Par Equity – one of Scotland’s top venture capital outfits – has welcomed a “record-breaking” final three months of 2019, and said it is actively seeking opportunities in the early-stage market.
The firm, which specialises in investing in young, high-growth companies, whose current portfolio includes fashion app Mallzee and personal finance focused Money Dashboard, said that during the final quarter it secured one exit and orchestrated 11 investments.
Par saw London-based managers join it putting money into two of its existing portfolio companies, Current Health and Novosound.
In October, Edinburgh-based battery technology business Dukosi was sold to American private equity investment group KCK for an undisclosed price.
“The deal delivered a return to Par of many multiples of its aggregate investment,” the Scottish venture capital firm said. Dukosi’s technology monitors battery health and performance in transport industries such as electric and hybrid vehicles, helping to address “range anxiety” for drivers.
Additionally, Current Health (formerly Snap40) received £9 million in funding from Legal & General and MMC Ventures to continue the development of its remote healthcare monitoring technology. Patients wear a wireless sensor that measures their clinical indicators, enabling healthcare providers to prioritise those whose needs are most urgent.
In December, it was announced that Novosound, which is behind what is billed as the world’s only fully flexible ultrasound sensor, secured £3.3m from Par and new investor Foresight Group. Novosound produces sensors that allow real-time monitoring of valuable equipment like oil and gas turbines, helping operators schedule maintenance work efficiently.
The other companies for which Par provided follow-on funding have technologies targeting market sectors ranging from the environment to online shopping.
Par also said the record-breaking investment activity it led in the final quarter of 2019 “demonstrates our success in raising funding for companies with exciting technologies based in the north of the UK”.
Par Equity partner Andrew Noble commented: “The record-breaking investment activity we led in the final quarter of 2019 demonstrates our success in raising funding for companies with exciting technologies based in the north of the UK.
“The Dukosi sale and the external investments in Current Health and Novosound show how businesses commercialising British ideas are attractive to buyers and investors, not just in the UK but across the globe.
"Our members personally invest in the portfolio companies and they continue to be very active in seeking opportunities in the early-stage market. This will ensure that we remain ahead of the pack in finding investment companies with global potential at good valuations.”