- Octopus Ventures is laying off 8 investment staff, sources told Business Insider.
- The layoffs mostly affect junior investors, per the sources. The firm hired aggressively during COVID-19.
- Octopus Ventures' portfolio includes companies like Secret Escapes and ManyPets.
Octopus Ventures, a London-based investment firm, has laid off 8 employees, sources have told Business Insider.
The layoffs predominantly affect junior investors such as associates, five sources familiar with the matter told BI. They are part of the fund's drive to refocus its attention on portfolio companies rather than new investments, two London-based sources said.
"Regarding the redundancies, we have made the difficult decision to adjust our team to align with current market conditions," a spokesperson for Octopus told BI. "As a result, we expect to reduce head count by 8 roles and have begun communicating this process with affected colleagues. This was not a decision we took lightly, and we would like to thank everyone involved for their hard work and dedication."
Separate from the layoffs, Malcolm Ferguson, who led Octopus Titan VCT, has left the fund to join London firm ETFS Capital. The spokesperson said he has been replaced by Jo Oliver on an interim basis. That move came after the firm's flagship fund wrote down its stakes in 80 companies as part of a £132 million ($167 million) reduction in its portfolio value last year.
Octopus aggressively hired during COVID-19, bringing in many new team members during a massive spike in industry activity. Following the headcount reduction, the investment team across all Octopus funds totals 41 people.
VC funds are expected to struggle to retain staff amid a trickier industry prognosis as funds either struggle to raise or slow down their investments.
Octopus Ventures' portfolio includes Elliptic, Secret Escapes, ManyPets, and Peak.ai. The fund has also previously invested in now-exited businesses such as housing site Zoopla and fashion reseller Depop.
Octopus Ventures serves as the venture arm of Octopus Group. This wider group encompasses an energy business and a variety of VCT funds, which are listed investment trusts that provide certain tax benefits.