Growth firms benefit from record angel investment
David Grahame: angel community shows tremendous energy
Scottish growth firms enjoyed record funding from business angels last year.
New figures show members of the LINC business angel association concluded 103 investment deals with 82 companies.
These delivered £66.35m of private investment, together with £19.82m of public sector finance, mostly from the Scottish Investment Bank. This compares with £50.79m of private investment in 73 companies in 2018.
Investment was overwhelmingly focused on technology companies.
Membership of the association includes most of the country’s well known business angel groups.
At the same time international recognition of the ‘Scottish Model’ for developing business angel ecosystems continues to grow and outreach work included contracts with bodies such as the World Bank, the European Commission, the German Agency for International Development, the Netherlands Ministry of Foreign Affairs and the Swiss Foundation for Technical Co-operation.
Commenting on the annual results, LINC Scotland chief executive David Grahame said: “Equity investment by business angels remains crucial to the financing of many of Scotland’s most promising companies, particularly in the early high-risk stages when conventional finance is simply not available.
“These firms are the high-quality job providers of the future and it is great to see the Scottish business angel community showing tremendous energy and confidence at a time of such economic and political uncertainty.
“It’s also remarkable that international educational and development activities reached over forty countries from China to Europe, the Middle East and the Americas and we hope to continue to grow these networks of mutual benefit.”