Investors seek more data

Centre to study economic impact of Archangels’ investment

OptosA business angel group has appointed one of Scotland’s top schools for entrepreneurs to carry out a study into the benefits it brings to the economy.

Archangel Investors, created 23 years ago, has asked the Hunter Centre for Entrepreneurship at Strathclyde Business School to research the impact of its investment, mentoring and management support activities.

The Centre’s Dr Niall MacKenzie and Margaret Coughtrie will examine job creation, revenue generation, sales revenues, profitability, and overall gross value added.  Their findings are expected to be published in the summer.

Archangels was established by entrepreneurs Mike Rutterford and Barry Sealey in 1992 following their successful investment in what was to become Optos (pictured) on its flotation in 2006.  Optos recently agreed to be acquired by Japanese group, Nikon, for £259 million.

The business model is built on investors pooling their resources to support Scottish businesses mainly in the technology and life sciences sectors. It has supported 80 companies – many with multiple rounds of investment funding.  Archangels now has more than 70 investor members.

David Ovens, chief operating officer at Archangels, said: “We know how much has been invested over the last 23 years and how much has been returned to investors, but that’s only part of the story.

“To truly understand the impact that Archangels has had, we need to dig deeper. How many jobs have been created? How much profit has been generated? How successful have our invested companies been?  What have they contributed to the Scottish economy? These are the real measures of success and we’re keen to know the answers.”

Dr MacKenzie said: “Early stage investment is of fundamental importance to helping companies grow and realise their potential.

“To this end Archangels have played a critical role in developing some of Scotland’s brightest companies and entrepreneurial culture and the Hunter Centre are delighted to engage with them on such an important subject.

“We have developed an innovative framework of analysis which captures both the investment process and its impacts. We are looking forward to using this to assess the impact Archangels have had, and will no doubt continue to have in the future, on Scottish companies and beyond.”


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