Aberdeen-based angel investment syndicate Alba Equity is celebrating a £2 million-plus milestone in only its third year.
That is how much the firm has invested in companies to date, with the total reached in its recent seven-figure cash injection into local food packing business Leap Automation.
Leap joined a portfolio of investee firms which already included GM Flow Services, Cumulus Oncology, Trojan Energy, PneumoWave, Sentinel Subsea and Carcinotech.
Job creation
Alba said it had leveraged a further £40m of investment through its co-investment partnership with Scottish Enterprise, along with other sources of private equity and venture capital.
This has, in turn, has helped to create about 100 high-paid Scottish-based jobs, the syndicate added.
We set up Alba Equity to support exciting and innovative early-stage businesses seeking investment.”
Jock Gardiner, co-founder, Alba Equity.
Alba was formed in 2019 by seasoned finance professionals Jock Gardiner and John Duncan.
Mr Gardiner said: “Despite the challenges of the pandemic and economic turmoil in the last three years, we’ve now invested in eight Scottish companies, with five of these securing one or more follow-on round of investment to accelerate their growth.
“During this time, we’ve reviewed over 300 proposals and, typically, have around five qualified opportunities at various stages, at any one time, in our pipeline.
“While we primarily work with start-up and early-stage companies, we will also consider more mature businesses which require funding to develop new products or markets.”
Alba typically invests between £100,000 and £500,000 in Scottish businesses with high growth potential.
As well as providing capital, it brings the experience, expertise and connections of its members to support the growth of companies.
Investee companies must have a “compelling product or service”, and “own the IP (intellectual property) or patents required to deliver, have a significant target market and well-defined route to access these markets”.
We are delighted to have led a £2.25m investment into Altair Medical, another innovative Scottish company seeking to make a global impact. https://t.co/jUAxBp3RKR
— Alba Equity (@albaequity1) April 19, 2021
Mr Gardiner, who was part of Aberdeen Asset Managements’s private equity team before going on to co-found Maven Capital Partners, added: “We’re looking for companies which meet all our criteria.
“We spend time understanding the opportunity and, importantly, getting to know the management team before asking them to present to our members.
‘Strong relationships’
“It’s important that we build strong relationships and it is our strong belief that the overall quality, experience and commitment of the management team is one of the key attributes likely to bring success in early-stage companies.”
Alba’s first five investee companies have all raised further capital at increased valuations since the initial investment.
“We set up Alba Equity to support exciting and innovative early-stage businesses seeking investment,” Mr Gardiner said.
Funding market ‘gap’
He added: “There was a gap in the availability of funding of this type in the north-east of Scotland, which we are helping to close.
“Leveraging our contacts and knowledge, we work with the management teams to identify and add appropriate expertise to a business through the appointment of non-executive directors to support with complimentary experience.
“It’s pleasing to see that a number of our investee companies have women chief executives or chairs.”
Alba said its investment team now comprised more than 60 members, primarily successful north-east businessmen and women who were looking to create a diversified investment portfolio.
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