The syndicate comprises around 100 High Net Worth members who collectively have significant funds available for investment. Since its formation in 1992, syndicate members have invested in excess of £55m into some 60 early stage companies and for the last 3 years have been investing at the rate of around £10m pa.
The strength of the syndicate is also evident in its ability to fund further rounds of investment in its companies when required provided that the business case remains sound.
Low deal costs
Unlike most other investment bodies, Archangels do not charge the company an arrangement fee for the initial investment. We also use low cost standard legal agreements which keep the legal fees payable by the company for completion of an investment to a minimum. There is a modest annual fee to the companies to cover the costs of ongoing monitoring and liaison.
Range of contacts
Our membership and corporate network is extensive, particularly within Scotland but also globally. We have strong connections with Scottish Enterprise, Banks and other investor groups which give us good access to a range of financial assistance. We also have very good connections across a range of commercial and professional companies which can provide young companies introductions to help their businesses. In addition, we encourage interaction between our portfolio companies to share problems and ideas.
The Directors of Archangel Informal Investment are all highly experienced business men who are well versed in the particular needs of young companies. In addition, we have a close network of individuals who will take on the role of non-executive Chairman or Director and add value to specific companies.
Experience of exits
Since 1992, the syndicate has completed a number of successful exits alongside the original founders. The sale or flotation of a company can be a complex transaction which needs to be handled professionally and sensitively and the experience of the Archangel team in this area can be very valuable.
One of our investment philosophies is that we concentrate on building strong companies rather than look for early exits before real value has been achieved. We have no objection to holding investments which can yield satisfactory dividend streams. Although an eventual exit is usually the goal of both founders and investors, we believe that the best exits are achieved by being patient and waiting for the right deal to come along at the right time.