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Equity Gap leverages record investment into portfolio

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Jock Millican and Fraser Lusty: ‘good investor growth’

Equity Gap, the Edinburgh based business angel syndicate, helped leverage a record investment into its portfolio companies last year.

The syndicate delivered 23 funding rounds and added five companies to its portfolio during 2019.

Equity Gap invested £3.6m, taking the total portfolio value since it was founded in 2010 to £16.2m. Factoring in the involvement of partners and other stakeholders, this activity leveraged a record total investment into the portfolio of £21.5m for the year.

The organisation has leveraged a total of £71m into its portfolio companies since it was founded in 2010. This success has seen the company expand its operations, ahead of marking its 10th anniversary later this year, with a move to new city centre premises and the appointment of four specialist roles.

New seed investments include compliance software firm Amiqus Resolution, smart security solution Boundary and aviation medical emergency technology provider MIME Technologies.  

Four follow-on rounds were transacted at more than £1m including those for fintech lender LendingCrowd, and remote sensoring technology company Synaptec.

Equity Gap is one of several Scottish angel investment groups which have delivered strong performance in 2019, despite market uncertainty.

Jock Millican, director of Equity Gap and chairman of the LINC Scotland angel capital association, said: “Investing £3.6m during 2019 came on the back of a record year in 2018.

“Our successful co-investment partnerships with other business angel syndicates and support from the Scottish Investment Bank, continue to evidence a positive funding environment, and the availability of capital for scale-up opportunities across a wide range of sectors in Scotland.

“Most of these companies simply would not get funding without the support of the business angel community. The funds raised have given our portfolio companies the ability to grow, create quality employment opportunities, especially for graduates, and build prosperity across the wider Scottish economy.

“Even those companies that complete a successful exit, tend to maintain their operations here.”

Fraser Lusty, Equity Gap director, added: “It is important to us to continually to look at ways in which we can more effectively interact with and attract a more diverse investor base.

“We have been fortunate to see good organic investor growth from a variety of new geographies, including Germany, USA and Australia.

“Equally, it is key for the syndicate to help our portfolio companies grow smoothly and look to bring forward the right exit deals and this in turn, has invigorated our desire to build stronger cross-border relationships with venture capital and M&A specialists.”



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