An Edinburgh-based syndicate investing in early-stage Scottish life sciences and technology companies has secured a £12 million co-investment.

Archangels signed the deal with British Business Investments via its Regional Angels Programme.

It is hoped it will provide the syndicate with additional capital to fuel the success of Scotland’s next generation of entrepreneurs and innovators.

Archangels will deploy the capital from British Business Investments, a wholly owned commercial subsidiary of the British Business Bank, alongside syndicate funding across all of its investment activity.

Archangels has invested over £160 million in the most innovative early-stage companies since it launched 30 years ago.

In recent years Archangels has enjoyed a number of significant exits, including the sale of medical AI business, Blackford Analysis, to Bayer Pharma earlier in the year and the sale of optical platform business, Optoscribe, to Intel Corporation in 2022.

It regularly invests alongside a range of co-investment partners including Scottish Enterprise, other angel syndicates and VCs. 

Recent investments include participation in a £2.2m funding round to support Edinburgh-based Bioliberty.

David Ovens, joint managing director at Archangels, said: “The co-investment agreement from British Business Investments means that, in a challenging global market, Archangels will have access to significant levels of aligned co-investment capital.

“This additional funding will allow us to support current and future portfolio companies to grow their businesses and provide returns for both our investors and the broader Scottish economy.

“We are in advanced discussions with a number of exciting new companies, and we anticipate seeing these deals coming to fruition over the coming months.”

Judith Hartley, chief executive at British Business Investments, said: “The Regional Angels Programme plays a vital role in developing the early-stage funding ecosystem across the UK Nations and Regions, bringing together finance, business experience and skills to support the development of high-growth smaller businesses.

“By investing alongside Archangels’ syndicate, this £12m co-investment agreement from British Business Investments will support early-stage life sciences and technology companies across Scotland.’’