Scotland Sets the Bar for Angel Investment

Scotland Sets the Bar for Angel Investment

There are approximately 20 angel investment groups in Scotland. They vary in size and operational method, and are widely distributed geographically from the Scottish boarders to the Highlands. Some are effectively private, consisting typically of close friends, business associates or family members, but most are open to new members through an application and approval system.

In all cases membership is controlled to ensure that the collegiate spirit of each group is maintained. Groups vary in size from just a handful to over 100 individual members.

Each group has its own internal procedures and operating methods and membership rules and also differ in the areas of industry interest they have (though this tends to be expressed by excluding certain sectors rather than specifying which sectors they will consider investing in) and by the amount investors within the groups are comfortable investing personally in each investment.

The typical round of investment is about £250,000, with individual members contributing from £10,000 to £30,000, to some as smaller and some substantially larger.

Scottish groups tend to work together, by forming syndicates of groups, particularly in follow on rounds of funding, and as a result there is a good working relationship between the groups across the country. Some individuals are members of more than one group.

LINC Scotland is the national association for business angels in Scotland, with a membership network of hundreds of investors including those operating individually, many of the best known groups and syndicates, and a number of significant private offices.

LINC itself is private sector non-profit and does not act as investment adviser to any party but rather plays an underlying 'soft infrastructure' role in supporting the development of the business angel marketplace in Scotland, as well as representing members' interests at Scottish, UK and International level.

GlobalScot is represented across the Scottish investment landscape with members who are part of the exisiting syndicates, work for and with LINC Scotland, individual investors and in a position to give general advice on fund-raising.