Exclusive: Octopus Ventures of London Has Announced Layoffs

Octopus Ventures, an investment firm based in London, has recently made the decision to lay off 8 employees, primarily affecting junior investors like associates. These layoffs are part of a strategic shift to refocus the firm’s attention on its portfolio companies rather than seeking out new investments, according to sources familiar with the matter.

In a statement to Business Insider, a spokesperson for Octopus explained that the staff reductions were necessary to align with current market conditions. They emphasized that this decision was not taken lightly, and they expressed gratitude to those affected for their hard work and dedication. The affected employees have been informed of the process and steps taken.

In addition to the layoffs, Malcolm Ferguson, who managed Octopus Titan VCT, has left the fund to join another London firm, ETFS Capital. He has been temporarily replaced by Jo Oliver. The departure comes after the fund’s flagship portfolio faced a significant reduction in value last year due to write-downs in stakes from 80 companies.

Octopus Ventures had undergone a rapid expansion during the COVID-19 pandemic, with a surge in industry activity leading to the recruitment of many new team members. After the recent headcount reduction, the investment team across all Octopus funds now totals 41 people. The challenging industry landscape is expected to pose difficulties for VC funds in retaining staff as they navigate funding challenges and adjust investment strategies.

Octopus Ventures’ portfolio consists of companies like Elliptic, Secret Escapes, ManyPets, and Peak.ai. They have previously invested in successful ventures such as Zoopla and Depop, both of which have exited. Octopus Ventures operates as the venture arm of Octopus Group, which also includes an energy business and a range of VCT funds offering tax benefits to investors.