Scottish Co-Investment Fund
Are you a Scottish high growth potential start-up, early-stage or growing company seeking investment to develop products and/or markets? We can match fund accredited investment partners to support your growth plans.
Contents
Match funding to meet your needs
The Scottish Co-investment Fund (SCF) is designed to address a finance gap alongside our accredited co-investment partners.
Investment can be made in companies from start-up, early-stage to expanding businesses seeking to develop products and/or markets.
How we can help
Through this fund, we can:
- Match accredited co-investment partners up to a maximum of 50% of the total funding package on a commercial basis
- Typically provide from £100,000 up to £2 million, as part of a total deal size typically ranging from £200,000 up to £10 million
This is an equity fund (we subscribe for shares) with deals brought forward to us by our partners. We invest on equal terms with the investment partner.
Enquiries for Scottish Co-Investment Fund support should be made through an accredited co-investment partner.
Ask our financial readiness advisers for help to prepare your investment proposition
Am I eligible?
To be considered for investment from the Scottish Co-investment Fund your company must:
- Be a commercially viable high-growth potential business
- Have, or be in the process of developing, a significant operational presence in Scotland which is proportionate to the levels of investment being sought
- Fall within the UK Companies Act 2006 definition of a Small to Medium Enterprise (SME)
Find the definition of SME on GOV.UKopens in a new window
- Have a net zero plan in place, be developing a net zero plan or be committed to developing a net zero plan. Scottish Enterprise’s sustainability team can support companies in building a net zero strategy.
Read our 10 steps to achieving net zero emissions in your business
Be demonstrating or working towards the seven key principles of fair work (employee voice, security, respect, opportunity, fulfilment, flexible and family working, and the rejection of fire and rehire practices). Scottish Enterprise can work with you to review and develop working practices.
Take a look at our guide to building business resilience
Restrictions
The fund is not sector-specific but companies operating in certain sectors may be ineligible for investment.
This includes companies operating in the defence sector or providing goods, services or activities in well-served markets, for example:
- Banking, insurance, sub-prime lending or other activity where there is onward lending or credit risk including hire purchase and dealing in land, derivatives or commodities
- Retail, events, restaurants, hotels, pubs, and clubs
- Social and personal services
- Professional services
- Motor vehicles
- Real estate and property development
Companies operating in these areas with disruptive business models, or technology companies which innovate or create new markets or market engagement, may be considered.
We will not invest in a company involved in any activity that could have a negative impact on our organisation's reputation or ethical standards. Such activities include, but are not restricted to, the following:
- Activities with an adverse impact on human rights or the environment
- Gambling
- Tobacco
- Adult entertainment
- Weapons and ammunition
What's involved?
You’ll need to secure funding from an accredited co-investment partner before we can look at co-investing into your company.
The partner will carry out diligence and bring the investment proposition to us detailing deal size, timing and deal structure.
Once investment is completed, our portfolio management team will work alongside your management team and the accredited co-investment partner to maximise the outcomes of the investment for the company, for Scottish Enterprise, and the Scottish economy. Other forms of Scottish Enterprise support such as account management, specialist support (such as from our sustainability team) and access to Scottish Enterprise’s networks in the early stage ecosystem may also be considered on an ongoing basis to help shape the business strategy more broadly.
Search accredited partners we work with
Aero-Den is a US syndicate looking for developing technology preferably at the second stage of the investment cycle.
| Investment level | From $100,000 to $1million |
| Contact | Douglas Cribbes |
| douglascribbes@hotmail.com opens in a new window | |
| Stage | Start-up/early |
| Other criteria | Aero-Den deals will generally be in Europe, USA and Canada and will be focused in developing technologies. |
| Company background | An angel investment group, Aero-Den are interested in developing technologies that the group feel they can financially support and guide the product to market. |
An investment syndicate based in Aberdeen. It makes investments into businesses with high growth potential.
| Investment level | Typically £75,000 to £500,000 in any one round. Alba Equity are happy to lead investments and to co-invest with other groups. |
| Contact | John Duncan |
| john@albaequity.comopens in a new window | |
| Website | Alba Equity websiteopens in a new window |
| Stage | Primarily start-ups, seed investments and early-stage companies but will also consider opportunities with more mature companies. |
| Other criteria | In addition to investment, Alba Equity aims to add value to and support its investee companies through its membership and network. |
| Company background | Alba Equity was formed in 2019 and aims to support companies with exceptional management teams and propositions to achieve their growth aspirations and potential. |
Archangel Investors focus on start-up and early-stage businesses from all sectors, with the exception of property, retail and leisure.
| Investment level | £50,000 - £2 million. Scotland only - central belt preferred. Must have high growth potential and global application. |
| Contact | David Ovens |
| investment@archangelsonline.comopens in a new window | |
| Website | Archangels Investors websiteopens in a new window |
| Stage | Start-up/early |
| Company background |
Scotland’s oldest business angel syndicate, Archangel Investors was originally formed in 1992. Based in Edinburgh, the syndicate now comprises around 120 investor members and is investing around £10 million per year in early-stage Scottish companies. |
Invests in the technology sector.
| Investment level | Up to £500,000 |
| Contact | Jim Reid |
| Chimaerabio@hotmail.com opens in a new window | |
| Stage | Start-up/early |
| Company background | The ChimaeraBio Investment Partnership was formed in August 2000 by Jim and Karen Reid. ChimaeraBio partners have a vast range of experience in the Biosciences business, market development, and international marketing. Due to their extensive connections and previous work with companies worldwide such as Roche, Chiron and Organon, ChimaeraBio has developed the skills, knowledge and level of investment needed in order to optimise the growth of any business. ChimaeraBio will provide a flexible and proactive approach to funding, the focus being to nurture your business enabling optimal growth. The group successfully exited from Qnostics in 2006 and Haptogen in 2007. |
A syndicate used to co-investing alongside others, also an experienced lead investor. Discovery are interested in early-stage to existing revenue generating companies across all sectors.
| Investment level | £75,000 - £300,000 |
| Contact | Julie Findlay |
| julie.findlay@discoveryinvestmentfund.co.ukopens in a new window | |
| Website | Discovery Investment Fund websiteopens in a new window |
| Stage | Early-stage to existing revenue-generating companies |
| Company background |
Founded in 2006, Discovery Investment Fund is a privately funded venture capital business with widespread investment interests and a board with a diverse knowledge in many sectors. Its aim is to offer expertise and connections to add value, develop and nurture new and growing businesses all over Scotland, ensuring that all invested money is ‘smart money’. |
Eos is looking for businesses with ambitious founders, unique and protectable products or services, global market potential and clearly identifiable exit opportunities.
| Investment level | First cheques between £1 million and £5 million. Capacity to support companies through to Series B with follow-on capital ranging from £5 million |
| Contact | Andrew McNeill and Calum Keddie |
| opens in a new windowandrew@eos-advisory.com and calum@eos-advisory.com | |
| Website | Eos websiteopens in a new window |
| Stage | Early-stage investment into science and technology companies, with follow-on investments made up to and including Series B. |
| Company background | Eos is a Scotland-based, early-stage investor with a focus on improving lives through the commercialisation of science and technology. Eos invests at local, seed stage - into business that have a positive impact on healthcare and diagnostics, environmental sustainability, climate change and industrial innovation. Eos actively supports the companies within its portfolio through strategic advice, commercial guidance, and co-investor partnerships, in order to create long-term value and global impact. Eos place strong emphasis on diversity and inclusion in all its investment practices. |
A leading international venture capital firm, Epidarex Capital lead investments in early-stage life science and health technology companies.
Epidarex invest in all areas of health science including biotechnology, medical devices and pharmaceuticals, personalized medicine and diagnostics – in addition to healthcare IT and services.
They target transformative opportunities launched in under-ventured regions of the UK, where there are strong research institutions and a developing ecosystem of talent and capital.
| Investment level | Epidarex leads or co-leads investments in company funding rounds totalling up to £10 million, syndicating with other funds. |
| Contact | Sinclair Dunlop |
| info@epidarex.comopens in a new window | |
| Website | Epidarex Capital websiteopens in a new window |
| Stage | Start-up/early stage or SMEs seeking their first institutional funding round, and place a particular emphasis upon innovations ‘spun out’ of universities. |
| Company background |
The fund’s early stage focus is supported by diverse investors, including Pharmaceutical company Eli Lilly, four top research Universities, the European Investment Fund, Scottish Enterprise and Strathclyde Pension fund. Epidarex’s close working relationship with leading research universities provides access to some of the most innovative healthcare start-ups, including those specialising in novel drug development. |
Equity Gap invests in all sectors – excluding property and retail – with a preference for businesses based in Scotland.
| Investment level | Equity Gap typically invests a minimum of £100,000 and maximum of £500,000 at initial or seed investment stage. If other angel investors or syndicates have already been secured, the syndicate is happy to co-invest and may be more flexible on the maximum sum. |
| Contact | Enquiries team |
| enquiries@equitygap.co.ukopens in a new window | |
| Website | Equity Gap Early Stage Investment websiteopens in a new window |
| Stage | Immediately pre-and post-revenue |
| Company background | A group of private individuals, Equity Gap were set up to invest in and support emerging and growing businesses. |
Mainly involved in high-tech projects looking for investment at the pre-start, start up and proof of concept stages, the syndicate will look at non-tech companies but these must have a distinct and demonstrable USP.
| Investment level | Generally investment will be in the area of £60,000 - £120,000 for early stage companies. Will look at co-investing with other Scottish Investment Bank partners. Can act as lead investor or work with other syndicates as part of a larger deal. |
| Contact | Alex Lusty |
| a.lusty@gabriel-is.comopens in a new window | |
| Website | Gabriel Investment Syndicate websiteopens in a new window |
| Stage | Pre-start, start-up and proof of concept |
| Company background |
An angel syndicate and business incubator, Gabriel Investments invests in pre-start and start-up businesses. The concept behind Gabriel is to take young businesses with an idea, business model or product in its early stages and inject funds to help take it to market. Typically investing in businesses that demonstrate growth potential, ambition and scalability – Gabriel also offers ancillary services. These include physical space, business planning, financial projections, marketing strategy, administrative and secretarial support. By the end of the six to nine month incubation process, the business will be ready for market. |
High Venture Capital invest at any stage of a company’s development from start-up and early investment, to being part of a syndicate of syndicates to support later-stage investment.
| Investment level | Deal range: £75,000 - £500,000. Scotland only - Highlands and Islands preferred. |
| Contact | Iain Scott |
| Telephone | 01463 712588 |
| iain@highvc.co.ukopens in a new window | |
| Website | Highland Venture Capital websiteopens in a new window |
| Stage | Start-up/early |
| Company background |
Formed in 2006, Highland Venture Capital comprises seven successful businessmen from a wide range of backgrounds. Currently, the Syndicate currently comprises around 40 investor members but is actively seeking to increase its membership. HVC is happy to invest alone, and/or to co-invest alongside others, both in the first round and/or subsequent rounds of funding. HVC offers a flexible and proactive funding option, focused on supporting your business to grow. |
IP Group are interested in biotech, cleantech, healthcare and technology.
| Investment level | TBA |
| Contact | Contact head office +44 (0) 20 7444 0050 |
| enquiries@ipgroupplc.comopens in a new window | |
| Website | IP Group websiteopens in a new window |
| Stage | Early stage to mature |
| Company background |
IP Group is a leading intellectual property commercialisation company which focuses on evolving great ideas, mainly from its partner universities, into world-changing businesses. The Group has pioneered a unique approach to developing these ideas and the resulting businesses by providing access to business building expertise, capital, networks, recruitment and business support. IP Group has a strong track record of success and its portfolio comprises holdings in over 90 early-stage to mature businesses across four main sectors - biotech, cleantech, healthcare and technology. |
London & Scottish Investment Partners is a syndicate used to co-investing alongside others, also experienced lead investor.
| Investment level | Up to £1 million |
| Sector | All sectors considered |
| Contact | Annie Simpson |
| annie@lsip.co.ukopens in a new window | |
| Website | London and Scottish Investment Partners websiteopens in a new window |
| Stage | No start-ups, ideally companies trading for 2-3 years, solvent and with existing revenue with exit potential with 3-4 years. |
| Other criteria |
MBOs welcomed. Family companies looking for succession, or to realise some of their wealth. Companies with external investors. Companies looking to move to next level, realise entrepreneurial wealth, looking for additional funding, looking for management support and/or enlivenment, companies seeking management/ founder change. |
| Company background |
Established in 2014, London & Scottish Investment Partners are a Scottish-based angel group supported by investors from London and Scotland. Their aim is to add expertise, experience and money alongside hands-on management support and fresh strategic business plan – creating growth and value accelerator for SMEs, taking them to the next level. |
Maven work to identify and help support entrepreneurial drive in businesses.
Maven do not invest in pre-revenue – but are open to investing in companies in the following sectors:
- Chemicals and materials
- Communications
- Construction and building products
- Electronics, energy and engineering
- Financial services
- Industrial automation, industrial products and services
- Information technology hardware and internet technology
- Leisure and entertainment
- Manufacturing
- Media and photography
- Medical/health related
- Other consumer related
- Retail
- Services
- Software and computer services
- Transportation industries
| Investment level | Up to £10 million |
| Contact | Martin McLaren |
| martin.mclaren@mavencp.comopens in a new window | |
| Website | Maven Capital websiteopens in a new window |
| Stage | Does not invest in pre-revenue |
| Company background |
Operating from 12 regional offices, Maven Capital provides equity finance for established entrepreneurial SME businesses, where the enterprise value is between £5 million and £25 million. The investment is usually to support an MBO, acquisition, expansion or a buy-and-build strategy, typically providing equity finance of £1 million to £10 million. Invest only in businesses where management teams demonstrate a drive to succeed. |
Mercia is a proactive specialist asset manager focused on helping regional businesses to achieve growth through venture, debt and private equity. They provide regional fast-growth small-to-midsized enterprises (SMEs) with capital to help them scale and flexible funding to meet their immediate needs. Mercia also provides the insight, experience and commitment needed to ensure that everyone invested in this journey grows together.
| Investment level | £100,000 to £10 million |
| Contact | Henley-in-Arden office (main office) |
| enquiries@mercia.co.ukopens in a new window | |
| Website | Mercia Asset Management websiteopens in a new window |
| Stage | Seed through to Series B |
| Other criteria | Tax reliefs with Mercia EIS Funds and Northern VCTs. |
| Company background |
Learn more about Mercia's backgroundopens in a new window on the company website. |
Par Equity combine Par EIS Fund capital with investment from a large base of Par Syndicate professional investors.
| Investment level | Their typical deal size is £500,000 plus, preferably as lead investor – and they are happy to consider syndicated investments and have previously co-invested with both local and international investors to close deals of up to £5 million. |
| Sector | Venture capital across a broad spectrum of technology (excluding biotech). Management should be focused on delivering a capital return to investors within a three to eight year time horizon. |
| Contact | Robert Higginson |
| robert.higginson@parequity.comopens in a new window | |
| Website | Par Equity websiteopens in a new window |
| Stage | Immediately pre-and post-revenue |
| Other criteria | Par Equity is particularly interested in businesses where its Advisory Panel can add value. |
| Company background | An Edinburgh-based venture capital firm with a distinctive investment proposition, Par Equity bring both financial and intellectual capital to bear to identify and support innovative companies with high-growth potential and global ambitions. |
TRICAPITAL Angels supports innovative, high growth Scottish companies with international
aspiration capable of delivering significant gross value added (GVA) to Scotland’s economy.
| Investment level | TRICAPITAL invests in the range of £250k - £2 million, with a 'sweet spot' of £500k. |
| Contact | Kathy Kinder |
| kathy.kinder@tricapital.co.ukopens in a new window | |
| Website | TRICAPITAL Angels Limited websiteopens in a new window |
| Stage | Seed through to Series A |
| Other criteria | TRICAPITAL's international network brings expertise as well as investment to its portfolio companies, enabling it to accelerate success collaboratively. |
| Company background |
TRICAPITAL is a business angel syndicate with over 70 international members, all of which are successful C-suite entrepreneurs and industry specialists. Operating since 2004, TriCapital currently manages a portfolio of 30+ investments spanning technology, energy, life sciences and engineering.. Itinvests widely with other partners, as well as alongside Scottish Enterprise with which they have a long-standing and fruitful relationship. |
Kelvin Capital looks to deploy ambitious business capital into companies with global ambitions. Can source and syndicate with other investors.
| Investment level | Typical deal size is £0.5 million to £2 million. Can source and syndicate with other investors, bringing deals of over £10 million together. It prefers to lead deals, bringing the most value to the business that way. |
| Sector | A generalist investor looking to its network of members and contacts to help diligence opportunities. |
| Contact | Susie Fisher or Lynn Hall |
| theteam@kelvincapital.comopens in a new window | |
| Website | |
| Stage | Seed to Series A - likes to invest once companies have proved they have customers willing to buy products/services. |
| Other Criteria | Team is the key to its investment decisions. From its network, Kelvin Capital look to bring in exceptional NXDs who can turbocharge the business. Most recently, Justin King, ex CEO Sainsburys, joined one of its portfolio companies, Snappy Shopper and Derek Mathieson, ex CMO of Baker Hughes, joined Novosound and Logan Energy. |
| Company background | Based across Scotland, it looks to deploy ambitious business capital into companies with global ambitions, using its deep network of contacts. |
Contact our team to find out more
We're on hand to answer your questions and explain the support we can offer to help your business succeed.