£75m funding to be made available to Scottish businesses
Scottish Investment Bank has relaunched its co-investment funds and will now participate in rounds ranging from £10,000 to £2m
£75m equity funding is to be made available to Scottish businesses over the next three years, following news that the Scottish Investment Bank(SIB)-the enterprise arm of Scottish Enterprise-has relaunched its co-investment funds.
The relaunch, intended to increase flexibility and access to funding for Scottish entrepreneurs, will see the funds “streamlined” to include only the Scottish Co-Investment Fund (SCF) and the Scottish Venture Fund (SVF).
Both funds have increased their lending amounts and the SCF will now invest between £10,000 to £1.5m while the SVF will invest up to £2m in deal sizes of up to £10m.
The SCF is led by private sector investors with investment made alongside Accredited Partners who are vetted by the SIB, the SVF on the other hand does not require an accredited partner but is still led by private investors.
A survey by the British Venture Capital Association (BVCA) highlighted the recent surge in equity investments with UK private equity and VC funds having made almost double the returns of pension fund assets over the last 10 years.
Head of the Scottish Investment Bank, Kerry Sharp, commented: “We’ve been monitoring the market and listening to our investors, and the message was clear that companies increasingly need funding to be more flexible than ever before.That’s why we’ve widened the investment parameters and simplified the criteria to benefit both the private sector investors we work with and the companies we invest in.
“This greater flexibility to invest across a broader range of businesses will enable us to support more companies to reach their full potential, which in turn helps the Scottish economy to grow.”