SIS Ventures kick starts second round funding
Alastair Davis: ‘appetite for the fund’
SIS Ventures is launching a second fundraising round with the aim of attracting up to £3.7m to scale up its support for Scotland’s high impact enterprises.
The Impact First Fund raised an initial £1.3m from 25 UK-based private investors who benefit from Enterprise Investment Scheme (EIS) relief and Social Investment Tax Relief (SITR),
Eight companies of more than 100 applicants have either received support, or are in active discussions.
The announcement of a second round of fundraising follows the appointment of David Ovens, chief operating officer at Archangels and former vice chairman of SIS Ventures, as chairman of SIS Ventures to support the next phase of growth.
Alastair Davis, CEO, SIS Ventures, said: “Demand for investment funding from early stage mission-led entrepreneurs has surpassed all of our expectations.
“Since launching Impact First last year, we have proved without doubt that there is more than sufficient appetite for such a Fund among highly ambitious enterprises with aspirations for growth.
“We also know from our ongoing discussions with the investor community that investor interest is strong.
“However, to date, many have adopted a ‘wait and see’ approach, based on the relative scarcity of evidence to support an impact-first investment approach.
“With our first portfolio of investments almost complete, we are now able to more visibly prove the investment case. We’ve already started our discussions with the investor community, and we’ll be looking to complete the second raise within a few months.”
The firms which received initial funding include:
· Talking Medicines, a Glasgow headquartered data-tech company. SIS Ventures led the seed round of this tech-for-good company in May 2019 with participation from Scottish Investment Bank and Independent Angels.
· EnteroBiotix, an Aberdeen-headquartered life sciences firm which harnesses bacteria from the human gut to prevent and treat infections and diseases. Investment proceeds are enabling the business to achieve key, regulatory, operational and clinical milestones as it continues to develop its product pipeline for the benefit of patients.
· Brewgooder, the Edinburgh craft beer label, on a mission to bring clean water to 1 million people. Investment from Impact First is being used to expand Brewgooder’s market presence and support the next phase of growth.
· Cyan Forensics, an Edinburgh-based Napier University spin-out. Cyan Forensics technology lets law enforcement, social media, and cloud companies detect, block and restrict distribution of harmful digital content to protect vulnerable groups.
· Good-Loop, a programmatic video, social and rich media solution, connecting viewers and brands through ethical, high quality formats while giving 50% of revenues to charities. Investment from Impact First was part of $1.6m (£1.23m) seed-funding round which Good-Loop recently secured.