Angels’ cloud nine after a record year

Business angel syndicates in Scotland finished 2021 on a high, having led investments worth more than double the amount raised by such deals in 2020.

Last year’s total transaction figure smashed the previous record set in 2019 by 70%.

Deals led by angel syndicate members of national association LINC Scotland secured funding worth £146 million for young firms with high growth potential.

Before the pandemic struck, 2019 had been a high point in the angel investment market in Scotland, with an alltime high number of deals and a record £86m of funding raised.

LINC Scotland said the market slowed in 2020 as investors made a priority of supporting investee companies but had since rebounded.

Several syndicates reported last year was their busiest to date.

Archangels made 11 investments, totalling £23.7m, an increase of 44% over 2020.

Par Equity more than doubled its investment, deploying £25m, up from £12m in the previous year, with six new investments and follow-on finance for 21 companies.

This took the firm past the £100m benchmark of capital invested since it started in 2008.

Equity Gap has reached a £25m investment milestone after its most successful year to date, leveraging additional funding of more than £100m for investee companies since its launch.

According to LINC Scotland, these investments have helped create more than 500 high quality jobs around Scotland, worth about £20m each year to the national economy.

LINC Scotland’s membership includes 21 syndicates, which together invested 50% more in 2021 than in 2019, with contributions averaging £470,000, 80% higher than in 2019.

David Grahame, executive director for the association, said syndicates were “very successful” in bringing external co-investors into their deals, adding more value.

These included corporate and institutional investors, venture capital firms and other angel groups, he added.

POTENTIAL: LINC Scotland angel syndicates secured £146m for young firms.