Investment capital still available for 2009 says business angel syndicate
A survey has revealed a continuing willingness to provide investment capital for Scotland’s entrepreneurs: more than 90% of members of the Borders-based business angel syndicate, TRI Cap, responded that they have funds to invest in the right deals over the coming year.
“The survey indicates the established trend in our members’ investments will continue into 2009,” says TRI Cap chairman Robert Dick, “although the health warnings are clear: in the first place, the deals have to be right and, as TRI Cap matures, a growing proportion of our members’ funds will be committed to subsequent funding rounds for businesses already in our portfolio. In practice our new investments average around £8,000 per individual member, with follow-on investments around £5000. Several of our recent investments have been in partnership with other angel investment groups such as Braveheart and Sigma, and all involve helpful co-investment from the Scottish Enterprise Co-Investment Fund.”
The survey was carried out on behalf of TRI Cap in November by Andy Purves Ltd, which provides secretariat support to the syndicate.
With a number of deals in the pipeline, TRI Cap members have also recently committed funds to specialist IPTV product development company Exterity and Biopta Ltd, the human tissue-based contract research organisation. A further highlight of 2008 was the appointment of Kathy Greenwood as investment manager, a post funded with the assistance of LINC Scotland.
“Since TRI Cap was established in 2005, investments have increased steadily year-on-year,” says Robert Dick, “and are now around £1 million per annum from our members alone. With the provisos indicated, it is fair to say that our members are optimistic about the future. We have always committed ourselves to both funding and support for the businesses we invest in, and many of our members are actively involved in development and management roles with these businesses.
“The current economic climate is, of course, creating a tightening in the financial markets, with debt funding more difficult to come by. This, and the desire of businesses to have a greater cash cushion, will drive many to pursue a stronger equity base.
“From this perspective, the result could be interpreted as a win-win as investors gain a greater stake in strong, entrepreneurial businesses and they, in turn, find an alternative to debt funding.”
TRI Cap members were also asked to indicate preferred sectors for investment, with Energy (73%), Technology (70%) and Traditional (58%) coming through as the most popular. Members continue to be particularly interested in investing in Borders-based businesses.
TRI Cap members have this year supported second round funding for a number of companies including Gas Sensing Solutions, Touch Bionics and Syntropharma.
END
2 JANUARY 2009
Issued on behalf of TRI Cap by Prior PR.
For further information contact Eileen Prior on 01721 729322 or 07802 180 412, or email eileen.prior@priorpr.co.uk