Braveheart helps export angel fund model to England

Published on Wednesday 13 April 2011 23:04

Braveheart, the investment group that backs business start-ups, is taking a leading role in an English version of the successful Scottish Co-investment Fund.

The Perth-based firm is one of five private sector businesses that advised the UK government on setting up the 50 million Business Angel Co-investment Fund (CoFund).

Yesterday chief executive Geoffrey Thomson announced Braveheart's intention to participate in the fund and said the model would be based on the one used in Scotland since 2003.

He said: "This has worked extremely well in Scotland, where it was a major shot in the arm for business angels, so it's great to see the Scottish model being replicated south of the Border.

"We were the only organisation of the five that's from Scotland so we had quite a lot of input to give."

Thomson said the five private investors had asked the Treasury for 100m for the CoFund but were only given half that. He added that if it proved successful, more money was likely to be poured in, perhaps on an annual basis.

The nature of the new fund also means that the government's 50m should lead to greater investment by the private sector.

Precise details are still being agreed, but the CoFund will work by matching investments already agreed by private firms. Private sector cash can be matched pound for pound, but often the fund will be used to plug a smaller shortfall in the capital needed by a fledgling business.

Thomson said: "Whilst at 50m this new fund is relatively modest in size, I expect it will have a strongly positive impact on the English market."

He said Aim-quoted Braveheart's London office was raising about 2m a month and would make use of the CoFund as it invested the money.

"It should be a great benefit to us," he said.