Edinburgh-based investment syndicate Archangels ups investment in 2023

Scottish angel investment group boosts backing of key life science and tech sectors.

The team at Archangels, which invested more than £13.8m in 2023 across 11 Scottish early-stage tech and life science firms. Picture: contributed.

A Scottish investment specialist billed as the world’s longest continually operating angel syndicate says it is confident of “another busy year of investment” after upping such activity in 2023 despite a “difficult” backdrop.

Edinburgh-based investment syndicate Archangels, which comprises a 12-strong board and executive team and around 120 members, has revealed that it this year injected more than £13.8 million into 11 early-stage life sciences and tech firms north of the Border, up slightly from £13.4m in 2022. The latest total encompasses two new investments, namely Bioliberty, which secured £2.2m to fund the development of its soft robotic glove that can help stroke victims, and, more recently, 1nhaler that netted about the same amount to develop its unique dry powder inhaler device and gain global traction. Other portfolio businesses to receive follow-on funding included Cytomos, Calcivis, Administrate, and BioCaptiva.

Co-investors on deals totalling £21.7m during 2023 included Scottish Enterprise, Par Equity, Mercia and various Scottish angel syndicates – as well as the British Business Bank, whose British Business Investments (BBI) division via its Regional Angels Programme inked a £12m co-investment agreement with Archangels, boosting its firepower, which was announced in August. The Edinburgh-based syndicate also in 2023 secured an exit with the acquisition of medical artificial intelligence company Blackford Analysis by German life science company Bayer.

David Ovens, joint managing director at Archangels, which was founded in 1992 and currently has 20 companies in its portfolio, said: “We started 2023 knowing that we faced a difficult macro-economic and geopolitical environment, and that proved to be the case. However, despite those challenges, Archangels has remained consistent and steadfast in our support for some of Scotland’s most exciting tech and life sciences companies.

"The exit we achieved through the sale of Blackford, our two new investments, and our deal with BBI were all significant success stories for our investors. While the outlook for 2024 remains relatively unchanged from this year, we can look forward with confidence to another busy year of investment in Scotland’s buoyant tech and life science sectors.”