Linc Scotland angel syndicates see investment leap in H1

Members of business angel association Linc Scotland have seen a major year-on-year jump in activity in the first half of 2020.

Linc director David Grahame hailed the 'extremely encouraging' jump in investment in the first half. Picture: Chris James.
Linc director David Grahame hailed the 'extremely encouraging' jump in investment in the first half. Picture: Chris James.

The Glasgow-based organisation said that in the period, the syndicates invested more than £15 million, an increase of 95 per cent from the first half of 2019. The angel syndicates co-invest with the likes of institutional investors and public sector funds (largely those managed by Scottish Investment Bank).

Altogether the syndicates secured more than double their own investment from these sources in the first half of 2020, leading 58 deals amounting to about £41m, up 96 per cent from the same period in 2019. It added that in its financial year to March, the Scottish business angel syndicates participated in deals worth more than £100m.

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The firms supported by the angel syndicates are mainly high-potential tech and life sciences ventures. About 20 per cent of their investment in the first half of 2020 went into new companies, and the sum of £3.13m was a year-on-year jump of more than 80 per cent. Average total deal sizes for new companies also increased, from £573,000 in the first half of 2019 to £819,000 in the same period this year.

Linc director David Grahame said: “It is extremely encouraging to see Linc members increase their investment in the first half of this year compared with 2019, and provide very significant support to the portfolio in highly unusual market circumstances.

"It is particularly pleasing to see an increase in the amount invested in new companies – these early-stage ventures provide the continuity essential to maintain Scotland’s reputation for innovation and entrepreneurship.”

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