Business angel finance soars to record heights

By DOMINIC JEFF
Published on Monday 13 February 2012 12:15

BUSINESS angel investment in Scotland reached record levels last year, more than making up for a small decline in cash from the public sector.

New figures published today by Linc Scotland reveal that business angels made a record £26.4 million investment into Scottish early-stage companies last year, compared with £24m in 2010 – a 10.2 per cent increase.

The business angels association said its members and other private investors completed 78 transactions into 56 companies in 2011, down from the 105 deals seen in 2010. However, the average size of each deal was £338,462 – 47 per cent higher than the year before.

Total public sector investment, which mostly came from the Scottish Co-investment Fund or the Scottish Seed Fund, was down by 6 per cent to £8.4m.

Linc chief executive David Grahame said: “2011 saw a substantial increase in the size of the investments being made in Scottish businesses, with investors showing faith in early-stage companies. The fourth quarter of 2011 was particularly strong, due to two large deals completed at Braveheart and Alida Capital.”

He said that although 2010 was a record year for the number of investments made, the figure included an unusually large volume of smaller deals, and appears to have been an anomaly within the overall pattern of recent years.

Private sector investment has increased by more than 60 per cent over the past five years.

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Hector the Lessor

Monday, February 13, 2012 at 07:39 AM

Well a good move and obviously a tremendous organisation. Fifty years ago the ordinary bank in the street provided this investment. During a long period of inflation they increased their investment for long term established business. During the 1970s they started to forclose on their bueiness lending. Companies whose asset value was may four or five times their debt were put into liquidation because they could not perform to the requirement of modern banking principles. Well why not, when you are looking at excessive bonuses and money, who wants to look at the detrious left by your decisions.

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