The Scottish Co-investment Fund (SCF) is a £72 million equity investment fund that invests from £10,000 to £1.5m in company finance deals of £20,000 to £10m.
Unlike a standard venture capital (VC) fund or a business angel, the SCF does not find and negotiate investment deals on its own. Instead it forms contractual partnerships with active VC fund managers, business angels and business angel syndicates from the private sector (the SCF partner).
The SCF partner finds the opportunity, negotiates the terms of the deal and offers to invest its own equity cash. If the opportunity needs more money than the partner can provide, it can call on the SCF to co-invest on equal terms. The SCF partner determines how much the SCF can invest in any new deal, however, the SCF cannot invest more than the SCF partner.
SCF is managed by the Scottish Investment Bank (SIB) and is partly funded by the European Regional Development Fund (ERDF).