This article was published in ‘Business Briefing’ magazine, issued by Scott-Moncrieff
As a result of the banking crisis and the downturn in the economy, SMEs in Scotland struggle to secure funding via traditional channels. Recognising the problems businesses are facing, the Government launched the Enterprise Capital Fund Scheme (ECFs), to address the cash flow, credit and capital needs of business. ECFs are venture capital funds aimed at SMEs which demonstrate promising growth.
David Wilson, one of Panoramic’s partners provided a brief overview of the firm: “We have raised £34m to invest in high growth UK SMEs. That has been an immense challenge but the team have succesfully raised their first fund under the Government’s Enterprise Capital Fund scheme, and we had to work very hard to become one of only a few succesful recipients of this source of finance. ECFs are aimed at providing growth capital for smaller firms that would be ‘under the radar’ of private equity houses who seldom invest less than £5 million, thereby helping to address the equity gap.
“Alongside the Government’s financial commitment, we have raised capital from a group of financial institutions and high net worth investors. We plan to build a portfolio of 15 to 20 high growth businesses over the next five years. We will be investing across a range of sectors, with all partners having their own particular niche and my case, being a scientist at heart, I have a natural interest in Healthcare. We all have plenty of general businesses experience and understand what it takes to make a business tick.”