SIB shows positive results for 2011/2012

Scottish Enterprise’s Scottish Investment Bank (SIB) has announced a 5% increase in overall investment alongside private sector partners in the past year.

The economic development agency has also seen a 30% increase in the amount of follow-on investment to support growing companies, and supported almost 300 companies with assistance from its financial readiness team.

SIB’s total investment, including deals done through the Scottish Loan Fund, reached almost £30million in 2011/12, which in turn leveraged £62million from the private sector. In all, around £92million was invested in 91 Scottish companies over the year, taking SIB’s total investment since 2003 to just over £159m, which has leveraged a further £354m of private sector investment.

“Given the economic challenges facing the Scottish investment market, this was a very strong year for SIB,” said Kerry Sharp, acting head of the Bank.

“I’m pleased to say that even though the global economic situation remains uncertain, there’s some clear evidence that businesses and investors in Scotland are performing better than expected.

“There are some areas where we could potentially offer additional support, and we’re already looking into them, but the big picture is far more positive than might have been expected, given the difficult times we’re in.”

While the amount of follow-on investment has increased significantly, the demand for seed or start-up funding has dropped by almost half since 2010/2011. Even so, SIB invested almost £1.2m in seed or start-up ventures, and leveraged around £2.9m from the private sector as a result.

For the Scottish Loan Fund (SLF), established by Scottish Enterprise (with Highlands and Islands Enterprise and the European Regional Development Fund) and managed by Maven Capital Partners, 2011/2012 was the first full year of operation and another success story.

“There’s always more to do,” added Kerry. “We are already working on addressing the evolving gaps in the funding markets and the changing access to finance needs of Scottish companies.

“We will continue to grow Scotland’s early stage risk capital market; to encourage and support Scotland’s indigenous investor base and to continue attracting investment from outside Scotland.

“We’re aware of the challenges facing Scotland’s economy and Scotland’s businesses, and our strategy is to providing the access to finance, support and expertise needed to meet those challenges and overcome them.”