START-UPS most of them fail. “Institutional investors find it difficult to justify spending time on start-ups or early-stage companies compared to established businesses with revenue and profit history.” After a couple of years in the doldrums, many experts are looking forward to a better period, although that is tinged with a degree of caution. David Cockburn, head of corporate finance for Grant Thornton in Scotland, believes there are some investors that are willing to support early stage businesses. “One would hope this year to see more start-up activity,” he says. “There will be people that come out of the recession wanting to do something else, either forced or because they are fed up. In Scotland, it is typically going to be some areas of technology and biotechnology.” One successful start-up was that of MGB Biopharma, spun out of Strathclyde University to commercialise antibacterial technology. The company has received start-up funding of almost £2m from an angel syndicate led by Archangel Informal Investments in association with TRI Cap, Barwell and the Scottish Co-investment Fund. The spin-out has an experienced team from both the pharma and biotech sectors and its aim is to develop and
Start-ups Lawyers 1. MBM Commercial 2. CMS Cameron McKenna 3. Semple Fraser 4. McGrigors 5. Biggart Baillie
Deals 2 2 1 1 1
Value c. £3.1m >£1m £350m £143.3m £11.5m
Accountants 1= Anderson Anderson & Brown 1= Hall Morrice 3. Ernst & Young 4. Robertson Craig 5. Springfords
Deals 2 2 1 1 1
Value >£1m >£1m c. £143.3m £11.5m £1.3m
Investors 1. The Royal Bank of Scotland 2. The Co-operative Bank 3= Archangel Informal Investments 3= Barwell 3= Scottish Co-investment Fund 3= TRI Capital
Deals 3 1 1 1 1 1
Value >£1.5m £11.5m c. £1.8m c. £1.8m c. £1.8m c. £1.8m
Initiators 1= Anderson Anderson & Brown 1= Hall Morrice
Deals 1 1
Value >£0.5m >£0.5m
All deals with an undisclosed value are credited as £0.5m
commercialise a new class of antibacterial product – DNA Minor Groove Binders. It is dedicating its focus initially to the development of small molecules with specific antibacterial effects against resistant bacteria. Dr Miroslav Ravic, chief executive of MGB Biopharma, says: “The introduction of a new class of antibacterial is an all-too-
rare event in medical science. We are particularly proud to be working with the DNA Minor Groove Binder Technology from the University of Strathclyde – I believe the last Scottish association with the discovery of a new antibacterial class was none other than that of Sir Alexander Fleming’s discovery of penicillin 82 years ago.” n Scottish Deals & Dealmakers 27