The government wants new ideas to be financed, high-technology to get started, and innovations to be given a chance. Investment institutions such as venture capitalists will not touch them, so the tax incentives are directed at private investors. These are risky ventures and though rewards can be high for a success, the chance of failure is also pretty high. Even with the tax come-ons this is an area for people with a steady base of safe investment who also have a few hundred thousand to gamble with.
Venture capital trusts
These are really just a collective version of the Enterprise Investment Scheme it replaced. The tax breaks are similar but the investment is into a quoted financial vehicle, which in turn puts the cash into a range of entrepreneurial businesses, so the risk is reduced, as with investment and unit trusts, by spreading the money over a number of ventures.