The deal is set to empower the Edinburgh-based syndicate, which specialises in early-stage Scottish life sciences and technology firms, with additional capital, thereby fostering the growth of Scotland’s forthcoming wave of entrepreneurs and innovators.

In operation for more than three decades, Archangels has shown unwavering dedication to its long-term role in maximising investor returns and fostering successful businesses, and has so far invested over £160m in disruptive early-stage firms exhibiting innovative technology, protectable intellectual property, and the potential to expand on a global scale.

Its success is evident in the considerable exits it has secured recently, such as the sale of medical AI enterprise, Blackford Analysis, to Bayer Pharma, and the sale of Optoscribe, an optical platform business, to Intel Corporation in 2022.

The fresh capital from British Business Investments, the British Business Bank’s wholly-owned commercial subsidiary, will be utilised across all of Archangels’ investment activities in conjunction with syndicate funding. It regularly co-invests with a variety of partners, including Scottish Enterprise, other angel syndicates, and venture capitalists. Its most recent investment includes contributing to a £2.2m funding round to back Edinburgh-based Bioliberty.

David Ovens, joint managing director at Archangels, said: “The co-investment agreement from British Business Investments means that, in a challenging global market, Archangels will have access to significant levels of aligned co-investment capital.

“This additional funding will allow us to support current and future portfolio companies to grow their businesses and provide returns for both our investors and the broader Scottish economy.

“We are in advanced discussions with a number of exciting new companies, and we anticipate seeing these deals coming to fruition over the coming months.”

Judith Hartley, CEO at British Business Investments, said: “The Regional Angels Programme plays a vital role in developing the early-stage funding ecosystem across the UK Nations and Regions, bringing together finance, business experience and skills to support the development of high-growth smaller businesses.

“By investing alongside Archangels’ syndicate, this £12m co-investment agreement from British Business Investments will support early-stage life sciences and technology companies across Scotland.”