Record year for business angel syndicate

THE funding provided by members of Archangels hit a record high last year underlining the contribution the investment syndicate makes to the entrepreneurial economy in Scotland.

Syndicate members invested a total of £8.3 million last year, 11 per cent up on the previous record of £7.5m set in 2015.

Archangels arranged a total of £14.6m support for companies with high growth potential in 2016 against £13.9m in the preceding year.

The syndicate published an annual update on its activity ahead of an event tonight that will highlight the role Archangels has played in supporting the development of promising young companies in Scotland in its 25-year existence.

Founded by entrepreneurs Barry Sealey and Mike Rutterford in 1992, Archangels has helped to secure £222m funding in total for 82 firms in fields such as software development and biotechnology.

Syndicate members have invested a total of £103.5m in the 25 years it has been active.

The scale of Archangels’ activity reflects its success in encouraging partners to invest more than £100m alongside members. The Scottish Investment Bank has provided £33.4m.

The successful sale of the Touch Bionics in Livingston to Icelandic prosthetic limb specialist, Ossur last year helped allow the syndicate to return £31m to members, up from £16m in 2015.

Archangels added two new investee companies to its portfolio in 2016, in the form of optical communications specialist Optoscribe and PhysioMedics, which has developed an online back pain management tool. It completed 12 funding rounds, with the bulk of activity involving existing portfolio firms, against 18 in 2015.

Chairman Eric Young said: “The four pillars on which Archangels was founded: to put something back; support young Scottish companies; make an investment return; and have fun; have stood the test of time well.”