Angel investment and LINC Scotland

Martin Aitken & Co is a corporate partner of LINC Scotland, the Scottish Angel Capital Association. LINC Scotland

LINC Scotland is the national association for business angels in Scotland, with a membership which includes many active individual investors and most of the main angel groups or syndicates.

At a practical level part of LINC Scotland's role is to support and improve the functioning of the local business angel market.  At individual deal level, LINC Scotland focus on improving the efficiency of the process by making targeted introductions to well matched business angels amongst its members.  

Find out more about Martin Aitken & Co >more

What's Martin Aitken & Co's role?MACO BUILDING BLOCKS

We act for investors, high net worth individuals and corporate bodies, and companies receiving investment. The corporate advisory team led by Ewen Dyer and Euan Ferries provide advice at all stages of the investment process, including:

  • Providing an initial sounding board for companies seeking angel investment and investors looking to invest.
  • Getting the company investor ready e.g. preparing the business plan, financial projections over the investment period (and often beyond), preparing the pitch for funding >more
  • Sourcing and securing angel investment.
  • Deal structuring to ensure that investment structure fits both the objectives of the investor(s) and the company. 
  • Tax impacts of the investment on both the individual investors and the companies receiving investment.
  • Maximising the available tax reliefs e.g. Enterprise Investment Scheme and Seed Enterprise Investment Scheme >more
  • Constructing a cocktail of investment funding - via angel invesment, asset backed debt e.g. bank loans, HP, alternative sources e.g. grants, mezzanine, crowdfuning >more
  • Full range of corporate finance, accounting and tax compliance advice and financial planning services via Martin Aitken Financial Services.

How does Angel investment work?

Angel investors provide funding (development capital) to your business in return for an equity stake in the company. Many businesses that receive angel investment will already be trading and generating revenue and they are seeking additional investment to take the enterprise to the next level.

This could be for expanding the business to grow market share, developing new products or service lines to meet an identified need which is not currently being met and/or expanding into new markets both at home and overseas.

Angel investors also tend to provide more than just financial support. Trees growth

As many angel investors are seasoned entrepreneurs themselves, many will have been on a similar journey to the business they are investing in and will be keen to lend their knowledge and experience to assist the business to acheive the growth they are seeking.

They of course have a vested interested and they will be highly motivated to see the business succeed. 

Angel investors, like venture capitalists, like to be as certain as they can about the return they will make on their investment.

They want to be able to see, with evidence provided by the company and its management team, how the investment will be used, when it will be used, the key results the business expect during the investment period, and when they will be achieved, and what the likely returns are at each phase of growth.

The percentage equity stake required by the angel investors will vary depending on the size of invetsment the company is seeking. The equity stake requested by the angel investor, or more commonly a group or syndicate of angel investors, could be anywhere from 10% to 50%.

TPL 2020 21Granting an equity stake in the business to external investors in return for development capital is not for everyone.

However, it is important to give consideration to this way of funding, for instance, as part of a potential cocktail of funding or as an alternative to debt, to generate the investment your business requires to take it to the next level.

For more information

Get in touch with Euan Ferries, Corporate Advisory Manager for an initial conversation regarding angel finance.

Find out more about angel investment and LINC Scotland and the recent deals they have funded >more


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