Gillian Fleming of Mint Ventures on why the country needs more female investors

Yet a structural imbalance sits at the centre of the system: there are more investable businesses than there is capital willing to back them.

That gap is most visible at the earliest stage.

Companies that are pre-revenue, asset-light and unable to access bank finance rely heavily on angel investment and it is here that supply is falling short.

While investment volumes have increased in recent years, much of that capital is now being deployed into follow-on rounds rather than new deals.

In a more cautious market, investors back existing portfolios rather than taking fresh risk and many investors are awaiting cash to be released through a company sale or flotation commonly referred to as an exit to enable them to further invest.

The result is a bottleneck in the funding pipeline.

Early stage investing in unlisted companies, known as Angel investment remains critical.

It enables companies to move beyond bootstrapping, unlock grant funding and build the early traction required to attract venture capital.

Without it, growth slows and the pathway to scale becomes harder.

Gillian Fleming, founder of Mint Ventures, said the issue is not the ecosystem itself, but participation within it.

She said: “Scotland has a very well developed angel investment ecosystem, and we are fortunate to have organisations like Angel Capital Scotland bringing groups together, sharing best practice and supporting the market.”

A key constraint is the composition of the investor base.

Women account for only around 14 per cent of angel investors in the UK compared to 37 per cent in the USA and this has remained static for several years, while activity remains heavily concentrated in London.

Mint Ventures was set up to address that imbalance, focusing on education and accessibility for women entering angel investing and men who would like to back women led companies.

Gillian said barriers to entry are often based on misconceptions.

“There is a persistent misconception that you need to be very wealthy or have a very high risk appetite to become an angel investor, and that simply is not the case,” she said.

Expanding the investor base is increasingly seen as essential to strengthening Scotland’s SME growth pipeline.

At the earliest stage, investment decisions are driven less by data and more by people.

Tax incentives such as SEIS (50% of your investment in tax relief) and EIS (30%) can help de-risk, but they are rarely decisive in influencing choice.

Gillian said the focus is firmly on founders.

“The financial forecasts at this stage are built on assumptions and they will change as the business evolves, so we never expect them to be perfect,” she said.

“What we are really assessing is the founding team, their vision and ability to lead the company, to build the right culture and to take it forward.”

That reflects the uncertain nature of early-stage investing, where judgement carries more weight than modelling.

It also highlights a shift in the role of angel investors. Increasingly, they contribute more than capital, providing access to networks, strategic guidance and operational support, using their legacy of knowledge and connections.

That can include introductions to customers and partners, support with hiring, or input into governance and board structure. In some cases, angels can apply for formal roles as advisers or non-executives as companies scale.

Gillian said expectations on both sides have evolved.

“It is not always just about providing the money and stepping back although being a passive angel is always an option,” she said.

“In most cases, investors want to be supportive to be part of the company’s journey and add value in different ways, whether that is through making introductions, helping with recruitment, supporting strategy or contributing at board level.”

For founders, this is changing how investment decisions are made.

Securing funding is no longer simply about valuation. It is about building the right investor group, one that brings experience, access and alignment as well as capital.

Governance is also moving up the agenda earlier. At this early stage angel investors are increasingly helping companies transition from informal advisory structures to more formal boards, ensuring they have good governance and are prepared for future funding rounds.

At the same time, there are calls to simplify the investment process itself.

Legal costs and deal complexity can act as a barrier, particularly for smaller rounds.

More standardised documentation and platform-based approaches are helping, but challenges remain.

Gillian said reducing complexity could unlock more activity.

“There is definitely an opportunity to make deals simpler and more efficient, particularly at the early stage where legal costs can become disproportionate,” she said.

Scotland’s ecosystem is not short of ambition, capability or opportunity.

But until more capital, and more investors, in particular to back women led companies enter the market, the risk is that too many companies will fail before they reach scale.

Angel investors are bringing more than money to the table

Angel investment is increasingly defined by what comes with the capital.

While funding remains critical, founders are placing greater value on the networks, experience and influence that investors can provide.

At the early stage, that support can be as important as the cash itself.

Angels are helping companies recruit senior staff, secure customers and form strategic partnerships.

They are also playing a growing role in shaping governance, from informal advisory input through to board positions and non-executive roles.

That shift reflects the realities of building a business in a competitive market, where access to the right people and opportunities can accelerate growth more quickly than funding alone.

“It is not just about the money,” said Gillian Fleming of Mint Ventures. “It is about what investors can do to support the company on this journey together.”

Top five: what angel investors look for at early stage

1. Founder capability The ability to lead, execute and adapt matters more than financial projections.
2. Clear purpose Investors want to understand why the business exists and the problem it solves.
3. Early traction Evidence of demand, even without revenue, strengthens the case.
4. Honesty and transparency Clear, accurate information builds trust and credibility during due diligence.
5. Simple, relatable story Founders have one opportunity to make an impact with investors, clarity and communication are critical.