Angel investment in Scotland sees strong growth over 2011 as number of firms backed rises

Scottish angel investing during the first nine months of the year has jumped by 26 per cent over the same period in 2011.

Early-stage businesses in Scotland received £15.6 million from angel investors in the nine months to 30 September 2012, LINC Scotland reveals.

The figure represents a 26 per cent rise from the £12.4 million recorded in 2011, with the number of companies supported by angel capital also rising by 13 per cent.

LINC Scotland, the national association for business angels in Scotland, says its member can account for £10 million of the £15.6 million allocated. This is up from the £7.4 million contribution made last year.

Some 19 angle groups across Scotland are represented by LINC, a collection which has this year closed 59 investments compared to the 54 completed in 2011.

David Grahame, CEO of LINC Scotland, comments, ‘It would appear that the economic backdrop and challenges faced by companies to secure funding from traditional routes, such as the banks, is creating an opportunity for the angel groups to support up and coming Scottish talent.

‘The results are extremely encouraging; especially the number of new companies that have received angel investment during 2012.’

Further findings from LINC also shows that public sector investment has also risen during the same nine month period versus last year, from £6.12 million to £6.17 million.

The amount of investment raised between both the private and public sectors has increased overall by 18 per cent from £18.49 million to £21.79 million.

Of the largest angel investments to be made in Scotland this year, cleantech business Albagaia secured £500,000 of funding. Of the allocation, £240,000 came from angel group Equity Gap and the Scottish Enterprise’s Scottish Investment Bank.

LINC Scotland describes itself as a private non-profit trust that does not act as an investment adviser to any party. Rather, it plays an underlying ‘soft infrastructure’ role in supporting the development of the business angel marketplace in Scotland.

Hunter Ruthven

Hunter Ruthven

Hunter was the Editor for from 2012 to 2014, before moving on to Caspian Media Ltd to be Editor of Real Business.

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