About £75million-worth of funding will be made available to Scottish companies with high growth prospects over the next three years, it was announced yesterday.
The cash injection will come from the Scottish Investment Bank (SIB), which has halved the number of co-investment funds it manages and loosened its criteria to make it easier for businesses and investors to take advantage.
SIB, which is the investment arm of Scotland’s main economic development agency, Scottish Enterprise, now runs two “enhanced” co-investment funds which are open to a wide range of businesses, such as life sciences and food and drink.
The Scottish Co-Investment Fund (SCF) can dish out grants from £10,000 to £1.5million, while the Scottish Venture Fund (SVF) can deliver payments of between £10,000 and £2million.
Private sector organisations that want to co-invest in businesses alongside the SCF must have SIB accreditation. The SVF is open to a wider range of backers, however, as accreditation is not a requirement.
SIB head Kerry Sharp, said: “We’ve been monitoring the market and listening to our investors, and the message was clear that companies increasingly need funding to be more flexible than ever before.
“That’s why we’ve widened the investment parameters and simplified the criteria to benefit both the private sector investors we work with and the companies we invest in.
“This greater flexibility to invest across a broader range of businesses will enable us to support more companies to reach their full potential, which in turn helps the Scottish economy to grow.”
SIB funding has helped get the new whisky and gin distillery on Harris off to a good start, according to director Ron MacEachran.
Tarbert-based Isle of Harris Distillers recently finished building a maturation warehouse and has set a date of September 24 for the official opening of its distillery. It will be open to the public at a later date.
Mr MacEachran said: “Our project has benefited from the interest Scottish Investment Bank showed from the start of the fundraising process.
“Individual investors had increased confidence as a result, enabling us to leverage £5.65million in private sector investment.
“SIB also helped us align the economic and commercial impact objectives of the project’s equity investors and grant funders.
“It further helped us identify professionals with the relevant knowledge and expertise needed at critical points in the project.
“It’s been decades since this level of investment has come to the Isle of Harris and we are looking forward to the next chapter in this exciting opportunity.”