The Business Growth Fund (BGF), the UK-based investment fund backed by five of the country’s major banking groups, has signed an agreement with the government-backed Scottish Investment Bank’s Scottish Venture Fund (SVF) to increase funding to Scotland-based businesses.
The partnership is aiming to invest up to £10m ($16m) in Scottish businesses with a secure track record and evidence of a strong growth trajectory.
Founded in 2007, the SVF has since invested £41.8m in 33 companies. The BGF has made two investments since its inception in April but is yet to invest in a Scotland-based business.
Simon Munro, BGF Regional Director for Scotland, said: "Small Scottish companies with annual turnover in the £5 million to £100 million range have in recent years struggled to attract the capital they need to invest and grow and together we can play an important part in filling that funding gap. With a team of five people in Scotland, an office in Edinburgh and further appointments expected in the months ahead, we are actively talking to local businesses about what we can offer and we would urge them to come forward."