateofthisdocumenttheissuedfullypaidsharecapitaloftheCompanyis:

Classofshares

Nominalvalue

Issued(fullypaid)

£ Number

OrdinaryShares

£0.10 32,238,883.9 322,388,839

3.5 The issued fully paid share capital of the Company immediately after the Offer has closed(assumingtheOffer is fullysubscribed, includingtheoverallotmentfacility,with120,967,741NewSharesbeingissuedatanOfferPriceof99.2p)willbeasfollows:

Classofshares

Nominalvalue

Issued(fullypaid)

£ Number

OrdinaryShares

£0.10 44,335,658 443,356,580

3.6 The issued fully paid share capital of the Company immediately after the Offer has closed(assumingtheOffer is fullysubscribed, includingtheoverallotmentfacility,with150,000,000NewSharesbeingissuedatanOfferPriceof80.0p)willbeasfollows:

Classofshares

Nominalvalue

Issued(fullypaid)

£ Number

OrdinaryShares

£0.10 47,238,883.9 472,388,839

3.7ThefollowingallotmentsandrepurchasesofShareshavetakenplacesince1November2012:

Allotmentdate Sharesissued Issueprice(p)

28March2013 2,788,640 88.44April2013 1,019,437 88.45April2013 910,778 88.4

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8April2013 363,863 88.415April2013 104,316 88.412December2013 3,193,090 100.828March2014 3,120,572 97.04April2014 2,686,161 97.04April2014 64,801 93.65April2014 151,706 97.017June2014 775,365 97.617June2014 6,504 93.624July2014 181,324 92.227August2014 2,946 92.221November2014* 173,484 98.927November2014** 140,597,475 97.71December2014 14,741,050 103.422December2014 3,214,629 103.416February2015 4,232,089 103.430March2015 15,633,985 103.44April2015 9,340,146 103.430April2015 1,961,807 103.430June2015 5,081,752 103.424July2015* 1,219,880 95.717December2015 29,223,993 108.729January2016 4,189,536 108.726February2016 4,957,159 108.722March2016 18,663,974 108.722March2016* 2,809 95.701April2016 19,806,320 108.706April2016 14,517,060 108.713April2016 5,444,706 108.729April2016* 5,674,930 95.710June2016* 57,679 95.705July2016 103,157 95.7 *RepresentstheissueofsharesatNAVundertheDRIS**RepresentstheissueofsharesatNAVonthemergerofTitan1,Titan3,Titan4andTitan5withtheCompany

Buybackdate Sharesbought Price(p)

17April2013 353,679 84.2530April2013 57,053 84.2521June2013 57,000 84.2527June2013 56,663 81.754September2013 155,521 82.025October2013 38,185 82.010February2014 157,801 90.258April2014 298,558 87.030April2014 69,160 87.019September2014 180,000 87.026September2014 126,945 87.013February2015 345,000 92.7518February2015 321,270 92.7513March2015 300,000 92.7524April2015 650,000 92.7530April2015 658,645 92.7529June2015 130,000 92.756July2015 338,231 92.75

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17July2015 246,051 90.7515September2015 325,158 91.025September2015 1,416,116 91.530October2015 1,495,263 91.511February2016 380,000 98.117February2016 485,224 98.129April2016 1,114,397 91.527June2016 380,000 91.501July2016 353,625 91.5

3.8 Other than the issue of New Shares under the Offer and Shares under its Dividend

ReinvestmentScheme,theCompanyhasnopresentintentiontoissueanyShares.3.9 TheCompanydoesnothaveinissueanysecuritiesnotrepresentingsharecapital.3.10 The provisions of Section 561(1) of the 2006 Act (to the extent not disapplied subject to

Sections570or 571of theCA2006) conferon shareholders certain rightsof pre-emption inrespectoftheallotmentofequitysecurities(asdefinedinSection560(1)oftheCA2006)whichare,oraretobe,paidupincashandwillapplytotheCompany,excepttotheextentdisappliedbytheCompanyingeneralmeeting.Subjecttocertainlimitedexceptions,unlesstheapprovalofShareholders inageneralmeetingisobtained,theCompanymustnormallyoffersharestobeissuedforcashtoexistingShareholdersonaproratabasis.

3.11 NoSharesarecurrentlyinissuewithafixeddateonwhichentitlementtoadividendarisesand

there are no arrangements in force whereby future dividends are waived or agreed to bewaived.

3.12 Noshareor loancapitaloftheCompanyisunderoptionorhasbeenagreed,conditionallyor

unconditionally,tobeputunderoption.3.13 Except for commissions paid to authorised introducers in respect of previous offers for

subscription of Shares, no commissions, discounts, brokerages or other special terms havebeengrantedbytheCompanyinconnectionwiththeissueorsaleofanyshareorloancapitaloftheCompanysince1November2012.

3.14 OtherthanpursuanttotheOffer,noneof theNewShareshavebeensoldorareavailable in

whole or in part to the public in conjunctionwith the application for theNew Shares to beadmittedtotheOfficialList.

3.15 TheNewShareswillbeinregisteredform.Notemporarydocumentsoftitlewillbeissuedand

prior to the issueofdefinitive certificates, transferswillbecertifiedagainst the register. It isexpectedthatdefinitivesharecertificatesfortheNewSharesnottobeheldthroughCRESTwillbepostedtoallotteesassoonaspracticablefollowingallotmentoftherelevantshares. NewSharestobeheldthroughCRESTwillbecreditedtoCRESTaccountsonAdmission.CRESTisapaperless settlement procedure enabling securities to be evidenced otherwise than by acertificateandotherwisethanbyawritteninstrument.TheArticlesoftheCompanypermittheholdingofsharesinCREST.

3.16 TheISINandSEDOLCodesoftheSharesareGB00B28V9347andB28V934respectively.4 DIRECTORS’INTERESTS4.1 AsatthedateofthisdocumenttheDirectorsandtheirimmediatefamilieshavethefollowing

interestsintheissuedsharecapitaloftheCompany:

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Director No.ofShares %ofIssuedShareCapital JohnHustler 71,803 Lessthan0.1MattCooper 750,812 0.2MarkHawkesworth 65,310 Lessthan0.1JaneO’Riordan 45,037 Lessthan0.1

4.2 Assuming that the Offer is fully subscribed, including the over allotment facility, with

120,967,741NewSharesbeingissuedatanOfferPriceof99.2p,theinterestsoftheDirectorsandtheirimmediatefamiliesintheissuedsharecapitaloftheCompanyimmediatelyfollowingtheOfferwillbe:

Director No.ofShares %ofIssuedShareCapital JohnHustler 81,883 Lessthan0.1MattCooper 750,812 0.2MarkHawkesworth 75,390 Lessthan0.1JaneO’Riordan 55,117 Lessthan0.1

4.3 TheCompany isnot awareof anypersonwhoholdsorwho, assuming that theOffer is fully

subscribed with 120,967,741 New Shares being issued at an Offer Price of 99.2p, will,immediately following Admission of theNew Shares, hold (for the purposes of rule 5 of theDisclosure Guidance and Transparency Rules (“DGTR 5”)), directly or indirectly, voting rightsrepresenting3%ormoreoftheissuedsharecapitaloftheCompanytowhichvotingrightsareattached or who could, directly or indirectly, jointly or severally, exercise control over theCompany.

4.4 Thepersons, includingtheDirectorsreferredtoinparagraphs4.1and4.2above,donothave

voting rights in respect of the Shares (issued or to be issued) which differ from any otherShareholder.

4.5 TheCompany and theDirectors are not aware of any arrangements, the operation ofwhich

mayatasubsequentdateresultinachangeofcontroloftheCompany.4.6 NoDirectorhasany interest inanytransactionswhichareorwereunusual in theirnatureor

conditions orwhich are orwere significant to the business of the Company andwhichwereeffectedbytheCompanyinthecurrentorimmediatelyprecedingfinancialyearorwhichwereeffected during an earlier financial year and which remain in any respect outstanding orunperformed, except forMatt Cooper who is a shareholder in Octopus Capital Limited, theholding company of Octopus, and Chairman ofOctopus,which is a party to the agreementsreferredtoinparagraphs7,8.1,8.2,8.3and8.5belowandconsequentlyisinterestedintheseagreements.

4.7 InadditiontotheirdirectorshipsoftheCompany,theDirectorscurrentlyhold,andhaveduring

the five years preceding the date of this document held, the following directorships,partnershipsorbeenamemberoftheseniormanagement:

Name Position Nameofcompany/partnership Positionstillheld(Y/N)

JohnHustler Director HustlerVenturePartnersLimited Y

Director Hygeavctplc Y

Director NorthernVentureTrustplc N

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52

Director RenaissanceReSyndicateManagementLimited

N

MatthewCooper

Director Imaginatikplc Y

Director Imaginatik(Goswell)Limited Y

Director Which?FinancialServicesLimited N

Director AccessoTechnologyGroupPlc(formerlyLO-Qplc)

N

Director ClearlySoLimited Y

Director VouchedforLtd Y

Director CircusSpaceEventsLimited Y

Director NationalCentreforCircusArts Y

Director CircusSpacePropertyCompanyLimited

Y

Director TandemBankLimited Y

Director UltimateFinanceGroupLimited N

Director UltimateFinanceHoldingsLimited N

Director MyDishLimited N

Director 10DukeSoftwareLtd N

Director TheMentalHealthFoundation N

Director Knowledge&MerchandisingInc.Limited

N

Member CarbonLeadershipLLP Y

Director OctopusInvestmentsLimited Y

Director OctopusCapitalLimited Y

Director OctopusEclipseVCTplc Y

Director OctopusApolloVCTplc N

Director OctopusEclipseVCT2plc(dissolved)

N

Director OctopusEclipseVCT3plc N

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(dissolved)

Director OctopusEclipseVCT4plc(dissolved)

N

Director OctopusApolloVCT1plc(dissolved)

N

Director OctopusApolloVCT2plc(dissolved)

N

LimitedPartner

OctopusZenithFounderPartnerLP

Y

Director OctopusTitanVCT1plc(dissolved)

N

Director

OctopusPhoenixVCTplc(dissolved)

N

Director

Director

Director

Director

IndependentGrowthFinanceLimited

TheConservatoireforDanceandDrama

RiseCapitalLimited

LincolnTopcoLimited

Y

Y

Y

Y

MarkHawkesworth

Director TheGordonFoundation Y

Director ProcuritasInvestmentManagerIILimited

N

Director ProcuritasInvestmentManagerLimited(dissolved)

N

Director BPEPHoldingsLimited N

Director ESDManagersLimited N

Director EuralcomGroupBV(inliquidation) N

Director OctopusTitanVCT3plc(dissolved) N

Member BaringPrivateEquityPartnersGroupLLP

Y

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JaneO’Riordan Director Nando’sLimited Y

Director PilotspiceLimited Y

Director TheHonorChapmanFoundation(formerlyTheDuckyFoundation)

N

Director TheLondonLarderCompanyLimited

Y

Director YellowwoodsAssociatesUKLtd Y

Director CapricornAdvisorsLimited Y

Director KleinMoerbeiEstate(Pty)Limited Y

Director DynamoRestaurantsLimited Y

Director CapricornAdvisorsLLP Y

LimitedPartner

WickstoweManagementLLP Y

LimitedPartner

CapricornMarketingLLP Y

Director OctopusTitanVCT5PLC(dissolved) N

ThebusinessaddressofalltheDirectorsis33Holborn,LondonEC1N2HT.

4.8 Saveassetoutbelow,noneoftheDirectorshasatanytimewithinthelastfiveyears:4.8.1 had any convictions (whether spent or unspent) in relation to offences involving fraud or

dishonesty;

4.8.2 beenthesubjectofanyofficialpublic incriminationand/orsanctionsbystatutoryorregulatoryauthorities(includingdesignatedrecognisedprofessionalbodies)orbeendisqualifiedbyacourtfrom acting as a director of a company or from acting in themanagement or conduct of theaffairsofanycompany;

4.8.3 been a director or senior manager of a company which has been put into receivership,

compulsory liquidation,administration, companyvoluntaryarrangementoranycompositionorarrangementwithitscreditorsgenerallyoranyclassofitscreditors,saveassetoutinparagraph4.7above;or

4.8.4 beenthesubjectofanybankruptcyorbeensubjecttoanindividualvoluntaryarrangementora

bankruptcyrestrictionsorder.

OctopusPhoenixVCTplc,OctopusEclipseVCT2plc,OctopusEclipseVCT3plc,OctopusEclipseVCT4plc,OctopusApolloVCT1plc,OctopusApolloVCT2plc,OctopusTitanVCT1plc,OctopusTitanVCT3plc,OctopusTitanVCT5plcandProcuritasInvestmentManagerLimitedwereallinvoluntaryliquidationpriortobeingdissolved.MarkHawkesworthwasonthesupervisoryboard

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of EuralcomGroup BVwhich filed for insolvency in December 2007,with unsecured creditorsamountingtoapproximately40millioneuros.

4.9 Therearenoarrangementsorunderstandingswithmajorshareholders,customers,suppliersor

others, subject to which any Director was selected as a member of the administrative,managementorsupervisorybodiesormemberofseniormanagement.

4.10 TherearenooutstandingloansorguaranteesprovidedbytheCompanyforthebenefitofanyof

theDirectorsnorarethereanyloansoranyguaranteesprovidedbyanyoftheDirectorsfortheCompany.

4.11 The Directors, Octopus and the directors of Octopus do not have any conflicts of interest

betweentheirdutiestotheCompanyandtheirprivateinterestsorotherdutiesexceptforMattCooperwho isa shareholder inOctopusCapital Limited, theholdingcompanyofOctopus,andChairmanofOctopus,whichisapartytotheagreementsreferredtoinparagraphs7,8.1,8.2,8.3and8.5belowandconsequentlyisinterestedintheseagreements.

5 DIRECTORS’LETTERSOFAPPOINTMENT

John Hustler and Matt Cooper were appointed as Directors on 2 November 2007 subject toappointmentlettersofthesamedate.MarkHawkesworthandJaneO’RiordanwereappointedasDirectors on 27November 2014 subject to appointment letters of those dates. TheDirectors’appointmentsareterminableonthreemonths’noticeandnoarrangementshavebeenenteredintobytheCompanyentitlingtheDirectorstocompensationforlossofofficenorhaveamountsbeensetaside toprovidepension, retirementor similarbenefits. JohnHustler, aschairmanofthe Company, is entitled to annual remuneration of £35,000. Mark Hawkesworth, as auditChairmanisentitledto£30,000,whiletheannualremunerationreceivablebyMattCooperandJaneO’Riordanis£27,500each.Witheffectfrom1May2016,the annualremunerationofMattCooperwillbepaidbyOctopus. NoneoftheDirectorshasaservicecontractwiththeCompanyandnosuchcontract isproposed. Inrespectoftheyearended31October2015,JohnHustlerreceived £25,000, Matt Cooper received £19,000, Mark Hawkesworth received £19,000, JaneO’Riordan received £19,000 andMark Faulkner, who resigned as a Director on 27 November2014,received£1,000.

6 THECOMPANYANDITSSUBSIDIARY The Company has one wholly owned subsidiary, Zenith Holding Company Limited, a limited

companyincorporatedintheCaymanIslandswhoseregisteredofficeisatc/oMourantOzannesCorporate Services (Cayman) Limited, 94 Solaris Avenue, Cayman Bay, PO Box 1348, GrandCaymanKY1-1108,CaymanIslands.

7 OFFERAGREEMENT Anagreementdated23August2016,betweentheCompany (1), theDirectors (2),Octopus (3)

andHoward Kennedy (4) pursuant towhichHoward Kennedy agreed to act as sponsor to theCompany inrespectof theOfferandOctopusagreedtousereasonableendeavourstoprocuresubscribersforNewShares.UndertheagreementOctopusispaidaninitialfeeofupto5.5%ofthefundsreceivedundertheOfferandanongoingfeeof0.5%perannumofthe latestNAVoftheinvestmentamountsreceivedfrominvestorsundertheOfferwhohaveinvesteddirectlyintotheCompanyandnotthroughafinancialintermediaryforuptonineyears,subjecttothesefeesnot exceeding, in aggregate, an amount that is equal to 2.35% of the Company's marketcapitalisationasatthedateoftheagreement,andhasagreedtodischargeallexternalcostsof

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adviceandtheirowncostsinrespectoftheOffer.UnderthisagreementcertainwarrantieshavebeengivenbytheCompany, theDirectorsandOctopustoHowardKennedy.TheCompanyhasalsoagreedto indemnifyHowardKennedyinrespectof itsroleassponsor.Thewarrantiesandindemnityareinusualformforacontractofthistype.Theagreementcanbeterminatedifanystatement intheProspectus isuntrue,anymaterialomissionfromtheProspectusarisesoranybreachofwarrantyoccurs.Octopushasagreed to indemnify theCompanyagainst thecostsoftheOfferexceeding7.5%ofthegrossproceedsoftheOffer.

8 MATERIALCONTRACTS Thefollowingaretheonlycontracts(notbeingcontractsenteredintointheordinarycourseof

business)whichhavebeenenteredintobytheGroupinthetwoyearsimmediatelyprecedingthedateof thisdocumentorwhichareexpected tobeentered intoprior toAdmissionandwhichare,ormaybe,materialorwhichhavebeenentered intoatanytimebytheGroupandwhichcontainanyprovisionunderwhichtheGrouphasanyobligationorentitlementwhichis,ormaybe,materialtotheGroupasatthedateofthisdocument:

8.1 TheOfferAgreement,detailsofwhicharesetoutinparagraph7above.8.2 Anagreementdated8September2015,betweentheCompany(1),theDirectors(2),Octopus(3)

andHoward Kennedy (4) pursuant towhichHoward Kennedy agreed to act as sponsor to theCompany in respect of the 2015 Offer and Octopus agreed to use reasonable endeavours toprocuresubscribersforSharesunderthe2015Offer.UndertheagreementOctopuswaspaidaninitialfeeofupto5.5%ofthefundsreceivedunderthe2015Offerandanongoingfeeof0.5%perannumoftheNAVoftheinvestmentamountsreceivedfrominvestorsunderthe2015OfferwhohaveinvesteddirectlyintotheCompanyandnotthroughafinancialintermediaryforuptonineyearsandagreedtodischargeallexternalcostsofadviceandtheirowncostsinrespectofthe 2015 Offer. Under this agreement certain warranties were given by the Company, theDirectors and Octopus to Howard Kennedy. The Company also agreed to indemnify HowardKennedy inrespectof itsroleassponsor.Thewarrantiesandindemnityare inusualformforacontract of this type. The agreement could be terminated if any statement in the prospectusrelatingtothe2015Offerwasuntrue,anymaterialomissionfromthatprospectusaroseoranybreachofwarrantyoccurred.OctopusagreedtoindemnifytheCompanyagainstthecostsofthe2015Offerexceeding7.5%ofthegrossproceedsofthe2015Offer.

8.3 An offer agreement dated 16 September 2014 between the Company (1), the Directors (2),

Octopus(3)andHowardKennedy(4)subjecttowhichHowardKennedyagreedtoactassponsortotheCompanyinrespectofthe2014OfferandOctopusagreedtousereasonableendeavourstoprocuresubscribersforSharesunderthe2014Offer.UndertheagreementOctopuswaspaidaninitialfeeofupto5.5%ofthefundsreceivedunderthe2014Offerandanongoingfeeof0.5%perannumofthenetassetvalueoftheinvestmentamountsreceivedfrominvestorsunderthe2014 Offer who have invested directly into the Company and not through a financialintermediaryforuptonineyearsandagreedtodischargeallexternalcostsofadviceandtheirowncosts inrespectofthe2014Offer.Underthisagreementcertainwarrantiesweregivenbythe Company, the Directors and Octopus to Howard Kennedy. The Company also agreed toindemnifyHowardKennedyinrespectofitsroleassponsor.Thewarrantiesandindemnityareinusualformforacontractofthistype.Theagreementcouldbeterminatedifanystatementintheprospectus relating to the2014Offerwasuntrue, anymaterial omission from that prospectusaroseoranybreachofwarrantyoccurred.OctopusagreedtoindemnifytheCompanyagainstthecostsofthe2014Offerexceeding7.5%ofthegrossproceedsofthe2014Offer.

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8.4 ThelettersofappointmentoftheDirectors,detailsofwhicharesetoutinparagraph5above.8.5 Amanagement agreement (the “Management Agreement”) dated 2November 2007 between

Titan 1, the Company and Octopus Ventures Limited (as novated to Octopus by a deed ofnovation dated 19 October 2009) and an administration agreement (the “AdministrationAgreement”) dated 2 November 2007 between Titan 1, the Company and Octopus, (theManagement Agreement and Administration Agreement both as varied by deeds of variationdated 7 February 2013 and 16 September 2014). The Management Agreement provides thatOctopuswillprovideinvestmentmanagementservicestotheCompanyinrespectofitsportfolioofqualifyinginvestmentsforafeeof2%oftheCompany'sNAVonanannualbasis.TheManageris also entitled to a performance incentive fee under the Management Agreement and theAdministrationAgreementassetoutbelow.

InNovember2014, theTitanVCTsweremerged.At the timeof theMerger all theTitanVCTsexceptforTitan5hadmettheirperformancefeehurdles(Titan5beingtheyoungestoftheTitanVCTs,havingbeenincorporatedin2010).Thiscurrentlycontinuestohaveanimpactonthewaytheperformancefeeiscalculatedandpaid.

1.InrespectoftheproportionoftheCompany'sfundequivalenttothepreviousTitan5sharesatthetimeoftheMerger,aperformancefeeof20%ofallgainsaboveNAVpluscumulativedividendspaidof147.2p in theCompany (equivalent to100pperTitan5shareprior to theMerger) is to be paid to theManager. This becomes payable when both of the followingconditionsaremet:

• TheNAVpluscumulativedividendspaidoftheCompanyis169.3p.Thisconditionhasnotyetbeenmet-NAVpluscumulativedividendswas154.7pperShareasat30April2016;and

• Further dividends are paid of 3.3p per Share after theMerger. This condition has beenmet - 9.0pper Share of dividends havebeenpaid in theperiod from theMerger to 30April2016

As thedividendpaid conditionhasnowbeenmet, the lower thresholdof147.2phasbeenexceededandit isconsideredlikelythattheupperthresholdwillbemet induecourse,thisperformance fee is currentlybeingaccrued (i.e.hasnot yetbeenpaid) for gainsabove the147.2pthreshold:asat30April2016,theCompanyhadaccrued£528,000inrespectofthisperformancefeewhichistakenintoaccountinthepublishedNAVoftheCompany.

2.InrespectoftheremainingproportionoftheCompany'sfund,aperformancefeeof20%ofallfuturegainsaboveNAVpluscumulativedividendspaidof154.7p,subjecttoahighwatermark (being the highest total return from a previous year end), will be payable to theManager.

3. Once the performance fee hurdles in relation to the previous Titan 5 hurdles aremet, the

Company'swhole fundwillbesubject toa20%performance feeonany futuregainsaboveNAVpluscumulativedividendspaidof169.3p,subjecttoahighwatermark(beingthehighesttotalreturnfromapreviousyearend),willbepayabletotheManager.

Pursuant to the Administration Agreement, Octopus provides administration services to theCompany for a fee of 0.3% of the NAV of the Company on an annual basis and companysecretarialservicesforafeeof£20,000perannum.

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The deed of variation dated 16 September 2014 extended the term of the ManagementAgreement and the Administration Agreement for a further 5 years from completion of theMerger,subjecttoearlierterminationintheeventoftheunderperformanceoftheManager,thedeparture of certain members of the Manager or as agreed by the Shareholders and theManager, and thereafter the Management Agreement and Administration Agreement will beterminablebythepartiestheretoon12months’writtennotice.Octopus also retains the right pursuant to theManagementAgreement to charge transaction,directors’, monitoring, consultancy, corporate finance, introductory and syndication fees,commissions and refunds of commissions in respect of the management of the Company’sinvestmentportfolio.Suchfeesdonottypicallyexceed1.5%ofthetotalamountinvestedbyallOctopus managed funds (including the Company) per annum, assuming an investment of £5millionandaholdingperiodoffiveyears.ThecostsofalldealsthatdonotproceedtocompletionaretypicallybornebyeitherthecompanyseekingfundingorbyOctopus.

8.6 Transferagreementsdated27November2014betweentheCompanyandeachofTitan1,Titan3, Titan4 andTitan5 (acting through the Liquidators)pursuant towhichall of theassets andliabilitiesofTitan1,Titan3,Titan4andTitan5weretransferredtotheCompanypursuanttotheMergerinconsiderationforSchemeShares.TheLiquidatorsagreedundertheseagreementsthatallsaleproceedsand/ordividendsreceivedinrespectoftheunderlyingassetsofTitan1,Titan3,Titan4andTitan5willbetransferredonreceipttotheCompanyaspartoftheMerger.

8.7 Anindemnitydated27November2014fromtheCompanytotheLiquidatorspursuanttowhich

the Company will indemnify the Liquidators for expenses and costs incurred by them inconnectionwiththeMerger.

MaterialcontractsforZenithHoldingCompanyLimited8.8 On 3 May 2013 Zenith Holding Company Limited entered into a partnership agreement

(“Partnership Agreement”) with Octopus GP Limited (“General Partner”), Octopus ZenithFounder Partner LP, the Manager and the limited partners referred to in the PartnershipAgreement, relating to Octopus Zenith LP (“Zenith”), which had been formed to carry on thebusinessofaninvestorandtowhichcertaininvestmentshadbeentransferredbytheCompany,Titan1andTitan3.Pursuant to thePartnershipAgreementZenith ismanagedby theGeneralPartner,whichwilldelegate its responsibilities to theManager.The termofZenithwillbe fiveyears from the final closing date and the investment periodwill be two years (or such earlierdate when all investments have been made), both of which may be extended by up to twoadditionaloneyearperiods.Zenithisalsoreliantoncertainkeyindividualsandthedepartureofsuchindividualsmayleadtoasuspensionoftheoperationoftheinvestmentperiod.TheGeneralPartner shall also appoint three representatives to act asmembers of an investor committee(whichshall includearepresentativeof theCompany) thatare tobeconsultedbytheGeneralPartner on general policies and guidelines, prospective investment sectors and conflicts ofinterest,butshallnotmakeanydecisions relating to themakingor realisationof investments.The Company may also be presented with the option to co-invest in certain opportunitiesalongsideZenith.

9 RELATEDPARTYTRANSACTIONS SaveforthefeespaidtotheDirectorsasdetailedinparagraph5above,thefeespaidunderthe

managementandadministrationagreementsdetailedinparagraph8.5aboveandthefeespaidtoOctopusof£4.52millioninrespectofpromotionfeespursuanttotheagreementsdetailedatparagraphs 8.1 to 8.3 above and pursuant to offer agreements dated 7 February 2013 and 3September2013,therewerenootherrelatedpartytransactionsorfeespaidbytheGroupduringtheyearsended31October2013,31October2014and31October2015orfortheperiodfrom31October2015tothedateofthisdocument.

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10 WORKINGCAPITALThe Company is of the opinion that the working capital of the Company and the Group issufficientfortheCompany’sandtheGroup'spresentrequirements,thatis,foratleasttheperiodoftwelvemonthsfromthedateofthisdocument.

11 CAPITALISATIONANDINDEBTEDNESS11.1 ThecapitalisationoftheCompanyasat30April2016wasasfollows:

Capitalandreserves CalledupEquityShareCapital 32,296SharePremium 93,886SpecialDistributableReserve 158,703CapitalRedemptionReserve 523CapitalReserveRealised 7,908CapitalReserveUnrealised 21,034RevenueReserve (5,290)

TotalEquityShareholders’Funds 309,060

Therehasbeennomaterialchangetothecapitalisationsince30April2016.

11.2 Since incorporation, the Company has incurred no indebtedness. The Company has power to

borrow under the Articles, details of which are set out in the paragraph entitled “Borrowingpowers”inparagraph14.1.13below.

12. AUDIT,REMUNERATIONANDNOMINATIONCOMMITTEES

AuditCommittee

12.1 TheauditcommitteeoftheCompanycomprisestheBoard(withtheexceptionofMattCooper),is chairedbyMarkHawkesworth andmeets twice a year. The committeehasdirect access toJamesCowperLLP,3WesleyGate,Queen’sRoad,Reading,BerkshireRG14AP, theCompany’sexternalauditor.Thedutiesoftheauditcommitteeare,interalia:

12.1.1 to review and approve the half yearly and annual results of the Company and thestatutoryaccountsbeforesubmissiontotheBoard;

12.1.2 toreviewandapprovetheexternalauditor’stermsofengagementandremuneration;and

12.1.3 to review the appropriateness of the Company’s accounting policies, to considermattersofcorporategovernanceasmaygenerallybeapplicabletotheCompanyandtomakerecommendationstotheBoardinconnectiontherewithasappropriate.

NominationandRemunerationCommittees12.1.4 AnominationcommitteeconsistingoftheBoardandchairedbyJohnHustlerhasbeen

establishedtoconsiderrecommendationsforthere-electionofDirectors.Todatenoremunerationcommitteehasbeenestablishedandmattersrelatingtoremuneration

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of the Directors are considered by the Board and any Director is excluded frommeetingsthepurposeofwhichisthesettingofhisownremuneration.

13. LITIGATION

There have been no governmental, legal or arbitration proceedings (including any suchproceedings which are pending or threatened of which the Company is aware) since theCompany’sincorporationwhichmayhave,orhavehadintherecentpast,asignificanteffectontheGroup'sfinancialpositionorprofitability.

14. ARTICLESOFASSOCIATION

14.1 ThearticlesofassociationoftheCompanycontain,interalia,thefollowingprovisions.

14.1.1 VotingRights

Subject to any disenfranchisement as provided in paragraph 14.1.5 below the Shares shallcarrytherighttoreceivenoticeofortoattendorvoteatanygeneralmeetingoftheCompanyand on a show of hands every holder of Shares present in person or by proxy (or being acorporation, present by an authorised representative) shall have one vote and, on a poll,every holder of Shareswho is present in person or by proxy shall have one vote for everyShareofwhichhe is theholder. TheShares shall rankparipassuas to rights toattendandvoteatanygeneralmeetingoftheCompany.

14.1.2 TransferofSharesTheSharesareinregisteredformandwillbefreelytransferablefreeofallliens.Alltransfersof Shares must be effected by a transfer in writing in any usual form or any other formapprovedbytheDirectors.The instrumentoftransferofaShareshallbeexecutedbyoronbehalf of the transferor and, in the case of a partly paid Share, by or on behalf of thetransferee.TheDirectorsmayrefusetoregisteranytransferofapartlypaidShare,providedthatsuchrefusaldoesnotpreventdealingstakingplaceonanopenandproperbasisandmayalsorefusetoregisteranyinstrumentoftransferunless:

14.1.314.1.4

(i)itisdulystamped(ifsorequired),islodgedwiththeCompany’sregistraroratsuchotherplaceastheDirectorsmayappointandisaccompaniedbythecertificateforthesharestowhichitrelatesandsuchotherevidenceastheDirectorsmayreasonablyrequiretoshowtherightofthetransferortomakethetransfer;

(ii) itisinrespectofonlyoneclassofshare;and(iii)thetransfereesdonotexceedfourinnumber.DividendsTheCompanymayingeneralmeetingbyordinaryresolutiondeclaredividendstobepaidtomembersinaccordancewiththeArticles,providedthatnodividendshallbepayableinexcessoftheamountrecommendedbytheDirectors.TheDirectorsmaypaysuchinterimdividendsasappeartothemtobejustified.NodividendorothermoniespayableinrespectofashareshallbearinterestasagainsttheCompany.Therearenofixeddatesonwhichentitlementtoadividendarises.Alldividendsunclaimedforaperiodof twelveyearsafterbeingdeclaredorbecomingdueforpaymentshallbeforfeitedandshallreverttotheCompany.TheSharesshallentitletheirholderstoreceivesuchdividendsastheDirectorsmayresolvetopayoutof thenetassetsattributable to theSharesand from income receivedandaccruedwhichisattributabletotheShares.

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TheDirectorsmay,with the prior sanction of an ordinary resolution of the Company, offerShareholders theright toelect toreceive inrespectofallorpartof theirholdingofShares,additionalSharescreditedasfullypaidinsteadofcashinrespectofallorpartofsuchdividendordividendsand(subjectashereinafterprovided)uponsuchtermsandconditionsandinsuchmannerasmaybespecifiedinsuchordinaryresolution.TheordinaryresolutionshallconferthesaidpowerontheDirectorsinrespectofallorpartofaparticulardividendorinrespectofalloranydividends(oranypartofsuchdividends)declaredorpaidwithinaspecifiedperiodbutsuchperiodmaynotendlaterthanthedateoftheannualgeneralmeetingnextfollowingthedateofthegeneralmeetingatwhichsuchordinaryresolutionispassed.

14.1.5 DisclosureofInterestinSharesIf any Shareholder or other person appearing to be interested in Shares is in default insupplyingwithin14daysafterthedateofserviceofanoticerequiringsuchmemberorotherperson to supply to theCompany inwriting all or any such information as is referred to inSection793oftheCA2006,theDirectorsmay,forsuchperiodasthedefaultshallcontinue,imposerestrictionsupontherelevantShares.The restrictions available are the suspension of voting or other rights conferred bymembership in relation tomeetings of the Company in respect of the relevant Shares andadditionallyinthecaseofaShareholderrepresentingatleast0.25%bynominalvalueofanyclassofSharesoftheCompanytheninissue,thewithholdingofpaymentofanydividendson,andtherestrictionoftransferof,therelevantShares.

14.1.6 DistributionofAssetsonLiquidationOnawinding-upanysurplusassetswillbedividedamongsttheholdersofeachclassofsharesin the Company according to the respective numbers of shares held by them and inaccordancewiththeprovisionsoftheCA2006,subjecttotherightsofanyshareswhichmaybeissuedwithspecialrightsorprivileges.TheArticlesprovidethattheliquidatormay,withthesanctionofaspecialresolutionandanyothersanctionrequiredbytheCA2006,divideamongstthemembersinspeciethewholeoranypartoftheassetsoftheCompanyinsuchmannerashemaydetermine.

14.1.7 ChangesinShareCapital

(i) Withoutprejudice toany rightsattaching toanyexistingshares,anysharemaybe issued with such rights or restrictions as the Company may by ordinaryresolutiondetermineor in the absenceof suchdetermination, as theDirectorsmay determine. Subject to the CA 2006, the Companymay issue shareswhichare,orattheoptionoftheCompanyortheholderare,liabletoberedeemed.

(ii) TheCompanymaybyordinary resolution increase its share capital, consolidateanddividealloranyofitssharecapital intosharesoflargeramount,sub-divideitssharesoranyofthemintosharesofsmalleramounts,orcancelorreducethenominalvalueofanyshareswhichhavenotbeentakenoragreedtobetakenbyany person and diminish the amount of its share capital by the amount socancelledortheamountofthereduction.

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(iii)(iv)

SubjecttotheCA2006,theCompanymaybyspecialresolutionreduceitssharecapital,anycapitalredemptionreserveandanysharepremiumaccountandmayalso,subjecttotheAct,purchaseitsownshares.The Companymay by ordinary resolution convert any fully paid up shares intostockofthesameclassastheshareswhichshallbesoconverted,andreconvertsuchstockintofullypaidupsharesofthesameclassandofanydenomination.

14.1.8

VariationofRights

Whenever the capital of the Company is divided into different classes of shares, the rightsattachedtoanyclassmay(unlessotherwiseprovidedbythetermsof issueofthatclass)bevariedorabrogatedeitherwiththeconsent inwritingoftheholdersofnot lessthanthree-fourths of the nominal amount of the issued shares of that class orwith the sanction of aresolutionpassedataseparatemeetingofsuchholders.

14.1.9 DirectorsUnlessanduntilotherwisedeterminedbyanordinaryresolutionoftheCompany,thenumberofDirectorsshallnotbefewerthantwonormorethanten.ThecontinuingDirectorsmayactnotwithstandinganyvacancy in theirbody,provided that if thenumberof theDirectorsbefewer than the prescribed minimum, the remaining Director or Directors shall forthwithappoint an additional Director or additional Directors to make up such minimum or shallconveneageneralmeetingoftheCompanyforthepurposeofmakingsuchappointment.AnyDirectormay inwritingunderhishandappoint (a) anyotherDirector,or (b)anyotherpersonwhoisapprovedbytheBoardashereinafterprovided,tobehisalternate.ADirectormay at any time revoke the appointment of an alternate appointed by him. Every personactingasanalternateDirectoroftheCompanyshallbeanofficeroftheCompany,andshallalone be responsible to the Company for his own acts and defaults, and he shall not bedeemedtobetheagentoforfortheDirectorappointinghim.SubjecttotheprovisionsoftheStatutes(asdefinedintheCompany’sarticlesofassociation),the Directors may from time to time appoint one or more of their body to be managingdirectororjointmanagingdirectorsoftheCompanyortoholdsuchotherexecutiveofficeinrelationtothemanagementofthebusinessoftheCompanyastheymaydecide.

A Directormay continue or become a Director or other officer, servant ormember of anycompany promoted by the Company or in which they may be interested as a vendor,shareholder,orotherwise,andnosuchDirectorshallbeaccountableforanyremunerationorotherbenefitsderivedasDirectororotherofficer,servantormemberofsuchcompany.TheDirectorsmayfromtimetotimeappointachairmanoftheCompany(whoneednotbeaDirectoroftheCompany)andmaydeterminehisdutiesandremunerationandtheperiodforwhichheistoholdoffice.The Directors may from time to time provide for the management and transaction of theaffairsoftheCompanyinanyspecifiedlocality,whetherathomeorabroad,insuchmannerastheythinkfit.

14.1.10 Directors’Interests

14.1.10.1 ADirectorwhoisinanyway,directlyorindirectly,interestedinatransactionorarrangementwith theCompany shall, at ameetingof theDirectors,declare, inaccordancewiththeCA2006,thenatureofhisinterest.

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14.1.10.2. Provided that he has declared his interest in accordance with paragraph14.1.10.1,aDirectormaybeapartytoorotherwiseinterestedinanytransactionor arrangement with the Company or in which the Company is otherwiseinterestedandmaybeadirectororotherofficerorotherwise interestedinanybodycorporatepromotedbytheCompanyorinwhichtheCompanyisotherwiseinterested. No Director so interested shall be accountable to the Company, byreasonofhisbeingaDirector,foranybenefitthathederivesfromsuchofficeorinterestoranysuchtransactionorarrangement.

14.1.10.3 A Director shall not vote nor be counted in the quorum at a meeting of theDirectors inrespectofamatter inwhichhehasanymaterial interestotherwisethan by virtue of his interest in shares, debentures or other securities of, orotherwiseinorthroughtheCompany,unlesshisinterestarisesonlybecausethecasefallswithinoneormoreofthefollowingparagraphs:

(a) thegiving tohimofanyguarantee, securityor indemnity in respectofmoneylentoranobligationincurredbyhimattherequestoforforthebenefitoftheCompanyoranyofitssubsidiaryundertakings;

(b) the giving to a third party of any guarantee, security or indemnity inrespectofadebtoranobligationoftheCompanyoranyofitssubsidiaryundertakingsforwhichhehasassumedresponsibilityinwholeorinpartunderaguaranteeorindemnityorbythegivingofsecurity;

(c) anyproposalconcerningthesubscriptionbyhimofshares,debenturesorothersecuritiesoftheCompanyoranyofitssubsidiaryundertakingsorbyvirtueofhisparticipatingintheunderwritingorsub-underwritingofanofferofsuchshares,debenturesorothersecurities;

(d) anyproposal concerning anyother company inwhichhe is interested,directlyorindirectly,whetherasanofficerorshareholderorotherwise,provided that he and any persons connected with him do not to hisknowledge hold an interest in shares representing 1% ormore of anyclassoftheequitysharecapitalofsuchcompanyorofthevotingrightsavailabletomembersoftherelevantcompany;

(e)(f)

any proposal relating to an arrangement for the benefit of theemployees of the Company or any subsidiary undertaking which doesnot award to any Director as such any privilege or advantage notgenerallyawardedtotheemployeestowhomsucharrangementrelates;andanyarrangementforpurchasingormaintainingforanyofficerorauditorof theCompanyoranyof itssubsidiaries insuranceagainstany liabilitywhich by virtue of any rule of law would otherwise attach to him inrespectofanynegligence,breachofdutyorbreachoftrustforwhichhemay be guilty in relation to the Company or any of its subsidiaries ofwhichheisaDirector,officerorauditor.

14.1.10.4 WhenproposalsareunderconsiderationconcerningtheappointmentoftwoormoreDirectors toofficesoremploymentwith theCompanyoranycompany inwhichtheCompanyisinterested,theproposalsmaybedividedandconsideredinrelationtoeachDirectorseparatelyand(ifnototherwiseprecludedfromvoting)eachoftheDirectorsconcernedshallbeentitledtovoteandbecounted inthequorum in respect of each resolution except that concerning his ownappointment.

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14.1.11 RemunerationofDirectors

14.1.11.1 TheordinaryremunerationoftheDirectorsshallbesuchamountastheDirectorsshall fromtimetotimedetermine(providedthatunlessotherwiseapprovedbythe Company in generalmeeting the aggregate ordinary remuneration of suchDirectors, including fees, shall not exceed £100,000 per year) to be dividedamongtheminsuchproportionandmannerastheDirectorsmaydetermine.TheDirectors shall alsobepaidby theCompanyall reasonable travelling,hotelandotherexpensestheymayincurinattendingmeetingsoftheDirectorsorgeneralmeetingsorotherwiseinconnectionwiththedischargeoftheirduties.

14.1.11.2 AnyDirectorwho,byrequestoftheDirectors,performsspecialservicesforanypurposes of the Companymay be paid such reasonable extra remuneration astheDirectorsmaydetermine.

14.1.11.3

TheemolumentsandbenefitsofanyexecutiveDirector forhis servicesas suchshall be determined by the Directors andmay be of any description, includingmembership of any pension or life assurance scheme for employees or theirdependants or, apart frommembership of any such scheme, the payment of apension or other benefits to him or his dependants on or after retirement ordeath.

14.1.12

SubjecttothepassingofResolution4attheGeneralMeeting,theArticlesshallbeamendedtoprovidethatunlessotherwiseapprovedbytheCompanyingeneralmeetingtheaggregateordinaryremunerationofsuchDirectors,includingfees,shallnotexceed£150,000peryear.RetirementofDirectors

AttheannualgeneralmeetingoftheCompanynextfollowingtheappointmentofaDirectorheshallretirefromoffice.ADirectorshallalsoretirefromofficeatorbeforethethirdannualgeneralmeeting following the annual generalmeeting atwhich he last retired andwas re-elected.AretiringDirectorshallbeeligibleforre-election.ADirectorshallbecapableofbeingappointed or re-appointed despite having attained any particular age and shall not berequiredtoretirebyreasonofhishavingattainedanyparticularage,subjecttotheprovisionsoftheAct.

14.1.13 BorrowingPowers

Subject as provided below, the Directors may exercise all the powers of the Company toborrowmoneyandtomortgageorchargeitsundertaking,propertyanduncalledcapital.

TheCompany’sarticlespermitborrowingsofamountsupto50%of theaggregateof (i) theamountpaidup(orcreditedaspaidup)ontheallottedorissuedsharecapitaloftheCompanyand(ii)theamountstandingtothecreditofthereserves,whetherornotdistributable,afteraddingordeductinganybalancestandingtothecreditordebitoftheprofitandlossaccount,asadjustedinaccordancewiththeCompany’sarticlesofassociation.

14.1.14 DistributionofRealisedCapitalProfits

AtanytimewhentheCompanyhasgivennoticeintheprescribedform(whichhasnotbeenrevoked)totheRegistrarofCompaniesofitsintentiontocarryonbusinessasaninvestmentcompany (“a Relevant Period”) the distribution of the Company’s capital profits shall beprohibited. The Board shall establish a reserve to be called the capital reserve. During aRelevantPeriod,allsurplusesarisingfromtherealisationorrevaluationofinvestmentsandallothermoniesrealisedonorderivedfromtherealisation,paymentorotherdealingwithanycapitalassetinexcessofthebookvaluethereofandallothermonieswhichareconsideredbytheBoardtobe inthenatureofaccretiontocapitalshallbecreditedtothecapitalreserve.

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Subject to the CA 2006, the Board may determine whether any amount received by theCompany is to be dealt with as income or capital or partly one way and partly the other.DuringaRelevantPeriod,anylossrealisedontherealisationorpaymentorotherdealingwithinvestments,orothercapitallosses,and,subjecttotheCA2006,anyexpenses,lossorliability(or provision therefore)which the Board considers to relate to a capital item orwhich theBoardotherwiseconsidersappropriatetobedebitedtothecapitalreserveshallbecarriedtothedebitofthecapitalreserve.DuringaRelevantPeriod,allsumscarriedandstandingtothecreditofthecapitalreservemaybeappliedforanyofthepurposesforwhichsumsstandingtoanyrevenuereserveareapplicableexceptandprovidedthatduringaRelevantPeriodnopartof thecapital reserveoranyothermoney in thenatureofaccretion tocapital shallbetransferred to the revenue reservesof theCompanyorbe regardedor treatedasprofitsofthe Company available for distribution or applied in paying dividends on any shares in theCompany. InperiodsotherthanaRelevantPeriod,anyamountstandingtothecreditofthecapitalreservemaybetransferredtotherevenuereservesoftheCompanyorberegardedortreatedasprofitsoftheCompanyavailablefordistributionorappliedinpayingdividendsonanysharesintheCompany.

14.1.15 DurationofCompanyAt the laterof (i) theannualgeneralmeetingheld in2020and (ii) the tenthannualgeneralmeeting held after the fifth anniversary of the last allotment of shares (from time to time)and, if the Company has not then been wound up, at each fifth annual general meetingthereafter, the Directors shall procure that an ordinary resolution will be proposed to theeffect that the Company shall continue as a venture capital trust. If the resolution is notpassed, theBoard shallwithin4monthsof suchmeetingconveneageneralmeetingof theCompany at which a special resolution for the re-organisation or reconstruction of theCompanyand/oraspecialresolutionrequiringtheCompanytobewoundupvoluntarilyshallbeproposed.Ifneitheroftheresolutionsispassed,theCompanyshallcontinueasaventurecapitaltrust.

14.1.16 GeneralMeetings

TheDirectorsmay,whenever they think fit, convene a generalmeeting of the Company. Ifwithin fifteenminutes (or such longer timenotexceedingonehouras thechairmanof themeeting may decide to wait) from the time appointed for the meeting a quorum is notpresent, themeeting, ifconvenedontherequisitionofmembers,shallbedissolvedand, inanyothercase,shallstandadjournedtosuchday(beingnotlessthantencleardays)andatsuchtimeandplaceastheBoardmaydetermine.Ifatanysuchadjournedmeetingaquorumis not presentwithin fifteenminutes from the time appointed for themeeting, amemberpresentinpersonorbyproxyandentitledtovoteshallbeaquorum.Thechairmanmay,withtheconsentofthemeeting(andshall,ifsodirectedbythemeeting)adjourn any meeting from time to time and from place to place. No business shall betransactedatanyadjournedmeetingotherthanthebusiness leftunfinishedatthemeetingfromwhichtheadjournmenttookplace.

14.2 CREST CRESTisapaperlesssettlementprocedureenablingsecuritiestobeevidencedotherwisethanby

acertificateandtransferredotherwisethanbyawritteninstrument.TheCompany’sarticlesofassociation are consistent with CREST membership and allow for the holding and transfer ofsharesinuncertificatedformsubjecttotheUncertificatedSecuritiesRegulations2001.TheNewShareshavebeenmadeeligibleforsettlementinCREST.

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15. SPECIFICDISCLOSURESINRESPECTOFCLOSEDENDEDFUNDS15.1 Octopus intends touse theproceedsof theOffer in accordancewith theCompany’sobjectof

spreading investment risk and in accordance with the Company’s investment policy. Thisinvestment policy is in linewith the VCT Rules and the Companywill not deviate from them.Further, inaccordancewiththeVCTRules, theCompanywill invest inordinaryshares, insomecases inasmallnumberofpreferenceshareswhereapplicable,andalways inaccordancewithsuchrules.

15.2 TheCompany isauthorisedandregulatedbytheFCAasaselfmanagedalternative investment

fund.VCTsneedtomeetanumberofconditionssetoutintaxlegislationinorderfortheVCTtaxreliefstoapply,andcomplywiththerulesandregulationsoftheUKListingAuthority.

15.3 TheCompanyisregulatedbytheVCTRulesinrespectoftheinvestmentsitmakes,asdescribed

in Part Twoof this document. The Company has appointed PricewaterhouseCoopers LLP of 1EmbankmentPlace,LondonWC2N6RH(“PwC”)asitsVCTstatusmonitor.PwCwillreporttotheCompanyaspartof itsannualreportingobligations. InrespectofanybreachoftheVCTRules,theCompany, togetherwith PwC,will reportdirectlyand immediately toHMRC to rectify thebreach and announce the same immediately to the Shareholders via a Regulatory InformationServiceprovider.

15.4 TheCompanywillnotinvestmorethan15%ofitsgrossassetsatthepointofinvestmentinany

single company, in accordance with the VCT legislation, nor will the Company control thecompaniesinwhichitinvestsinsuchawayastorenderthemsubsidiaryundertakingsuntiltheyhaveobtainedapprovalasaVCTfromHMRC.

15.5 TheCompanywillnotconductanytradingactivitywhichissignificantinthecontextofitsgroup

(if any) as a whole. Nomore than 10%, in aggregate, of the value of the total assets of theCompany at the time an investment is made may be invested in other listed closed-endedinvestment funds, except where those funds themselves have published investment policieswhichpermitthemtoinvestnomorethan15%oftheirtotalassetsinotherlistedclosed-endedinvestmentfunds.

15.6 TheBoardmustbeabletodemonstratethatitactsindependentlyoftheManager.Amajorityof

the Board (including the Chairman) must not be directors, employees, partners, officers, orprofessionaladvisersoforto,theManageroranycompanyintheManager’sgrouporanyotherinvestmententitywhichtheymanage.

15.7 TheCompanywillnotinvestdirectlyinphysicalcommodities.15.8 TheCompanywillnotinvestinanypropertycollectiveinvestmentundertaking.15.9 Other than as provided for under its investment policy, the Company will not invest in any

derivatives, financial instruments,moneymarket instruments or currencies other than for thepurposesofefficientportfoliomanagement(i.e.solelyforthepurposeofreducing,transferringor eliminating investment risk in the underlying investments of the collective investmentundertaking,includinganytechniqueorinstrumentusedtoprovideprotectionagainstexchangeandcreditrisks).

15.10 OctopusisresponsibleforthedeterminationandcalculationoftheNAVoftheCompanyonasix

monthlybasis.15.11 TheNAVoftheCompany’sinvestmentswillbedeterminedbyOctopusatleasteverysixmonths

andwillbecommunicatedtoShareholdersthroughaRegulatoryInformationService.Thevalueof investmentswill be determined on a fair value basis. In the case of quoted securities, fairvalueisestablishedbyreferencetotheclosingbidpriceontherelevantdateorthelasttradedprice,dependingonconventionoftheexchangeonwhichtheinvestmentisquoted.Inthecase

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ofunquotedinvestments,fairvalueisestablishedbyusingmeasuresofvaluesuchasthepriceofrecenttransactions,earningsmultipleandnetassets.ThisisconsistentwithInternationalPrivateEquityandVentureCapitalvaluationguidelines.

15.12 The calculation of the NAV per Share would only be suspended in circumstances where the

underlyingdatanecessary tovalue the investmentsof theCompanycouldnot readily,withoutundueexpenditure,beobtained. Detailsofanysuspension inmakingsuchcalculationswillbecommunicatedtoShareholdersthroughaRegulatoryInformationService.

16. CORPORATEGOVERNANCE TheUKCorporateGovernanceCodepublishedbytheFinancialReportingCouncil inSeptember

2014 (the “Code”) applies to the Company. The Directors acknowledge the section headed“ComplyorExplain”inthepreambletotheCodewhichacknowledgesthatsomeprovisionsmayhave less relevance for investment companies and, in particular, consider some areasinappropriate to the size and nature of the business of the Companies. Accordingly, theprovisions of the Code are complied with save that (i) the Company does not have a chiefexecutiveofficeroraseniorindependentdirector(theBoarddoesnotconsiderthisnecessaryforthe sizeof theCompany), (ii) theCompany conducts a formal reviewas towhether there is aneedforaninternalauditfunction,howevertheDirectorsdonotconsiderthataninternalauditwould be an appropriate control for a VCT, (iii) the Company does not have a remunerationcommittee given the size of the Company and as such the Board as a whole deals with anymattersofthisnatureand(iv)astheCompanyhasnomajorshareholders,theShareholdersarenotgiventheopportunitytomeetanynon-executiveDirectorsataspecificmeetingotherthantheannualgeneralmeeting.

17. TAKEOVERSANDMERGERS17.1 Mandatorytakeoverbids The City Code on Takeovers and Mergers (the “Takeover Code”) applies to all takeover and

merger transactions in relation to the Company, and operates principally to ensure thatshareholdersare treated fairlyandarenotdeniedanopportunity todecideon themeritsofatakeover, and that shareholders of the same class are afforded equivalent treatment. TheTakeover Code provides an orderly frameworkwithinwhich takeovers are conducted and thePanelonTakeoversandMergers(the“Panel”)hasnowbeenplacedonastatutoryfooting.TheTakeoversDirectivewas implemented in theUK inMay2006andsince6April2007haseffectthrough the CA 2006. The Directive applies to takeovers of companies registered in an EUmemberstateandadmittedtotradingonaregulatedmarketintheEUorEEA.

The Takeover Code is based upon a number of General Principles which are essentially

statementsofstandardsofcommercialbehaviour.GeneralPrincipleOnestatesthatallholdersofsecuritiesofanoffereecompanyofthesameclassmustbeaffordedequivalenttreatmentandifapersonacquirescontrolofacompanytheotherholdersofsecuritiesmustbeprotected.Thisis reinforced by Rule 9 of the Takeover Codewhich requires a person, together with personsacting inconcertwithhim,whoacquiressharescarryingvotingrightswhichamountto30%ormoreofthevotingrightstomakeageneraloffer. “Votingrights”forthesepurposesmeansallthevotingrightsattributabletothesharecapitalofacompanywhicharecurrentlyexercisableata general meeting. A general offer will also be required where a person who, together withpersonsactinginconcertwithhim,holdsnotlessthan30%butnotmorethan50%ofthevotingrights,acquiresadditionalshareswhichincreasehispercentageofthevotingrights.UnlessthePanel consents, the offermust bemade to all other shareholders, be in cash (or have a cashalternative)andcannotbeconditionalonanythingotherthanthesecuringofacceptanceswhichwill result in the offeror and persons acting in concertwith him holding shares carryingmorethan50%ofthevotingrights.

TherearenotinexistenceanycurrentmandatorytakeoverbidsinrelationtotheCompany.

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17.2 Squeezeout Section979of theCA2006providesthat if,withincertaintime limits,anoffer ismadefor the

share capital of the Company, the offeror is entitled to acquire compulsorily any remainingshares if ithas,byvirtueofacceptancesoftheoffer,acquiredorunconditionallycontractedtoacquirenot lessthan90%invalueofthesharestowhichtheofferrelatesandinacasewherethe shares towhich the offer relates are voting shares, not less than 90%of the voting rightscarriedbythoseshares.Theofferorwouldeffectthecompulsoryacquisitionbysendinganoticetooutstandingshareholderstellingthemthatitwillcompulsorilyacquiretheirsharesandthen,sixweeks fromthedateof thenotice,paytheconsideration for theshares to theCompanytoholdontrustfortheoutstandingshareholders.Theconsiderationofferedtoshareholderswhoseshares are compulsorily acquired under the CA 2006 must, in general, be the same as theconsiderationavailableunderthetakeoveroffer.

17.3 Sellout Section983of theCA2006permitsaminority shareholder to requireanofferor toacquire its

sharesiftheofferorhasacquiredorcontractedtoacquiresharesinacompanywhichamounttonotlessthan90%invalueofallthevotingsharesinthecompanyandcarrynotlessthan90%ofthe voting rights. Certain time limits apply to this entitlement. If a shareholder exercises itsrightsundertheseprovisions, theofferor isboundtoacquirethosesharesonthetermsof theofferoronsuchothertermsasmaybeagreed.

18. NOTIFICATIONSOFSHAREHOLDINGS TheprovisionsofDGTR5willapplytotheCompanyanditsShareholders. DGTR5setsoutthe

notification requirements for Shareholders and the Company where the voting rights of aShareholderexceed,reachorfallbelowthethresholdof3%andeach1%thereafterupto100%.DGTR 5 provides that disclosure by a Shareholder to the Companymust bemadewithin twotradingdaysoftheeventgivingrisetothenotificationrequirementandthattheCompanymustrelease details to a regulatory information service as soon as possible following receipt of anotificationandbynolaterthantheendofthetradingdayfollowingsuchreceipt.

19. GENERAL19.1 TheestimatedcostsandexpensesrelatingtotheOffer,assumingfullsubscription,includingthe

overallotmentfacility,allinvestorsbeingAdvisedInvestors,andallchoosingtopaytheiradvisersa 2.5% upfront fee, payable by the Company are estimated to amount to approximately £6.6 million in aggregate (excluding VAT). On the above assumptions, the aggregate total netproceedsoftheOffer,afterallfees,isexpectedtobe£113.4million.

19.2 GrantThorntonUKLLP, charteredaccountantsof3140RowanPlace, JohnSmithDrive,Oxford

BusinessParkSouth,OxfordOX42WBweretheauditoroftheCompanysince its incorporationuntil11November2013. JamesCowperLLP,3WesleyGate,Queen’sRoad,Reading,BerkshireRG1 4AP have been the auditor since 14 November 2013. James Cowper LLP has givenunqualifiedauditreportsonthestatutoryaccountsoftheCompanyforallofthefinancialyearssetoutinPartThree,withinthemeaningofSection495oftheCA2006.Noneofthosereportscontainedany statementsunder Section237(2)or (3)of theCA2006. The statutoryaccountsreferredtoinPartThreehavebeendeliveredtotheRegistrarofCompaniesinEnglandandWalespursuanttoSection242oftheCA2006.Theannualreportsfortheyearsended31October2013and31October2014wereprepared inaccordancewithUnitedKingdomAccountingStandards(UnitedKingdomGenerallyAcceptingAccounting Practice), the fair value rules of theCA2006and the Statement of Recommended Practice ‘Financial Statements of Investment TrustCompanies’andtheannualreportfortheyearended31October2015andthe interimreportsforthe6monthperiodsended30April2015and30April2016werepreparedinaccordancewithFinancialReportingStandard102.

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19.3 TheCompanyshalltakeallreasonablestepstoensurethatitsauditorsareindependentofitand

will obtain written confirmation from its auditors that it complies with guidelines onindependenceissuedbyitsnationalaccountancyandauditingbodies.

19.4 Howard Kennedy has given and has not withdrawn its written consent to the issue of this

documentwith the inclusionof itsnameandreferences to it in the formandcontext inwhichtheyappear.

19.5 The statements attributed to Octopus in this document have been included in the form and

context inwhich theyappearwith the consent andauthorisationofOctopus.Octopus acceptsresponsibility for those statements, and to the best of the knowledge and belief of Octopus(which has taken all reasonable care to ensure that such is the case) those statements are inaccordance with the facts and do not omit anything likely to affect the import of suchinformation.

19.6 TheCompanydoesnotassumeresponsibilityforthewithholdingoftaxatsource.19.7TherehasbeennosignificantchangeinthefinancialortradingpositionoftheCompanysince30

April 2016, the date to which the latest unaudited interim financial information has beenpublished,tothedateofthisdocument.

19.8 There have been no significant factors, whether governmental, economic, fiscal, monetary orpolitical, including unusual or infrequent events or new developments nor any known trends,uncertainties,demands, commitmentsorevents thatare reasonably likely tohaveaneffectontheGroup'sprospectsorwhichhavemateriallyaffectedtheGroup's incomefromoperationssofarastheCompanyandtheDirectorsareaware.

19.9 Shareholders will be informed, by means of the interim and/or annual report or through aRegulatory InformationServiceannouncement, if the investmentrestrictionswhichapplytotheCompanyasaVCTdetailedinthisdocumentarebreached.

19.10 TheCompany’scapital resourcesarerestricted insofaras theymaybeusedonly inputting intoeffect the Company’s investment policy, as set out in this document. There are no firmcommitments in respect of any of the Company’s principal future investments. As at 30 April2016, the Company had £99.1million of uninvested cashwhich has been retained forworkingcapitalandfollow-onornewinvestments.

19.11AllShareholdershavethesamevotingrightsinrespectofthesharecapitaloftheCompany.The

Companyisnotawareofanypersonwho,directlyorindirectly,exercisesorcouldexercisecontrolover theCompany,norofanyarrangements, theoperationofwhichmayatasubsequentdateresultinachangeofcontroloftheCompany.

19.12 The typical investor forwhom investment in theCompany isdesigned isaUK income taxpayer

over 18 years of age with an investment range of between £3,000 and £200,000 who, havingregard to the risk factors set out on pages 16 and 17, considers the investment policy of theCompanytobeattractive.Thismayincluderetail,institutionalandsophisticatedinvestors,aswellashighnetworthindividualswhoalreadyhaveaportfolioofnon-VCTinvestments.

19.13TheCompanydoesnothaveanymaterialshareholderswithdifferentvotingrights.

19.14ApplicationhasbeenmadefortheadmissionoftheNewSharestobelistedontheOfficialListandapplication will be made for the New Shares to be admitted to trading on the London StockExchange’smarket for listed securities. TheNewShareswill be in registered form. If, followingissue,recipientsofNewShareswishtoholdtheirNewSharesinuncertificatedform,theyshouldcontacttheCompany’sregistrar.

III:4.11

III:4.11

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19.15 All third party information in this Prospectus has been identified as such by reference to itssourceandineachinstancehasbeenaccuratelyreproducedand,sofarastheCompanyisawareand is able to ascertain from information published by the relevant party, no facts have beenomittedwhichwouldrenderthereproducedinformationinaccurateormisleading.

19.16 Pursuant to the investmentmanagementagreement,detailsofwhichare setout inparagraph

8.5above,OctopuswillprocuresafecustodytotheCompanyinrespectoftheun-investedcash,generalinvestmentanddealingservicesonadiscretionarybasisandotherrelatedfacilitieswhichmay include the following investments: shares in investee companies, debenture stock, loanstock,bonds,units,notes,certificatesofdeposit, commercialpaperorotherdebt instruments,municipal and corporate issues, depository receipts, cash term deposits, money marketsecurities,unit trusts,mutual funds,OEICs, investment fundsandsimilar fundsandschemes intheUnitedKingdomorelsewhere.Theseservicesexcludeanytransaction inrelationto futuresand options or other derivative type instruments or commodity (or derivative thereof) byOctopus.

19.17 The existing issued Shares will represent 72.7% of the enlarged ordinary share capital of the

CompanyimmediatelyfollowingcompletionoftheOffer,assumingtheOfferisfullysubscribed,includingtheoverallotmentfacility,with120,967,741NewSharesbeingissuedatanOfferPriceof99.2p,andonthatbasisShareholderswhodonotsubscribeundertheOfferwill,therefore,bedilutedby27.3%.

19.18 TheCompanyandtheDirectorsconsenttotheuseoftheProspectus,andacceptresponsibility

for the content of the Prospectus, with respect to subsequent resale or final placement ofsecuritiesbyfinancialintermediaries,fromthedateoftheProspectusuntilthecloseoftheOffer.TheOfferisexpectedtocloseonorbefore22August2017.Therearenoconditionsattachingtothisconsent.FinancialintermediariesmayusetheProspectusonlyintheUK.

19.19 Information on the terms and conditions of the Offerwill be given to investors by financial

intermediariesatthetimethattheOfferisintroducedtoinvestors.Anyfinancialintermediaryusing the Prospectusmust state on itswebsite that it is using the Prospectus in accordancewiththeconsentsetoutinparagraph19.18above.

20. DOCUMENTSAVAILABLEFORINSPECTION Copiesofthefollowingdocumentswillbeavailableforinspectionduringnormalbusinesshours

onanyweekday(publicholidaysexcepted)attheregisteredofficeoftheCompanyandHowardKennedywhilsttheOfferremainsopen:

20.1 theArticlesandtheNewArticles;20.2 thematerialcontractsreferredtoinparagraph8ofPartFiveabove;20.3 thehalfyearreportsoftheCompanyforthe6monthperiodsended30April2015and30April

2016and itsannualaccounts for theperiodsended31October2013,31October2014and31October2015;

20.4 theCircular;and20.5 thisdocument.

23August2016

III:10.4

I:23.2

XV5.1III:9.1

I:24

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DEFINITIONS

Thefollowingdefinitionsapplythroughoutthisdocument,unlessotherwiseexpressedorthecontextotherwiserequires:

“2014Offer” the offer for subscription by the Company as set out in theprospectusdated16September2014issuedbytheCompany

“2015Offer” the offer for subscription by the Company as set out in theprospectusdated8September2015issuedbytheCompany

“Acts” CA1985andCA2006

“Admission” the admission of New Shares to trading on the London StockExchange’smainmarketforlistedsecurities

“AdvisedInvestors” investorsundertheOfferwhoreceiveadvicefromtheirfinancialintermediaries

“Applicant” apersonapplyingforNewSharesusingtheApplicationForm

“Application” anapplicationforNewSharesundertheOffer

“ApplicationForm” theapplicationformrelatingtotheOfferwhichcanbefoundontheCompany’swebsite

“Articles” thearticlesofassociationoftheCompany

“Board”or“Directors” theboardofdirectorsoftheCompany

“CA1985” CompaniesAct1985

“CA2006” CompaniesAct2006

“CapitaAssetServices” atradingdivisionofCapitaRegistrarsLimited

“Circular” thecirculartoShareholdersdated23August2016

“Company” OctopusTitanVCTplc

“DividendReinvestmentScheme”or“DRIS”

the Company’s dividend reinvestment scheme, details of whicharesetoutinPartOneofthisdocument

“FCA” theFinancialConductAuthority

“FSMA” theFinancialServicesandMarketsAct2000,asamended

“GeneralMeeting” the general meeting of the Company to be held on 6 October2016(oranyadjournmentthereof)

"Group" the Company and its wholly owned subsidiary, Zenith HoldingCompanyLimited,alimitedcompanyincorporatedintheCaymanIslands whose registered office is at c/o Mourant OzannesCorporateServices (Cayman)Limited,94SolarisAvenue,CaymanBay,POBox1348,GrandCaymanKY1-1108,CaymanIslands

“HMRC” HMRevenueandCustoms

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“HowardKennedy” HowardKennedyCorporateServicesLLP

“IA1986” TheInsolvencyAct1986,asamendedfromtimetotime

“ITA2007” IncomeTaxAct2007,asamendedfromtimetotime

“KnowledgeIntensiveCompany” acompanysatisfyingtheconditionsinSection331(A)ofPart6ITA2007.

“Liquidators” WilliamDuncanandAdrianAllenofBakerTillyRestructuringandRecoveryLLP,beingtheliquidatorsforTitan1,Titan3,Titan4andTitan5

“LondonStockExchange” LondonStockExchangeplc

"MarketAbuseRegulation" MarketAbuseRegulation(596/2014/EU)

“NAV” netassetvalue

"NewArticles" the articles of association of the Company proposed to beadoptedattheGeneralMeeting

“NewShares” the Shares being offered under the Offer (and each a “NewShare”)

“Octopus”, the“Manager”or the“ReceivingAgents”

OctopusInvestmentsLimited

“OctopusVCT” anyventurecapitaltrust(whetheritstillexistsornot)whichis,orwasatanytime,managedbyOctopus

“Offer”

the offer for subscription for New Shares in respect of the taxyears2016/17and2017/18containedinthisdocument

“OfferPrice” thepriceperNewShare,assetoutinPartOneofthisdocument

“OfficialList” theofficiallistmaintainedbytheUKListingAuthority

“Proposals” theproposalstoeffecttheOffer,andtoapprovetheResolutions

“Prospectus” thisdocument

“ProspectusRules” theprospectusrulesmadeinaccordancewiththeEUProspectusDirective2003/71/EC

“QualifyingCompany” a company satisfying the requirementsofChapter4ofPart6ofITA2007

“QualifyingInvestments” shares in, or securities of, a Qualifying Company held by a VCTwhichmeetstherequirementsdescribedinchapter4ofPart6ITA2007

“QualifyingSubscriber” an individual who subscribes for New Shares and is aged 18 orover and satisfies the conditions of eligibility for tax reliefavailabletoinvestorsinaVCT

“RegulatoryInformationService”

a regulatory information service that is on the list of regulatoryinformationservicesmaintainedbytheFCA

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“Resolutions” theresolutionstobeproposedattheGeneralMeeting(andeacha“Resolution”)

“RiskFinanceStateAid” StateaidreceivedbyacompanyasdefinedinSection280B(4)ofITA2007

‘‘Scheme’’or“Merger” themergeroftheCompanywithTitan1,Titan3,Titan4andTitan5,which completedon27November2014, bymeansof placingTitan 1, Titan 3, Titan 4 and Titan 5 into members’ voluntaryliquidationpursuanttoSection110ofIA1986andtheacquisitionbytheCompanyofalloftheassetsandliabilitiesofTitan1,Titan3,Titan4andTitan5inconsiderationforSchemeShares

“SchemeShares” the Shares issued subject to the Scheme (and each a “SchemeShare”)

“Shareholders” holders of Shares, as the context permits (and each a“Shareholder”)

“Shares” ordinary shares of 10p each in the capital of the Company (andeacha“Share”)

“TCGA1992” TaxationofChargeableGainsAct1992

“TermsandConditions” the terms and conditions of Application, contained in thisdocumentonpages74to80

“Titan1” Octopus Titan VCT 1 plc (dissolved via members' voluntaryliquidation)

“Titan3” Octopus Titan VCT 3 plc (dissolved via members' voluntaryliquidation)

“Titan4” Octopus Titan VCT 4 plc (dissolved via members' voluntaryliquidation)

“Titan5” Octopus Titan VCT 5 plc (dissolved via members' voluntaryliquidation)

“TitanVCTs” theCompany,Titan1,Titan3,Titan4andTitan5

“venturecapitaltrust”or“VCTs” a company which is, for the time being, approved as a venturecapitaltrustasdefinedbySection259ofITA2007

“VCTRules” Part 6 ITA 2007 and every other statute (including any orders,regulationsorothersubordinatelegislationmadeunderthem)forthetimebeinginforceconcerningVCTsasamendedfromtimetotime

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TERMSANDCONDITIONSThefollowingtermsandconditionsapplytotheOffer.Thesectionheaded“ApplicationProcedure”assetoutbelowalsoformspartofthesetermsandconditionsofApplication.1. The maximum amount to be raised by the Company is £70 million with an over allotment

facilityofafurther£50million.ParticipationbytheCompanyintheOffer isconditionaluponthepassingbytheShareholdersofResolutions1and5attheGeneralMeeting. IntheeventthatResolutions1and5arenotpassedattheGeneralMeeting,theOfferwillnotproceedandApplicationmoniesalreadyreceivedby theCompanywillbe returnedto investors.TheOfferwill close once the Company has reached the aggregate maximum number of New Shareswhichmaybeissued.

2. Theminimuminvestmentis£3,000.Thereisnomaximuminvestment.3. ThecontractcreatedwiththeCompanybytheacceptanceofanApplication(oranyproportion

ofit)undertheOfferwillbeconditionalonacceptancebeinggivenbytheReceivingAgentsandadmissionof theNewSharesallotted in theCompanysubject to theOffer to theOfficial List(saveasotherwiseresolvedbytheBoard).

4. Theright isreservedbytheCompanytopresentallchequesandbanker’sdraftsforpayment

on receipt and to retain share certificates and Application monies pending clearance ofsuccessful Applicants’ cheques and bankers’ drafts. The Company may treat Applications asvalidandbindingevenifnotmadeinallrespectsinaccordancewiththeprescribedinstructionsandtheCompanymay,at itsdiscretion,acceptanApplication inrespectofwhichpayment isnotreceivedbytheCompany.IfanyApplicationisnotacceptedinfullorifanycontractcreatedbyacceptancedoesnotbecomeunconditional,theApplicationmoniesor,asthecasemaybe,thebalancethereof(savewheretheamount is lessthantheOfferPriceofoneShare)willbereturned(withoutinterest)byreturningeachrelevantApplicant’schequeorbanker’sdraftorby crossed cheque in favour of the Applicant, through the post at the risk of the person(s)entitledthereto.Inthemeantime,ApplicationmonieswillberetainedbytheReceivingAgentsinaseparateaccount.

5. BycompletinganddeliveringanApplicationForm,you:

I. irrevocablyoffertosubscribeforNewSharesintheCompanyundertheOfferinthemonetaryamountspecifiedinyourApplicationForm(orsuchlesseramountforwhichyourApplicationisaccepted),whichshallbeusedtopurchasetheNewSharesattheOfferPrice,determinedbydividing themost recently announcedNAV per Share of the Company by 0.945 to allow forissuecosts,onthetermsofandsubjecttothisdocumentandsubjecttothememorandumandarticles of association of the Company. Investors who are existing, or who were previously,shareholders of any Octopus VCT will benefit from the costs of the Offer being reduced by1.0%, or by 2% if valid applications are received on or before 13 December 2016. OtherApplicantswhosevalidapplicationsare receivedonorbefore13December2016willbenefitfromcostsoftheOfferbeingreducedby1.0%.ApplicantswillreceivethesereductionsintheformofadditionalNewShares,whichwillbepaid forbyOctopus.Where theShareprice fortheCompanyhasbeendeclaredex-dividendontheLondonStockExchange,theNAVusedforpricingundertheOfferwillbeex-dividend. InrespectoftheOffer,theNAVperSharewillberoundeduptoonedecimalplaceandthenumberofNewSharestobeissuedwillberoundeddowntothenearestwholenumber(fractionsofNewShareswillnotbeallotted);

II. agree that your Application may not be revoked and that this paragraph shall constitute acollateralcontractbetweenyouandtheCompanywhichwillbecomebindingupondespatchbypost to, or (in the case of delivery by hand) on receipt by, the Receiving Agents of yourApplicationForm;

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III. agreeandwarrantthatyourchequeorbanker’sdraftmaybepresentedforpaymentonreceiptandwillbehonouredonfirstpresentationandagreethatifitisnotsohonouredyouwillnotbeentitledtoreceivecertificatesinrespectoftheNewSharesallottedtoyouuntilyoumakepaymentinclearedfundsforsuchNewSharesandsuchpaymentisacceptedbytheCompanyinitsabsolutediscretion(whichacceptanceshallbeonthebasisthatyouindemnifyitandtheReceivingAgentsagainstallcosts,damages,losses,expensesandliabilitiesarisingoutoforinconnectionwiththefailureofyourremittancetobehonouredonfirstpresentation)andyouagree that, at any time prior to the unconditional acceptance by the Company of such latepayment, theCompanymay (without prejudice to its other rights) rescind the agreement tosubscribeforsuchNewSharesandmayissuesuchNewSharestosomeotherperson,inwhichcase youwill not be entitled to any payment in respect of suchNewShares, other than therefund to you, at your risk, of the proceeds (if any) of the cheque or banker’s draftaccompanyingyourApplication,withoutinterest;

IV. agree that, in respect of thoseNewShares forwhich yourApplication is received and is notrejected, your Application may be accepted at the election of the Company either bynotification to the London Stock Exchange of the basis of allocation and allotment, or bynotificationofacceptancethereoftotheReceivingAgents;

V. agree that anymonies refundable to youby theCompanymaybe retainedby theReceivingAgentspendingclearanceofyourremittanceandanyverificationofidentitywhichis,orwhichthe Company or the Receiving Agentsmay consider to be, required for the purposes of theMoneyLaunderingRegulations2007andthatsuchmonieswillnotbearinterest;

VI. authorise the Receiving Agents to send share certificates in respect of the number of NewShares for which your Application is accepted and/or a crossed cheque for any moniesreturnable,bypost,without interest, toyouraddress setout in theApplicationFormand toprocurethatyournameisplacedontheregisterofmembersoftheCompanyinrespectofsuchNewShares;

VII. agreethatallApplications,acceptancesofApplicationsandcontractsresultingtherefromshallbe governed in accordance with English law, and that you submit to the jurisdiction of theEnglishcourtsandagreethatnothingshalllimittherightoftheCompanyorOctopustobringany action, suit or proceeding arising out of, or in connection with any such Applications,acceptancesofApplicationsandcontractsinanyothermannerpermittedbylaworanycourtofcompetentjurisdiction;

VIII. confirm that, in making such Application, you are not relying on any information orrepresentation in relation to the Company other than the information contained in thisdocument and accordingly you agree that no person responsible solely or jointly for thisdocument,thecovercorrespondenceoranypartthereoforinvolvedinthepreparationthereofshall have any liability for such information or representation (save for fraudulentmisrepresentationorwilfuldeceit);

IX. irrevocablyauthorise theReceivingAgents todoall thingsnecessary toeffect registrationofany New Shares subscribed by or issued to you into your name and authorise anyrepresentativeoftheReceivingAgentstoexecuteanydocumentrequiredtherefore;

X. agree that, havinghad theopportunity to read thisdocument, you shall bedeemed tohavehadnoticeofallinformationandstatementsconcerningtheCompanyandtheOffercontainedtherein;

XI. confirmthatyouhavereviewedtherestrictionscontained inparagraph6belowandwarrantthat you are not a “US Person” as defined in the United States Securities Act of 1933(“SecuritiesAct”)(asamended),noraresidentofCanadaandthatyouarenotapplyingforanyShareswithaviewto theiroffer, saleordelivery toor for thebenefitofanyUSPersonoraresidentofCanada;

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XII. declarethatyouareanindividualaged18orover;

XIII. agreethatalldocumentsandchequessentbypostto,byoronbehalfofeithertheCompanyor

theReceivingAgents,willbesentattheriskofthepersonentitledthereto;

XIV. agree,onrequestbytheCompanyorOctopus,todisclosepromptlyinwritingtoOctopus,anyinformation which Octopus may reasonably request in connection with your Applicationincluding,without limitation, satisfactory evidenceof identity to ensure compliancewith theMoney Laundering Regulations and authorise the Company or Octopus to disclose anyinformationrelatingtoyourApplicationastheCompanyorOctopusconsiderappropriate;

XV. agree that Octopus will not treat you as its customer by virtue of your Application beingaccepted or owe you any duties or responsibilities concerning the price of the New Sharessubject to theOffer or the suitability for youof an investment inNewShares subject to theOfferorberesponsibletoyouforprovidingtheprotectionsaffordedtoitscustomers;

XVI. where applicable, authorise the Company to make on your behalf any claim to relief fromincometaxinrespectofanydividendspaidbytheCompany;

XVII. declarethattheApplicationFormhasbeencompletedtothebestofyourknowledge;

XVIII. undertakethatyouwillnotifytheCompanyifyouarenotorceasetobeeitheraVCTqualifyingsubscriberorbeneficiallyentitledtotheNewShares;

XIX. declare that a loanhasnotbeenmade to youor any associate,whichwouldnothavebeenmadeorwouldnothavebeenmadeonthesameterms,butforyouofferingtosubscribefor,or acquiring, New Shares under the Offer and that such New Shares are being acquired forbonafidecommercialpurposesandnotaspartofaschemeorarrangement,themainpurposeofwhichistheavoidanceoftax;and

XX. agreethatinformationprovidedontheApplicationFormmaybeprovidedtotheregistrarsandReceivingAgentstoprocessshareholdingsdetailsandsendnotificationstoyou.

6. Nopersonreceivingacopyofthisdocument,coveringcorrespondenceoranApplicationForm

inanyterritoryotherthantheUK,maytreatthesameasconstitutinganinvitationoroffertohim, nor should he in any event use such Application Form unless, in the relevant territory,such an invitation or offer could lawfully be made to him or such Application Form couldlawfullybeusedwithoutcontraventionofanyregulationsorotherlegalrequirements.ItistheresponsibilityofanypersonoutsidetheUKwishingtomakeanApplicationtosatisfyhimselfasto full observance of the laws of any relevant territory in connection therewith, includingobtaining any requisite governmental or other consents, observing any other formalitiesrequiringtobeobservedinsuchterritoryandpayinganyissue,transferorothertaxesrequiredtobepaidbysuchterritory.

7. TheNewShareshavenotbeenandwillnotberegisteredundertheUnitedStatesSecuritiesAct

of 1933, as amended, and may not be offered or sold in the United States of America, itsterritoriesorpossessionsorotherareassubjecttoitsjurisdiction(the“USA”).Inaddition,theNew Shares have not been and will not be registered under the United States InvestmentCompany Act of 1940, as amended. Octopuswill not be registered under the United StatesInvestmentAdvisersAct of 1940, as amended.NoApplicationwill be accepted if it bears anaddressintheUSA.

8. ThebasisofallocationwillbedeterminedbytheCompany(afterconsultationwithOctopus)in

itsabsolutediscretion.TherightisreservedbytheBoardtorejectinwholeorinpartandscaledown and/or ballot any Application or any part thereof including, without limitation,Applications in respect of which any verification of identity which the Company or Octopus

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considermayberequiredforthepurposesoftheMoneyLaunderingRegulationshasnotbeensatisfactorilysupplied,andtoreducetheminimuminvestmentof£3,000.DealingspriortotheissueofcertificatesforNewShareswillbeattheriskofApplicants.ApersonsodealingmustrecognisetheriskthatanApplicationmaynothavebeenacceptedtotheextentanticipatedoratall.

9. MoneyLaunderingRegulations

Investorsshouldbeawareofthefollowingrequirementsinrespectoftheabovelaw.

UndertheMoneyLaunderingRegulations,Octopusisrequiredtochecktheidentityofclientswho invest over £10,000 or who invest using third party cheques. Octopus may thereforeundertakeanelectronic search for thepurposesof verifying your identity. Todo soOctopusmaycheckthedetailsyousupplyagainstyourparticularsonanydatabase(publicorother)towhich Octopus has access. Octopus may also use your details in the future to assist othercompaniesforverificationpurposes.Arecordofthissearchwillberetained.IfOctopuscannotverify your identity it may ask for a recent, original utility bill and an original HMRC TaxNotificationoracopyofyourpassportcertifiedbyabank,solicitororaccountantfromyouoraClientVerificationCertificatefromyourIFA.

Ifwithinareasonableperiodoftimefollowingarequestforverificationofidentity,andinanycase by no later than 3.00 pm on the relevant date of allotment, Octopus has not receivedevidencesatisfactorytoitasaforesaid,Octopus,atitsabsolutediscretion,mayrejectanysuchApplication in which event the remittance submitted in respect of that Application will bereturned to the Applicant (without prejudice to the rights of the Company to undertakeproceedingstorecoveranylosssufferedbyitasaresultofthefailuretoproducesatisfactoryevidenceofidentity).

Yourchequeorbankers’draftmustbedrawninsterlingonanaccountatabranch(whichmustbe intheUnitedKingdom,theChannel IslandsortheIsleofMan)ofabankwhich iseitheramemberoftheChequeandCreditClearingCompanyLimitedortheCHAPSClearingCompanyLimited,amemberoftheScottishClearingBanksCommitteeortheBelfastClearingCommitteeor which has arranged for its cheques or bankers’ drafts to be cleared through facilitiesprovided for by members of any of those companies or associations and must bear theappropriate sorting code in the top right hand corner. The right is reserved to reject anyApplicationForminrespectofwhichthechequeorbankers’drafthasnotbeenclearedonfirstpresentation.

10. CostsoftheOffer

Forall investors,theOfferPricewillbedeterminedbyaformulareflectingtheNAVperShareadjustedforanallowanceforthemajorityofthecostsoftheOffer.

Theformulais:themostrecentlyannouncedNAVperShare,dividedby0.945.

Investors who are existing, or who were previously, shareholders of any Octopus VCT willbenefit from the costsof theOfferbeing reducedby1.0%,orby2% if valid applicationsarereceived on or before 13 December 2016. Other Applicants whose valid applications arereceivedonorbefore13December2016willbenefitfromcostsoftheOfferbeingreducedby1.0%.ApplicantswillreceivethesereductionsintheformofadditionalNewShares,whichwillbepaidforbyOctopus.

Inconsideration forpromotingtheOffer, theCompanywillpayan initialchargeof3%of thegross sums invested in the Offer to Octopus. This is payable in the same way on allsubscriptionstotheOffer.FromthissumOctopuswilldischargeallexternalcostsofadviceand

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theirowncosts inrespectoftheOffer. Inaddition,therearethenfourcategoriesofoptions,whicharedeterminedbythecircumstancesofeach investorandtheirexplicit instructions, inrespect of which payments can bemade to advisers and other intermediaries. These are asfollows:

1) Adirectinvestment

Investorswhohavenotinvestedtheirmoneythroughafinancialintermediary/adviserandhaveinvesteddirectlyintotheCompany.

In consideration for promoting the Offer, if an application is made directly (not through anintermediary) then the Companywill payOctopus an additional initial charge of 2.5%of theinvestment amount and an additional annual ongoing charge of 0.5% of the investmentamount’slatestNAVforuptonineyears,providedtheinvestorcontinuestoholdtheShares.

2) Anadvised investmentwhereadvice is receivedforanupfront feewithanongoingadviser

charge

Investors who have invested in the Offer through a financial intermediary/adviser and havereceivedupfrontadviceandwillreceiveongoingadvice.

TheCompanycanfacilitateapaymentonbehalfofaninvestortoanintermediary/adviser(an‘initialadvisercharge’)ofupto2.5%oftheinvestmentamount.Iftheinvestorhasagreedwithhis/her intermediary/adviser to pay a lower initial adviser charge, the balance (up to amaximum of 2.5%)will be used for the issue and allotment of New Shares for the investor,issuedat themost recently announcedNAVper Share,dividedby0.945asdescribed inPartTwo.TheCompanycanalsofacilitateannualpaymentstoanintermediary/adviser(‘ongoingadvisercharges’) in respectofongoingadvisory servicesprovidedby the intermediary/adviser to theinvestorofupto0.5%perannumoftheinvestmentamount’slatestNAVforuptonineyearswhilsttheinvestorcontinuestoholdtheShares.Iftheinvestorchoosestopaytheiradviserlessthan0.5%annually,theremainingamountwillbeusedfortheissueandallotmentofadditionalNewSharesfortheinvestor,atthethenmostrecentlyannouncedNAVperShare.AnyresidualamountlessthanthecostofaNewSharewillbedonatedtoacharityapprovedbytheBoard.

If the investor terminates their relationshipwith the intermediary/adviser then theCompanywill notmakeany furtherpaymentsofongoingadviser charges to that intermediary/adviser.The Companywill facilitate ongoing adviser charges to a new adviser if an investor changestheiradviserandrequeststheongoingadviserchargetobepaidtotheirnewadviser.

3) Anadvised investmentwhereadvice isreceivedforanupfrontfeewithnoongoingadviser

charge

Investors who have invested in the Offer through a financial intermediary/adviser and havereceivedupfrontadvice including investorswhoare investingthrough intermediaries/advisersusingfinancialplatforms.Whereaninvestoragreedtoanupfrontfeeonly,theCompanycanfacilitateapaymentofaninitialadviser chargeofup to4.5%of the investmentamount. If the investorchooses topay

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theirintermediary/adviserlessthanthemaximuminitialadvisercharge,theremainingamountwillbeusedfortheissueandallotmentofadditionalNewSharesfortheinvestor,issuedatthemost recently announced NAV per Share, divided by 0.945 as described above. In thesecircumstancestheCompanywillnotfacilitateongoingannualpayments.

Inbothcases(2)or(3),shouldtheinvestorchoosetopaytheadvisermorethan2.5%or4.5%respectively,theexcessamountwillhavetobesettledbytheinvestordirectlywiththeadviser.

4) Anon-advisedinvestmentusinganintermediary

Investors who have invested their money through a financial intermediary and have notreceivedadvice.

An initial commission of up to 2.5% of the investment will be paid by the Company to theintermediary.Anannualongoingchargeof0.5%oftheinvestmentamount’slatestNAVwillbepaid by the Company to the intermediary. Such commissionwill be available for up to nineyears provided that the intermediary continues to act for the investor and the investorcontinuestobethebeneficialowneroftheShares.

Thesechargesmay,accordingtotheproportionofAdvisedInvestorswhereadviceisreceivedfor an upfront fee only, create some limited reduction of the NAV per Share immediatelysubsequent to subscriptions in the Offer being made. This effect will be mitigated and isultimatelyexpected tobemore thancompensated, forcontinuing investors,by theexpectedbenefitsderivedfromalargerpoolofinvestablefundsandthefinancialbenefitinsubsequentperiodsoftheabsenceofongoingadviserchargesinrespectofsuchinvestments.

Thereinvestmentarrangementsrelatingtoongoingadviserchargeswhicharedescribedabovewill only operate for so long as an investor remains the holder of the New Shares. AnypurchaserofthoseShareswillnotbenefitfromthereinvestmentarrangementssetoutaboveirrespectiveof the adviser chargeswhich theyhave agreedwith their adviser. This thereforemeans that any purchaser of Shares will not benefit from the issue or allotment of anyadditionalNewSharesunderthearrangementssetoutabove.Any additional New Shares which are issued under the arrangements which are describedabovewillbe issued in fulland final satisfactionofanycashsumswhichwouldotherwisebeduetotheinvestor.TheCompanydoesnotherebyacceptorassumeorundertakeanyliabilityorobligationofanynaturewhatsoever toanyadviseras regards thepaymentofanyadvisercharges(whethersuchchargesareinitialadviserchargesorongoingadvisercharges).Theroleof the Company is simply to facilitate such payments to the extent permitted by applicablerulesandregulations.Theabovepaymentsaresubjecttoanyfuturechangesintheapplicablerulesandregulations.

Example

OntheassumptionthataninvestordoesnotreceiveanyadviceinrespectoftheirApplication,an illustrationof thepricing formula foranaggregate investmentof£10,000under theOffer(using the most recently published unaudited NAV of the Company as at the date of thisdocument)issetoutbelow:

UnauditedNAVasat30April2016*(p)

OfferPrice(p) Application(£) NumberofNewSharestobeallotted

93.7 99.2 £10,000 10,080

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*NAVex-dividendwhereapplicable

TheOfferPricemayvarybetweenallotmentsbasedonthemovementinthepublishedNAVofthe Shares. The cost of the Offer is capped at 7.5%. Octopus has agreed to indemnify theCompanyagainstthecostsoftheOfferinexcessofthisamount.

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ANNEXI

TERMSANDCONDITIONSOFTHEDIVIDENDREINVESTMENTSCHEME(THE“DRIS”)OFTHECOMPANY

1. Elections toparticipate in theDRISshouldbeaddressed to theDRISSchemeAdministrator,CapitaAssetServices(“DRISSchemeAdministrator”)inaccordancewithcondition11andwillonlybeeffectivefordividendstobepaid15daysfollowingreceiptoftheelectionbytheDRISSchemeAdministrator.

2. (a) The Company, acting through the DRIS Scheme Administrator, shall have absolutediscretiontoacceptorrejectelections.AnapplicantshallbecomeamemberoftheDRISupon acceptance of his or her election by the DRIS Scheme Administrator on theCompany’sbehalf(“Participants”).TheDRISSchemeAdministratorwillprovidewrittennotification if an election is rejected. Only registered shareholders of the Company(“Shareholders”)mayjointheDRIS.

(b) TheCompanyshallapplydividendstobepaidtoParticipantsonordinarysharesof10peach (“Shares”) in theCompany in respectofwhichanelectionhasbeenmade in theallotment of further Shares. The DRIS Scheme Administrator shall not have thediscretion, and Participantsmay not instruct theDRIS SchemeAdministrator, to applythosedividends (“funds”) towardsany investmentsother than investment inSharesassetoutinthiscondition2(b).

(c) Participants who are Shareholders may only participate in the DRIS if all SharesregisteredintheirnamearemandatedtotheDRIS.

(d) By joining the DRIS, Participants instruct the DRIS Scheme Administrator that themandatewill apply to the full numberof Sharesheldby them in respectofwhich theelectionismade,asenteredontotheshareregisteroftheCompanyfromtimetotime.

(e) InrelationtonewSharestobeallottedinrelationtoadividendsuchShareswillonlybeallotted to the registered shareholder and not any beneficial holder. NomineeParticipants shall not be entitled to instruct the DRIS Scheme Administrator to allotSharestoabeneficialholder(andParticipantsareadvisedtoreadcondition15inrespectoftheconsequencesforVCTTaxreliefs).

3. (a) OnorassoonaspracticableafteradayonwhichadividendontheSharesisduetobepaidtoaParticipantor, ifsuchdayisnotadealingdayontheLondonStockExchange,the dealing day thereafter (“Payment Date”), the Participant’s funds held by theCompanyshall,subjecttoconditions9,10and19overleafandtheCompanyhavingtherequisiteshareholderauthoritiestoallotShares,beappliedonbehalfofthatParticipanttosubscribeforthemaximumnumberofwholenewShareswhichcanbeallottedwiththefunds.

(b) Thenumberof Shares tobeallotted toaParticipantpursuant to condition3(a) aboveshall be calculated by dividing the Participant’s funds by the greater of (i) the lastpublishednetassetvalueperexistingOrdinaryShareand(ii) themidmarketpriceperOrdinaryShareasquotedontheLondonStockExchangeatthecloseofbusinessonthe10thbusinessdayprecedingthedateofissueofsuchShares.Shareswillnotbeallottedatlessthantheirnominalvalue.

(c) FractionalentitlementswillnotbeallottedandanyresidualcashbalanceoflessthantheamountrequiredtosubscribeforafurthernewOrdinaryShare,assetoutin3(b)above,willbedonatedtoaregisteredcharityatthediscretionoftheCompany.

(d) TheCompanyshallnotbeobligedtoallotOrdinarySharesundertheDRIStotheextentthat the total number of Shares allottedby theCompanypursuant to theDRIS in any

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financialyearwouldexceed10%oftheaggregatenumberofSharesonthefirstdayofsuchfinancialyear.

(e) TheCompanyshall immediatelyafterthesubscriptionofSharesinaccordancewiththecondition at 3(a) above take all necessary steps to ensure that those Shares shall beadmittedtotheOfficialListandtotradingonthepremiumsegmentofthemainmarketoftheLondonStockExchange,providedthatatthetimeofsuchsubscriptiontheexistingShares in issue are so admitted to the Official List and to trading on the premiumsegmentofthemainmarketoftheLondonStockExchange.

4. TheDRISSchemeAdministratorshallassoonaspracticableaftertheallotmentofShares inaccordance with condition 3 procure (i) that the Participants are entered onto the ShareRegisteroftheCompanyastheregisteredholdersofthoseShares(ii)thatsharecertificates(unlesssuchSharesaretobeuncertified)and,whereapplicable, incometaxvouchers(“TaxVouchers”) are sent to Participants at their own risk and (iii) that Participants receive astatementdetailing:

(a) thetotalnumberofSharesheldattherecorddateforwhichavalidelectionwasmade;

(b) thenumberofSharesallotted;

(c) thepriceperOrdinaryShareallotted;

(d) thecashequivalentoftheSharesallotted;and

(e) thedateofallotmentoftheShares.

5. AllcostsandexpensesincurredbytheDRISSchemeAdministratorinadministeringtheDRISwillbebornebytheCompany.

6. EachParticipantwarrantstotheDRISSchemeAdministratorthatallinformationsetoutintheapplicationform(includinganyelectronicelection)onwhichtheelectiontoparticipateintheDRIS iscontained iscorrectandtotheextentanyofthe informationchangesheorshewillnotifythechangestotheDRISSchemeAdministratorandthatduringthecontinuanceofhisorherparticipationintheDRISheorshewillcomplywiththeprovisionsofcondition7below.

7. The right to participate in the DRIS will not be available to any person who is a citizen,resident or national of, orwhohas a registered address in, any jurisdiction outside theUKunlesssuchrightcouldproperlybemadeavailabletosuchperson.NosuchpersonreceivingacopyoftheDRISdocumentsmaytreatthemasofferingsucharightunlessanoffercouldproperly be made to such person. It is the responsibility of any Shareholder wishing toparticipate in theDRIS to be satisfied as to the full observance of the laws of the relevantjurisdiction(s) in connection therewith, including obtaining any governmental or otherconsentswhichmayberequiredandobservinganyotherformalitiesneedingtobeobservedinanysuchjurisdiction(s).

8. ParticipantsacknowledgethattheDRISSchemeAdministratorisnotprovidingadiscretionarymanagement service. Neither the DRIS Scheme Administrator nor the Company shall beresponsibleforanylossordamagetoParticipantsasaresultoftheirparticipationintheDRISunless due to the negligence or wilful default of the DRIS Scheme Administrator or theCompanyortheirrespectiveemployeesandagents.

9. Participantsmay:

(a) atanytimebynoticetotheDRISSchemeAdministratorterminatetheirparticipationintheDRISandwithdrawanyfundsheldbytheCompanyontheirbehalf;and

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(b) inrespectofSharestheyholdasnomineeandsubjecttocondition2(e),givenoticetothe DRIS Scheme Administrator that, in respect of a forthcoming Payment Date, theirelectiontoreceiveSharesisonlytoapplytoaspecifiedamountduetotheParticipantassetoutinsuchnotice.

SuchnoticesshallnotbeeffectiveinrespectofthenextforthcomingPaymentDateunlessitisreceivedbytheDRISSchemeAdministratoratleast15dayspriortosuchPaymentDate.Inrespectofnoticesunder(a)above,suchnoticewillbedeemedtohavebeenservedwheretheParticipantceasestoholdanyShares.Uponreceiptofnoticeoftermination,allfundsheldbythe Company on the Participant’s behalf shall be returned to the Participant as soon asreasonably practical at the address set out in the register of members, subject to anydeductionswhichtheCompanymaybeentitledorboundtomakehereunder.

10. TheCompanyshallbeentitledatitsabsolutediscretion,atanytimeandfromtimetotimeto:

(a) suspendtheoperationoftheDRIS;

(b) terminatetheDRISwithoutnoticetotheParticipants;and/or

(c) resolvetopaydividendstoParticipantspartlybywayofcashandpartlybywayofnewSharespursuanttotheDRIS.

11. Participants who wish to participate in the DRIS in respect of new Shares to be issuedpursuant to a prospectus or top-up offer document may tick the relevant box on theapplicableapplicationform.

ParticipantswhowishtoparticipateintheDRISandwhoalreadyhaveSharesissuedtothemheld in certificated form, i.e. not in CREST, should complete and sign aMandate Formandreturn itno later than15daysprior to thedividendpaymentdatetoCapitaAssetServices,TheRegistry,34BeckenhamRoad,Beckenham,KentBR34TU.PersonalisedMandateFormscanbeobtained fromCapitaAssetServicesat theaddressaboveorby telephoning+44 (0)3716640324. Calls are charged at the standard geographic rate andwill vary byprovider.CallsoutsidetheUnitedKingdomwillbechargedattheapplicableinternationalrate.CapitaAssetServicesareopenbetween9am–5.30pm,MondaytoFridayexcludingpublicholidaysin England andWales.Please note that Capita Asset Services cannot provide any financial,legal or tax advice and calls may be recorded and monitored for security and trainingpurposes.

ParticipantswhowishtoparticipateintheDRISandwhoalreadyhaveSharesissuedtothemheldinuncertificatedforminCREST(andwhichwereinuncertificatedformasattherelevantrecorddate),canonlyelecttoreceiveadividendintheformofnewSharesbymeansoftheCRESTproceduretoeffectsuchanelection. NoothermethodofelectionwillbepermittedundertheDRISandwillberejected.Bydoingso,suchShareholdersconfirmtheirelectiontoparticipateintheDRISandtheiracceptanceoftheDRIStermsandconditions.IfaParticipantisaCRESTsponsoredmember,theyshouldconsulttheirCRESTsponsor,whowillbeabletotakeappropriateactionontheirbehalf. AllelectionsmadeviatheCRESTsystemshouldbesubmittedusing theDividendElection InputMessage inaccordancewith theproceduresasstatedintheCRESTReferenceManual.TheDividendElectionInputMessagesubmittedmustcontainthenumberofSharesonwhichtheelectionisbeingmade.Iftherelevantfieldisleftblankorcompletedwithzero,theelectionwillberejected.IfaParticipantentersanumberof Shares greater than the holder in CREST on the relevant record date for dividend thesystem will automatically amend the number down to the record date holding. Wheninputting the election, a ‘single drip’ election should be selected (the Corporation ActionNumberforthiscanbefoundontheCRESTGUI).Evergreenelectionswillnotbepermitted.Participantswhowish to receivenewShares insteadof cash in respectof futuredividends,must complete a Dividend Election Input Message on each occasion otherwise they willreceivethedividendincash. ElectionsviaCRESTshouldbereceivedbyCRESTnolaterthan

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5.00 pm. on such date that is at least 15 days before the dividend payment date for therelevantdividendinrespectofwhichyouwishtomakeanelection.Onceanelectionismadeusing the CREST Dividend Election Input Message it cannot be amended. Therefore, if aCRESTShareholderwishes to change theirelection, thepreviouselectionwouldhave tobecancelled.

12. A written mandate form will remain valid for all dividends paid to the Participant by theCompanyuntilsuchtimeastheParticipantgivesnoticeinwritingtoCapitaAssetServicesthathenolongerwishestoparticipateintheDRIS.

13. The Company shall be entitled to amend the DRIS Terms and Conditions on giving onemonth’snotice inwriting toallParticipants. If suchamendmentshavearisenasa resultofanychangeinstatutoryorotherregulatoryrequirements,noticeofsuchamendmentwillnotbe given to Participants unless in the Company’s opinion the changematerially affects theinterestsoftheParticipants.AmendmentstotheDRISTermsandConditionswhichareofaformal, minor or technical nature or made to correct a manifest error and which do notadverselyaffecttheinterestsofParticipantsmaybeeffectedwithoutnotice.

14. By ticking the relevant election box and completing and delivering the application form orsubmittingtheelectionelectronically,theParticipant:

(a) agreestoprovidetheCompanywithanyinformationwhichitmayrequestinconnectionwithsuchapplicationandtocomplywithlegislationrelatingtoventurecapitaltrustsorotherrelevantlegislation(asthesamemaybeamendedfromtimetotime);and

(b) declares thata loanhasnotbeenmadetotheParticipantonwhosebehalf theSharesare held or any associate of either of them,whichwould not have beenmadeor nothave been made on the same terms but for the Participant electing to receive newShares and that the Shares arebeing acquired forbona fide investmentpurposes andnotaspartofaDRISorarrangementthemainpurposesofwhichistheavoidanceoftax.

15. ElectionsbyindividualsforSharesshouldattractapplicableVCTtaxreliefs(dependingontheparticular circumstances of a particular individual) for the tax year inwhich the Shares areallotted provided that the issue of Ordinary shares under the DRIS is within the investor’sannual £200,000 limit. Participants and beneficial owners are responsible for ascertainingtheir own tax status and liabilities and neither the DRIS Scheme Administrator nor theCompanyacceptsanyliabilityintheeventthattaxreliefsarenotobtained.Beneficialownersofsharesheldthroughnomineesshouldobtaintaxadviceinrelationtotheirownparticularcircumstances.TheTaxVouchercanbeusedtoclaimanyrelevantincometaxreliefeitherbyobtaining from the HM Revenue & Customs an adjustment to the Participant’s tax codingunderthePAYEsystemorbywaitinguntiltheendoftheyearandusingtheSelfAssessmentTaxReturn.

16. TheCompanywill,subjecttoconditions9,10and19,issueSharesinrespectofthewholeofanydividendpayable(fortheavoidanceofdoubtirrespectiveofwhethertheamountoftheallotmentisgreaterthananymaximumlimitsimposedfromtimetotimetobeabletobenefitfromanyapplicableVCTtaxreliefs)unlesstheDRISSchemeAdministratorhasbeennotifiedtothecontraryinwritingatleast15daysbeforeaPaymentDate.

17. ShareholderselectingtoreceiveSharesratherthanacashdividendwillbetreatedashavingreceivedanormaldividend.ShareholdersqualifyingforVCTtaxreliefsshouldnotbeliabletoincometaxonsharesallottedinrespectofdividendsfromqualifyingVCTshares.

18. For capital gains tax purposes, Shareholderswho elect to receive Shares instead of a cashdividendarenottreatedashavingmadeacapitaldisposaloftheirexistingShares.ThenewShareswillbetreatedasaseparateassetforcapitalgainspurposes.

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19. TheCompanyshallnotbeobligedtoacceptanyapplicationorissueShareshereunderiftheDirectorssodecideintheirabsolutediscretion.TheCompanymaydoorrefrainfromdoinganythingwhich, in the reasonableopinionof theDirectors, isnecessary tocomplywith thelawofanyjurisdictionoranyrules,regulationsorrequirementsofanyregulatoryauthorityorotherbody,whichisbindingupontheCompanyortheDRISSchemeAdministrator.

20. TheamountofanyclaimorclaimsaParticipanthasagainsttheCompanyortheDRISSchemeAdministratorshallnotexceedthevalueofsuchParticipant’sSharesintheDRIS.Nothinginthese DRIS Terms and Conditions shall exclude the Company or the DRIS SchemeAdministrator from any liability caused by fraud, wilful default or negligence. Neither theCompanynortheDRISSchemeAdministratorwillberesponsiblefor:

(a) acting or failing to act in accordance with a court order of which the DRIS SchemeAdministratorhasnotbeennotified(whateverjurisdictionmaygovernthecourtorder);or

(b) forged or fraudulent instructions and will be entitled to assume that instructionsreceived purporting to be from an Shareholder (or, where relevant, a nominee) aregenuine;or

(c) losses,costs,damagesorexpensessustainedor incurredbyanShareholder (or,whererelevant,anominee)byreasonof industrialactionoranycausebeyondthecontrolofthe Company or the DRIS Scheme Administrator, including (without limitation) anyfailure, interruptionordelay inperformanceof theobligationspursuant to theseDRISTerms and Conditions resulting from the breakdown, failure or malfunction of anytelecommunicationsorcomputerserviceorelectronicpaymentsystemorCREST;or

(d) anyindirectorconsequentialloss.

21. TheseDRISTermsandConditionsareforthebenefitofaParticipantonlyandshallnotconferany benefits on, or be enforceable by, a third party and the rights and/or benefits a thirdpartymayhavepursuanttotheContracts(RightsofThirdParties)Act1999areexcludedtothefullestpossibleextent.

22. AllnoticesandinstructionstobegiventotheDRISSchemeAdministratorshallbeinwritingand delivered or posted to Capita Asset Services, The Registry, 34 Beckenham Road,Beckenham,KentBR34TU.

23. TheseDRIS Terms andConditions shall be governedby, and construed in accordancewith,English lawandeachParticipantsubmitstothe jurisdictionoftheEnglishcourtsandagreesthatnothingshalllimittherightoftheCompanytobringanyaction,suitorproceedingarisingoutoforinconnectionwiththeDRISinanyothermannerpermittedbylaworinanycourtofcompetentjurisdiction.

Shareholderswhoareinanydoubtabouttheirtaxpositionshouldconsulttheirindependentfinancialadviser.

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ANNEXII

OCTOPUSTITANVCTPLC

DIVIDENDREINVESTMENTSCHEMEMANDATEFORM

Ifyouwishtoparticipateinthedividendreinvestmentscheme(the“DRIS”)inrespectofyourholdingofOrdinarySharesinOctopusTitanVCTplc,pleasesignandreturnthisformtoCapitaAsset Services (“Capita” or “the DRIS Scheme Administrator”), The Registry, 34 BeckenhamRoad,Beckenham,KentBR34TUno later than15daysbeforethepaymentofadividendbythe Company. All enquiries concerning this form should bemade to Capita Asset Services,Corporate Actions, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU or bytelephoning+44(0)3716640324.Callsarechargedatthestandardgeographicrateandwillvary by provider. Calls outside the United Kingdom will be charged at the applicableinternationalrate.CapitaAssetServicesareopenbetween9am–5.30pm,MondaytoFridayexcludingpublicholidaysinEnglandandWales.PleasenotethatCapitaAssetServicescannotprovideanyfinancial,legalortaxadviceandcallsmayberecordedandmonitoredforsecurityandtrainingpurposes.

IfyourOrdinarySharesareheldinmorethanoneaccountyoumustcompleteaseparateformfor each account. You may obtain further copies of this form from the DRIS SchemeAdministrator.IfyoudecidetoparticipateintheDRISyouwillbedeemedtohaveagreedthatanymandatewhichyouhavegiven for thepaymentof cashdividendsdirectly to yourBankorBuildingSocietyaccountshallbesuspendedforsolongasyouremainaparticipantintheDRIS.Shareholders in any doubt about the tax position should consult their independentprofessionaladviser.In the case of joint holders all holders must sign. In the case of a corporation/nomineecompanythisformmustbeexecutedunderitscommonsealorbesignedbyadulyauthorisedofficial,whosecapacityshouldbestatedinaccordancewithSection44oftheCompaniesAct2006.IfthisformisnotcompletedtothesatisfactionoftheDRISSchemeAdministratoritwillnotbeprocessedandwillbereturnedtoyouforcompletion.YoucancallOctopuson08003162295whowillbehappytosendyouanApplicationForm,writetorequestacopyfromOctopusInvestmentsLimited,33Holborn,LondonEC1N2HTorvisit the Investor/Document Library section of the Octopus website at:www.octopusinvestments.comYouwillneedtosendyourdividendreinvestmentinstructionstoCapitaatleast15dayspriorto the dividend payment date to be able to participate and reinvest your dividend on thedividendpaymentdate.Youcan revokeadividend reinvestmentelection inOctopusTitanVCTplcbycontacting theDRISSchemeAdministrator.

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To:theDRISSchemeAdministratorandtheCompanyI/We,theundersigned,confirmthatI/wehavereadandunderstoodthetermsandconditionsoftheDRISandthatI/wewishtoparticipateinthatDRISforeachfuturedividendpaidontheOrdinary SharesofOctopus TitanVCTplc indicatedbelowand towhich theDRIS is applied.I/We agree that future dividends paid on Ordinary Shares will be reinvested in OrdinaryShares.TickHeretoreinvestOctopusTitanVCTplc

Shareholder Name(1)

Shareholder Name(2)

Shareholder Name(3)

Shareholder Name(4)

Address:

Allshareholdersnamedabovemustsignhere.Signature(1)

Date

Signature(2)

Date

Signature(3)

Date

Signature(4)

Date

Daytimetelephonenumber

NationalInsurancenumberorInvestorCodenumber(whichcanbefoundonyoursharecertificate)

Emailaddress

88

LISTOFADVISERSTOTHECOMPANYInvestmentManager,AdministratorandReceivingAgents

OctopusInvestmentsLimited33HolbornLondonEC1N2HT

CompanySecretary NicolaBoardACIS

Auditor JamesCowperLLP3WesleyGateQueen’sRoadReadingBerkshireRG14AP

Solicitor HowardKennedyLLP1LondonBridgeLondonSE19BG

Sponsor HowardKennedyCorporateServicesLLP1LondonBridgeLondonSE19BG

TaxAdvisertotheOffer PhilipHare&AssociatesLLPSuiteCFirstFloor4-6StapleInnLondonWC1V7QH

Registrars CapitaAssetServicesTheRegistry34BeckenhamRoadBeckenhamKentBR34TU

VCTTaxAdviser PricewaterhouseCoopersLLP1EmbankmentPlaceLondonWC2N6RH

Octopus Titan VCT plc

0800 316 2295clientrelations@octopusinvestments.comoctopusinvestments.com

Octopus Investments, 33 Holborn,London EC1N 2HT