The Scottish Investment Bank (SIB) works with private sector investors from around the world to help our companies grow.
Our private investors include business angels, angel syndicates, venture capital groups and corporate investors. Our links with the Business Angel network is strengthened by our links with LINC Scotland, which is Scotland’s world leading angel network.
We have funding options that can match private sector investors with small to medium businesses to help them reach their growth potential. Becoming an accredited investment partner enables you to:
Download all the information you need to apply, as well as the application form.
SCF III Partner Application Pack (PDF, 1.2MB)
- Identify investment opportunities
- Undertake appropriate due diligence
- Negotiate the terms of the deal
- Invest your own funds into companies
- Bring the deal to Scottish Enterprise if there's a funding gap
We run two co-investment funds that address gaps in the early stage risk capital market - the Scottish Co-Investment Fund (SCF) and the Scottish Venture Fund. Through these funds, we work alongside private sector investors to help small to medium businesses reach their growth potential. We invest on fully commercial terms with the same investor rights and protections as our private sector investors.
Becoming a SCF investment partner
We're currently looking for applications from a wide range of investors who'd like to be considered for accredited partnership status of the Scottish Co-investment Fund.
This fund was the first public sector equity co-investment fund, which was established in 2003. It combines private sector investor and public sector funding to make equity investments in high growth businesses in Scotland. The fund is backed the European Regional Development Fund, and to March 2017 it invested £129m into Scotland’s fastest growing companies alongside £250m from private sector investors.
How do the funds operate?
With the Scottish Co-investment Fund SIB can co-invest into start-up, early stage and expanding businesses alongside accredited partners. The accredited partner would source, carry out diligence and negotiate the deal to invest into companies. If there's a funding gap, the accredited partner can call upon SIB to co-invest alongside it on commercial and equal terms. As part of this fund, SIB can invest between £10,000 and £1.5 million in deal sizes between £20,000 and £10 million.
The Scottish Venture Fund operates by co-investing into start-up, early stage and expanding businesses alongside a range of private sector investors. It's private sector investor-led and SIB might be involved in negotiating the terms of the investment and undertaking any required appropriate diligence. The investment decision is ultimately retained and made by Scottish Enterprise (SE). SIB can invest between £10,000 and £2 million in deal sizes of £20,000 and typically up to £10 million.
What type of investors are we looking for?
We want to invest alongside experienced private sector investors with a strong track record in creating value through investment into early stage, high growth through to expanding companies. With new investors, we will usually complete a number of SVF deals together before thinking about giving you SCF-accredited status. This allows both parties to get to know each other before going through the SCF partner accreditation process.
What type of companies do we invest in?
We'll invest alongside private sector investors into early stage and expanding companies with high growth potential that will deliver economic impact to Scotland. We aim to work with our private sector investors to help our portfolio companies achieve their ambitions through realising their export potential and drive innovation. Our aim is also to guide their access to appropriate finance and create highly-skilled employment from their growing Scottish base.
Can I invest alongside SIB if I’m not an accredited investment partner?
You won't be able to invest in companies through the Scottish Co-investment Fund but SIB will still be able to co-invest with you through the Scottish Venture Fund.
What are the eligibility criteria for companies to be considered for the Scottish Co-Investment Fund?
To be eligible for investment from the Scottish Co-Investment Fund, your companiy must:
- Be a commercially-viable business
- Deliver economic impact to Scotland proportionate to the levels of investment being sought
- Fall within the EU definition of a Small to Medium Enterprise (SME)
- Have secured an offer of funding from an accredited partner
What are the eligibility criteria for companies to be considered for the Scottish Venture Fund?
To be eligible for investment from the Scottish Venture Fund, your company must:
- Be a commercially-viable business
- Have, or be in the process of developing a significant operational presence in Scotland, which is proportionate to the levels of investment you are looking for
- Demonstrate the economic benefits to Scotland that could result from the investment
- Demonstrate which other funding sources you have explored
- Fall within the EU definition of a SME
What are the investor requirements?
You can find more information on the investor requirements in the legal documentation for both funds on pages 6-9 of the SCF III Partner Application Pack.
We also pay a contribution to deal costs in the form of a fee to accredited partners based on a percentage of SE funds invested. More information about fees is available on page 12 of the SCF III Partner Application Pack.
Download the SCF III Partner Application Pack (PDF, 1.2MB)
For more information or to see one of our sample agreements, contact us.
Get in touch with SIB to get a sample investor's agreement