THE funding provided by members of Archangels hit a record high last year underlining the contribution the investment syndicate makes to the entrepreneurial economy in Scotland.

Syndicate members invested a total of £8.3 million last year, 11 per cent up on the previous record of £7.5m set in 2015.

Archangels arranged a total of £14.6m support for companies with high growth potential in 2016 against £13.9m in the preceding year.

The syndicate published an annual update on its activity ahead of an event tonight which will highlight the role Archangels has played in supporting the development of promising young companies in Scotland in its 25 year existence.

Founded by entrepreneurs Barry Sealey and Mike Rutterford in 1992, Archangels has helped to secure around £222m funding in total for 82 companies in fields such as software development and biotechnology.

Syndicate members have now invested a total of £103.5m in the 25 years the organization has been active.

The scale of Archangels’ activity reflects its success in encouraging partners to invest more than £100m alongside members over the years. The Scottish Investment Bank has provided £33.4m.

The successful sale of the Touch Bionics in Livingston to Icelandic prosthetic limb specialist, Össur last year provided further evidence of Archangels’ ability to spot winners. It helped allow the syndicate to return £31m to members, up from £16m in 2015.

Archangels added two new investee companies to its portfolio in 2016, in the form of optical communications specialist Optoscribe and PhysioMedics, which has developed an online back pain management tool. It completed 12 funding rounds, with the bulk of activity involving existing portfolio firms, against 18 in 2015.

Chairman Eric Young said: “The four pillars on which Archangels was founded: to put something back; support young Scottish companies; make an investment return; and have fun; have stood the test of time well.”

He added: “In the next 25 years, we will continue to build on what we have achieved so far, to support and nurture future generations of entrepreneurs to generate value for the Scottish economy and our investors, and to create high quality jobs and improve lives.”

Academics at the University of Strathclyde business school found companies backed by Archangels have generated an estimated £1.39bn in turnover and created more than 3,500 jobs since 1992.

The syndicate has more than 85 members.