Scotland’s business angel syndicates smash pre-pandemic high with 2021 investment

Scotland’s business angel syndicates ended last year on a high, investing almost double the figure for 2020 and smashing their pre-pandemic high.

Before the coronavirus crisis struck, 2019 had been a high point in the angel investment market north of the Border, with a record number of deals and a record £86 million invested.

The market slowed in 2020 as investors made a priority of supporting investee businesses, but has now rebounded, according to the latest statistics.

In 2021, deals led by angel syndicate members of Linc Scotland secured in total £146m of funding for young companies with high growth potential, almost double the amount raised in 2020, and 70 per cent higher than the record set in 2019.

In 2021, deals led by angel syndicate members of Linc Scotland secured in total £146 million of funding for young companies with high growth potential, almost double the amount raised in 2020. Picture: Jon Savage

Several of the member syndicates reported their busiest year to date. Archangels made 11 investments, totalling £23.7m, an increase of 44 per cent over 2020, while Par Equity more than doubled its investment.

The Linc Scotland membership includes 21 syndicates, with contributions averaging £470,000, 80 per cent higher than in 2019.

Mark Sterritt, UK network director, Scotland at the British Business Bank, said: “There is a huge amount of momentum in Scotland’s angel investment market - that the volume of investment almost doubled on 2020 and is up around 70 per cent on 2019’s record reflects the strength and depth of the sector.

“Angel investment has historically been concentrated in London and the south east of England, but the sector is growing in importance in Scotland and has been very beneficial in supporting some of the country’s key sectors.”

A message from the Editor:

Thank you for reading this article. We’re more reliant on your support than ever as the shift in consumer habits brought about by coronavirus impacts our advertisers. If you haven’t already, please consider supporting our trusted, fact-checked journalism by taking out a digital subscription: www.scotsman.com/subscriptions