Equity Gap’s Fraser Lusty shares his insight into the Scottish angel investment landscape as we recover from COVID-19 lockdown
The COVID-19 pandemic has been wreaking havoc since March creating uncertainly for businesses across the world.
Despite the challenges the pandemic has caused, many angel groups are reporting that they haven’t seen a dip in investment. Edinburgh-based Equity Gap, who have invested £3.8m since the beginning of March 2020, are one of the angel groups that have been able to push forward during these difficult times.
Last week Equity Gap’s Investment Director Fraser Lusty joined us for our regular Friday Focus to talk us through how the investment landscape looks in Scotland as we recover from the COVID-19 lockdown.
Discussing their how their portfolio businesses have survived over the last few months, Fraser commented:
“A number of our businesses, in addition to getting direct equity funding from ourselves, have been able to take advantage of the Bounce Back Loan scheme from the banks, and that’s been a real success. It’s important that we point out that there’s been real positive aspects for companies that have been able to take funding that’s enabled them to either trade out or focus on what’s going to happen in the future.”
Talking about the investment landscape in Scotland, Fraser shared:
“We’ve done 22 rounds of funding up until July this year. 18 have been since the beginning of March through to now. That suggests our investors are continuing to back portfolio companies and provide follow-on funding, both as a safeguard but also to provide the necessary underlying cash runway that will see them through to next year when the landscape may change again.”
During the Friday Focus session, Fraser also discussed how Equity Gap have adapted the way they work during the pandemic and what the future investment landscape may look like.
Watch the full Friday Focus video below: