News
Angels rush in where banks fear to tread
20 Jan 2010
Touch Bionics announces loan from Archangels. Funding of £800K to support accelerated expansion in response to successful launch of ProDigits bionic fingers
Touhc Bionics developer of advanced upper-limb bionic technologies, today announced completion of a loan from members of Archangel Informal Investment Ltd.
Archangels whose members have supported Touch Bionics since its inception, has arranged the £800,000 loan to facilitate expansion in the wake of December's successful worldwide launch of ProDigits, the world's first bionic fingers.
"Touch Bionics, like so many companies, has myriad financial considerations as it grows and brings new products to market," said Stuart Mead, CEO of Touch Bionics. "Many companies in a growth position such as ours are in a challenging spot - expanding into new markets and hiring additional staff in order to meet growing demand requires funding. Yet the banks are hesitant to provide funding because they're still risk averse as a result of the financial crisis. This can hamper progress needlessly - it's time for the banks to step-up and start supporting profitable fast growth companies."
With its range of advanced prosthetic products including LIVINGSKIN, the high-definition cosmesis that closely resembles natural skin; ProDigits, the world's first bionic fingers; and the i-LIMB Hand, a full-hand prosthesis with fully articulating fingers that both looks and acts like a real hand, Touch Bionics is now established as a leading provider of upper-limb technologies that restore both form and function. In order to meet demand for its products, the company is expanding significant operations in both the U.S. and the U.K. to support both business and clinical requirements. Expansion such as this requires loan financing and Touch Bionics' principal investors readily recognise this business reality - demonstrating that private investors understand that fast growth businesses will be a major contributor to economic recovery.
"The Banks would not lend without a three year track record of profits," said Archangels Chief Executive John Waddell. "Touch Bionics is at too early a stage to attract bank funding in the current market but the company is profitable and needs additional funds to continue its fast pace of growth. Archangel members, who are Touch's principal investors, agreed to lend Touch Bionics £800,000. Scottish Enterprise's Scottish Co-investment Fund also participated in the loan, as a co-investor alongside Archangel."
About Touch Bionics
Touch Bionics is a leading developer of advanced upper-limb prosthetics. In late 2009, Touch Bionics brought to market ProDigits, the world's first bionic fingers for partial hand amputees. This revolutionary product followed the 2007 launch of the i-LIMB Hand, a first-to-market prosthetic device with five individually powered digits. The acquisition of LIVINGSKIN the following year enabled the company to apply its commercial and technical expertise into new cosmesis solutions for multi-articulating hands and digits. Touch Bionics continues to develop leading-edge technologies for the treatment of patients with upper-limb deficiencies. For more information, visit https://secure.storeseen.com/websites/archangels/about:www.touchbionics.com.
About Archangel Informal Investment
Archangel Informal Investment is Scotland's leading Business Angel Syndicate. Originally formed in 1992 and based in Edinburgh, the syndicate now comprises around 100 investor members and is investing circa £10m per year in early stage Scottish companies, including leverage from partners the largest being the Scottish Enterprise Co-Investment Fund.
About The Scottish Co-investment Fund
The Scottish Co-investment Fund is a £72 million equity investment fund established by Scottish Enterprise, and partly funded by the European Regional Development Fund, to invest from £100,000 to £1 million in company finance deals of up to £2 million.