Deals hold up

Angel investment back to level at end of 2019

David Grahame, Linc Scotland

Angel investment in Scotland during the first quarter of 2021 is at the same level as the end of 2019 when there had been a sharp increase.

LINC Scotland, the national angel capital association whose executive director is David Grahame (pictured), said the £9.7 million invested during the first three months of this year was the second highest on record after the 2019 Q4 peak of £10.9m.

Over the past two years the angel syndicates have been increasingly successful in attracting co- investors into their deals, including venture capital (VC) and corporate venturing firms.

The amounts invested by these firms vary widely, but in 2020 alone other private firms co-invested with angels in 66 out of 97 deals, contributing 1.2 times the investment raised by angels.

Much of the investment by business angels is also matched by co-investment from funds managed by Scottish Enterprise, which added 77% of the angel totals to deals in 2020, and 59% in the first quarter of 2021.

These figures fluctuate according to the number and size of deals by angels or syndicates who do not have co-investment agreements with Scottish Enterprise.

Angel investment in Scotland appears to be stronger than in the rest of the UK.

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