SIB has record year
Scottish Investment Bank announces record year
SIB announces record year, supporting more companies than ever before in 2017/18.
The Scottish Investment Bank, Scottish Enterprise’s investment arm, has announced a record year in 2017/18, supporting over 640 companies, 500 of which was through its Financial Readiness Service and 147 through its investment activities, investing £43.5m and leveraging over £206m of external investment.
Key results include:
Leverage: through its main equity funds, SIB invested £30.7m, helping companies unlock £166m of private sector investment – reflecting the growing strength of investment opportunities in Scotland and the positive impact of Scottish larger deals attracting institutional investment nationally and internationally. The Renewable Energy Investment Fund (REIF) invested £10.2m securing £34.5m in external investment and SIB invested £2.6m into externally managed funds which leveraged £5.5m of private sector investment.
Income: SIB’s activities generated income of £17.6m across all activities.
International activity: over 35 international VCs and corporate investors backed SIB investee companies, helping to secure more than £105m of investment from outside Scotland.
Investor support: supporting companies identify and secure an appropriate funding package from a range of sources, SIB’s Financial Readiness Specialists worked intensively with over 500 companies as well as developing a range of events, digital content and promotional material to reach a broader cohort of companies.
Investee companies also supported over 3400 full-time jobs in Scotland with SIB’s portfolio of achieving a combined annual turnover exceeding £400m, £275m of which was generated from international sales.
Commenting on SIB’s annual results, Kerry Sharp, director of the Scottish Investment Bank, said: “The 2017/18 Annual Review demonstrates the continued important role of the Scottish Investment Bank in Scotland’s early-stage risk capital market, supporting more companies than ever before to secure growth funding and unlocking a growing number of companies raising larger levels of investment. Increasing the availability of, and access to, national and international investment capital continues to be a strong feature of our efforts having invested in over 140 companies; as does delivering a range of support and guidance to over 500 companies through our Financial Readiness Service.
The levels of investment we are witnessing in Scotland – with the underlying market showing a doubling of investment in new and earlier stage deals over five years ago – is testament to the strength of the entrepreneurial and internationally diverse investment eco-systems and the highly innovative companies at various stages of development that are flourishing here in Scotland.”
SIB’s focus remains providing access to financing advice, support and networks for Scottish companies to help deliver their growth ambitions. SIB’s Financial Readiness team worked with over 500 companies in the year, helping companies prepare and refine their funding proposals and business plans, identify the most appropriate source(s) of finance and supporting their access to appropriate finance. The service was augmented last year to reach a greater number of companies through delivery of events, new online guides and short videos which cover a wide range of subjects linked to fund raising activities, while also working with companies on a one-to-one basis to provide specialist funding advice.
To further support companies with the increasing range of investment options open to them, in 2017/18 SIB also secured specialist corporate finance advice to help prepare investment ‘teasers’ as well as training for companies making that all important pitch to new investors.
During 2017-18, SIB continued its efforts to establish and build new relationships with international investors. Of the £206m of external investment leveraged from our activities, over £105m of this was from international sources, a key focus in driving additional capacity and access for investors to high growth Scottish companies.
To support more companies in attracting greater quantums and later stage investment capital, SIB launched the £200m pilot Scottish-European Growth Co-Investment Programme – an innovative, first of its kind partnership with the European Investment Fund (EIF). With commitments of £50m from each of Scottish Enterprise (via Scottish Government’s Scottish Growth Scheme) and the EIF to leverage £100m plus from EIF accredited investment funds from across Europe, the Programme helps bring new international capital into Scotland to support our most ambitious growth companies looking to continue their growth journey and scale internationally.
Since launching the Programme, the focus has been in building market awareness, building an investor-ready pipeline of opportunities as well as engaging and establishing relationships with appropriate fund managers.
During the last year, SIB also supported a number of clean energy projects, through £10.2m of investment via the Renewable Energy Investment Fund (REIF) into 9 community and marine energy projects. SIB now delivers the successor fund to REIF for Scottish Government – the Energy Investment Fund. This Fund will build on the success of REIF, providing flexible commercial investment for energy projects that will play a key role in Scotland’s transition to a low carbon economy.