Scottish Enterprise has reported that 2021/22 continued to be a record year for its early-stage investment activities.
The enterprise agency, which has been investing in such businesses since 2003, recorded investment of £50.71m into 102 new opportunities, leveraging a further £257m from private investors, which resulted in over £307m of growth finance.
Alongside local, national and international private investors, 2021/22 was the strongest year yet for attracting international co-investment - more than half of which came from global venture capital firms and corporate investors.
2021/22’s exit opportunities increased as businesses grew under new ownership, generating an additional £106m.
Scottish Enterprise, while prioritising access to finance for early-stage companies, also provides advice and funding to identify investors under its Financial Readiness Service, through which 269 companies raised external finance last year.
Adrian Gillespie, chief executive at Scottish Enterprise, said: “Last year was an exceptional year for our early-stage investment activities.
“Not only did we see a healthy number of deals, but our maturing portfolio of investee companies saw strong exit opportunities allowing us to generate significant re-investment income.”
Notable investments during the year included:
- Aberdeen-based subsea technology company Verlume, which raised £2.5m through Edinburgh-based venture capital firm Par Equity and Orchard Venture Capital.
- Talking Medicines, a Glasgow-based patient intelligence firm, which raised £1.5m via Thairm Bio Tern and SIS Ventures with assistance from Scottish Enterprise’s SMART: SCOTLAND programme.
- In4Derm, a spin-out from the University of Dundee’s School of Life Sciences, which raised £1.6m through Scottish Enterprise’s Scottish Venture Fund and o2h Ventures.
- Edinburgh-based home security start-up Boundary, which raised £3.7m through Equity Gap, Skyscanner’s Gareth Williams and co-founders Robin Knox, Paul Walton.
- University of Edinburgh spin out Kynos Therapeutics, which raised £9m from Epidarex, the IP Group and Scottish Enterprise.
Notable exits realised during the year included:
- Current Health, a co-investment with Par Equity, which was acquired by US-based Best Buy for $400m.
- Strathclyde University spin out Smarter Grid Solutions, a co-investment with Scottish Equity Partners, which was acquired by Mitsubishi Electric Corporation.
- Spoonfed, with its investment from Equity Gap, was acquired by 365.
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