THE Archangels investment syndicate has underlined its belief in the potential for Scottish technology firms to achieve global success, after the value of deals it backed increased by 7% against a tough backdrop.

In the syndicate-led funding rounds, the companies raised a total of £10.2 million from investors last year, compared with £9.5m in 2012.

Archangels added one new company to its portfolio, after supporting a £500,000 fund-raising by Zonefox, which supplies software designed to prevent security breaches from inside a business.

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The syndicate also helped around 12 existing portolio companies raise a total of £9.7m follow-on funding.

Chief executive John Waddell noted members had shown a strong appetite for deals, including later funding rounds that were intended to help investee companies get to a position of scale.

Archangels focuses on Scottish firms that offer technology for which it believes there could be global demand.

Mr Waddell noted the recent $3.2bn (£1.9bn) acquisition of the Nest smart thermostat business by Google highlighted the strong interest businesses with the right technologies could attract.

"We are seeing increasing activity in our early stage technology space and recent trade interest in our portfolio supports our strategy," said Mr Waddell.

Archangels is in talks about a potential exit from its investment in one portolio company. It expects to add a new company to its portfolio in coming weeks.

Syndicate members provided £5.2m of the total invested in 2013.

The Scottish Investment Bank provided £2.5m of the total funding. Mr Waddell said the support provided by the government-funded organisation allowed Archangels to do more than it would otherwise.

Venture Capital firms provided £2m funding last year. Other angels contributed £500,000.

In 2012 Members of Archangels provided £5.73m of the total £9.5m invested.