Date Created: 26 October 2011
The Scottish Investment Bank's (SIB) Scottish Venture Fund has joined forces with the UK's Business Growth Fund to boost the equity funding available to ambitious Scottish businesses.
The new partnership will create investment opportunities of up to £10 million, available for Scottish companies with a strong track record and clear plans for future growth.
The Scottish Venture Fund was establised in 2007 to support Scotland's small and medium enterprises by particpating in risk capital funding based on a co-investment approach.
The fund has now invested over £41 million in 33 companies contributing to a total combined public and private sector investment of £140.7 million.
The Business Growth Fund was launched this year to help the UK's fast growing smaller and medium sized businesses. It provides equity in return for a minority stake and two seats on the company's board. The Business Growth Fund is already established in Edinburgh and across key regions in the UK.
Gerard Kelly, head of the Scottish Investment Bank, said:
"Scotland continues to produce exciting innovative companies with global potential and by partnering with the Business Growth Fund, we hope to boost access to risk capital for Scotland’s most promising enterprises.
"Our co-investment approach has proved to be a catalyst for increased equity finance in Scotland, even at a time when investors are being cautious. The opportunity to co-invest alongside the Business Growth Fund, a new and substantial participant to our market, is very welcome and will help address a gap in the funding cycle that existing funds are unable to satisfy."
Simon Munro, Business Growth Fund's Regional Director for Scotland, added:
"Small Scottish companies with annual turnover in the £5 million to £100 million range have in recent years struggled to attract the capital they need to invest and grow and together we can play an important part in filling that funding gap.
"With a team of five people in Scotland, an office in Edinburgh and further appointments expected in the months ahead, we are actively talking to local businesses about what we can offer and we would urge them to come forward."
Take a closer look at the Scottish Venture Fund with Scottish Enterprise