Edinburgh-based venture capital firm Par Equity has today announced the launch of its new venture fund - Par Equity Ventures I LP.
The firm has secured a first close of £67m to boost innovative technology companies with high-growth potential in the North of England, Northern Ireland and Scotland. Par Equity will continue raising capital to close out the full £100m target fund size.
Backed by the Scottish National Investment Bank and British Business Investments, with further support from the Strathclyde Pension Fund, Par Equity will add further resources and capabilities to its venture programme, accelerating some of the North of England, Northern Ireland and Scotland’s most promising tech scale-ups and strengthening the talent pools in these regions.
The fund will be managed from Par Equity’s Edinburgh office, as well as its recently launched Leeds base, and will lead or support Series A funding rounds.
Certified B-Corp, Par Equity, partners with early-stage companies, operating B2B business models and with strong IP. Many of these companies are innovating in the fields of health tech, climate tech and industrial tech, often driven by new technologies such as robotics, photonics, advanced materials and artificial intelligence.
Launched in 2008 by Paul Munn, Robert Higginson, Paul Atkinson and Andrew Castell, Par Equity has invested over £160m into 77 early-stage technology companies to date, with 30 realisations, including Edinburgh-based Current Health, which was Europe’s second-largest digital health exit ever following its sale to Best Buy.
Par Equity’s investment model combines its discretionary managed funds with the experience of its engaged pool of sophisticated angel investors. This hybrid investment approach is drawing attention from the industry, with the firm winning Best Angel Group of the Year (UK Business Angel Awards, 2021 and 2023) and Best EIS Manager of the Year (EIS Association Awards, 2021 and 2022), as well as being selected as a finalist for the upcoming European Private Equity Awards for Venture Capital House of the Year and Venture Capital Deal of the Year in 2022.
About Par Equity
Par Equity is a leading venture capital firm, based in Edinburgh, investing in innovative technology companies with high growth potential, in the North of the UK. Since it was founded in 2008, Par Equity has invested over £160m across 77 companies, leveraging a further £268m of capital from third party investors. Par Equity’s investment thesis is to combine the professionalism and rigour of a venture capital manager with the skills and expertise of a broad base of individual investors who can add value throughout the investment life cycle. This investment approach has produced strong and consistent returns across 30 realisations to date.
About Scottish National Investment Bank
The Scottish National Investment Bank is Scotland’s first development investment bank, wholly owned by the Scottish Ministers on behalf of the people of Scotland.
The Bank is an impact investor, focussed on delivering both commercial returns and mission impacts with its investments. The Bank is a PLC and operationally independent from government.
The Bank invests in business and projects connected to Scotland to deliver long term, patient debt or equity investment where the private market is failing to provide the support businesses and projects
require to grow.
The Bank’s missions are:
- Supporting Scotland’s transition to net zero
- Building communities and promoting equality
- Harnessing innovation to enable our people to flourish
The Scottish Government has committed to capitalising the Bank with £2bn in its first 10 years. Over time as the Bank’s initial investments are repaid, the Bank will reinvest those funds in businesses and projects creating a perpetual investment fund to support the Scottish economy in the long term. The Bank was established in November 2020
About British Business Investments
British Business Investments Limited is a wholly owned commercial subsidiary of British Business Bank plc, the UK government’s economic development bank. British Business Investments aims to earn a commercial return by investing – through finance providers – in smaller businesses and small mid-caps, pursuing investments on a fully commercial basis without receiving any economic advantage from the government. Find out more at bbinv.co.uk.
The Bank and its subsidiary entities are not banking institutions and do not operate as such. They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.
About Strathclyde Pension Fund
Strathclyde Pension Fund (SPF) is part of the Local Government Pension Scheme (LGPS). It is one of 11 LGPS funds in Scotland and around 100 in the UK. Strathclyde is the second largest of the UK LGPS funds. Investment in the Par Equity Northern Scale-Up Fund comes from the funds internally managed Direct Impact Portfolio (DIP). The DIP has a Primary objective identical to overall SPF investment objective with a Secondary objective of adding value through investments with a positive local, economic or ESG (environmental, social, governance) impact. The fund is focused on the UK and the Equity, Long Term Enhanced Yield and Short Term Enhanced Yield asset categories.