Saturday 2nd February 2008
Bank of Scotland Corporate's Growth Equityteam and Oxford Investment Opportunity Network (OION) have launched a Co-Investment Programme that will provide a new source of funding for innovative companies. OION selects and introduces high growth, innovative technology companies from across the UK to its network of business angels and corporate investors in order to help them raise equity funding, and is one of the most highly regarded investment networks in Europe.
The Bank of Scotland's Growth Equity team typically makes equity investments of between £1M and £7M across a range of sectors. These investments are made directly from the Bank’s balance sheet, not from a fund, which gives the Bank more flexibility.
Under the terms of the Co-Investment Programme the Bank has made available £2 million to invest during 2008 alongside investor members of OION, and its sister investment networks, Thames Valley Investment Network and Oxford Early Investments. The Bank will typically invest from £25,000 to £250,000 per deal, with all investments being made on exactly the same terms as OION’s investor members.
This innovative arrangement provides the Bank with an outstanding opportunity to invest in high growth companies and to establish relationships with high net worth investors. Most importantly, it further enhances Bank of Scotland Corporate's reputation as the bank for entrepreneurs.
The Co-Investment Programme was formally launched at an OION investment meeting held yesterday in Oxford, which attracted over 70 investors and guests and also featured pitches from companies seeking funding.
Commenting on the deal, Malcolm Kpedekpo, Associate Director of Bank of Scotland Growth Equity, said:
"This exciting deal opens doors for Bank of Scotland Corporate. We now have access to entirely new networks of investors, as well as being able to fund high growth companies. In a country which is built on entrepreneurship, we're determined to play our part in helping the entrepreneurs of today and tomorrow to realise their ambitions and to create jobs and growth."
Don McLaverty, Director of Oxford Investment Opportunity Network, said:
"We are delighted that Bank of Scotland Corporate has entered into this innovative arrangement with OION. It speaks volumes for the success of our OION Network that an institution like the Bank is eager to be so deeply involved. We have an extremely solid Network of over 100 active angels who have a superb track record of investment, and our co-investment model with the Bank, which enables it to act as a ‘super angel investor’ alongside our angels, can only be good news for the innovative companies from across the UK who raise funds through OION."
Notes for editors
About Oxford Investment Opportunity Network
Oxford Investment Opportunity Network (OION) is an investment network that focuses on innovative technology companies from across the UK with high growth potential. OION aims to match companies seeking business development funds with business angels and corporate investors, and secures investment rounds from £150,000 to £2m for between 10 and 15 companies each year.
OION was established in 1994 as one of the UK's first business angel networks. Today, it ranks among the most successful and well regarded technology business angel networks in Europe. For investors, the network offers access to a rich source of investment opportunities in early stage ventures across the UK. For companies, the Network provides active investors who can add value to growing businesses.
OION has an excellent track record of success. In the 1990s, Oxford Asymmetry – a pharmaceutical spin-out from Oxford University – was funded through the Network, floated on the London Stock Exchange, and by the time it merged with Evotec Biosystems in 2000 it was worth more than £300m and employed several hundred people. Similarly, nanotechnology business, Oxonica, raised funding from the Network and now has a market capitalisation of over £50m.
OION has two successful sister networks. Thames Valley Investment Network links investors in the Reading area with companies in the retail and media sectors while Oxford Early Investments helps very stage companies raise proof of concept funding from £20,000 to £150,000.
OION is managed by Oxford Innovation Ltd (www.oxin.co.uk), the UK’s leading operator of Innovation Centre premises for growing companies, and sponsored by Laytons, Frank B Dehn & Co, NESTA and Bank of Scotland Corporate. For further information: www.oion.co.uk
About Bank of Scotland’s Growth Equity team
Bank of Scotland’s Growth Equity team makes direct equity investments into a variety of businesses across a range of sectors. It makes investments directly from the Bank's balance sheet, not from a fund. It therefore has the flexibility to work with management teams to facilitate an exit at the right time for the business itself.
Since 2001 the team has made over 40 investments worth some £200 million. Recent investments include: Red Spider Technology, Cel-F Solar, Rocela Group, Pi Capital, Leaseway and Artimi Inc
It looks for the following criteria in potential investee companies:
