Waddell notes competition from other funders
Archangels reports strong returns as investment model proves its value
Archangels, which has been at the forefront of early stage investing for more than two decades, will give an update to 160 entrepreneurs and angel investors from across Scotland at an event this evening.
They will hear from Archangels’ chief executive, John Waddell, that it arranged funding of £12.2 million for 14 companies, comprising £7.5m of investment from investors, with a further £3.5m of co-investment from Scottish Enterprise and £1.2m from other partners. The biggest single investment was £2.5m in Scottish bionic prosthetic producer, Touch Bionics, in May.
Syndicate members also invested £100,000 in Cytomos, a company whose progress the group has been following for the past two years. Edinburgh-based Cytomos has technology that uses electronics to analyse cells. The company is at a very early stage and Archangels’ investors agreed to support the company because of its strong prospects, underlining their appetite for investing in early stage, higher risk ventures.
Returns from disposals and dividends amounted to £17.3m, with £11.2m going to Archangels members. This included the successful sale during the year of the electricity supply business, Flexitricity, to Swiss energy company, Alpiq, for an undisclosed sum.
Speaking ahead of tonight’s event, Mr Waddell said: “This was one of Archangels’ strongest years and, against a background of crowd funders and other early stage investors entering the market, I am delighted to be able to report that the traditional investment model, pioneered by Archangels, is going from strength to strength.
“We will continue to actively manage our portfolio of investments, exploring ways that we can enhance value for our investors and invested companies through further investment, sourcing partners and creating exit opportunities.”
“There is a misconception that Archangels only invests in relatively developed companies and this isn’t true. Our investment of £100,000 in Cytomos reminds me of Archangels’ initial investment of £25,000 in Optos all those years ago to fund proof of concept.
“The Optos story is, of course, well-known and I look forward to seeing the current investments by Archangels’ members develop to the stage where they can either float or result in a trade sale.”