THE business angels who provide vital funding for firms with high growth potential look set to be "very much open for business" this year despite the uncertain economic outlook, according to a leading sector authority.
David Grahame, executive director of the LINC Scotland association of business angels, said members will likely be busy in 2012 when official incentives should provide a boost to investment in early stage ventures.
"2012 looks promising and there are clear signs that the market is very much open for business," he told The Herald.
Mr Grahame highlighted two developments that could encourage angels to increase investment in very early stage firms in Scotland, and which will support activity in a key area.
He said the new Seed Enterprise Investment Scheme, which was announced in the Chancellor George Osborne's Autumn statement, will hopefully have a positive impact on the market following its implementation in April.
Mr Grahame noted that the Scottish Investment Bank has increased the maximum it will provide from the Scottish Seed Fund from £100,000 to £250,000 per company this year.
Increased private sector investment in emerging businesses in Scotland should be good news for the country's economy. Development experts want more new businesses to capitalise on the knowledge generated in Scotland's world class universities.
Mr Grahame said: "LINC and its partners intend to make the most of the new incentives to drive real progress in 2012."
LINC's members include the Archangels and Par Equity syndicates.
The comments suggest angels will continue to take up some of the slack that has been left by the decision of leading banks to reduce their exposure to the early stage funding market and by private equity firms focusing on bigger deals.
Mr Grahame claimed LINC members remained more active than most providers in 2011, although activity fell short of the record 2010 level.
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