Touch Bionics, Livingston, Scotland, announced on January 20 that it had received an £800,000 ($1.3 million) loan from members of Archangel Informal Investment Ltd, Scotland. According to Touch Bionics, the loan is designed to support Touch Bionics expansion following the company’s December 2009 launch of its ProDigits bionic-finger system.
“Touch Bionics, like so many companies, has myriad financial considerations as it grows and brings new products to market,” Touch Bionics CEO Stuart Mead, said. “Many companies in a growth position such as ours are in a challenging spot-expanding into new markets and hiring additional staff in order to meet growing demand requires funding. Yet the banks are hesitant to provide funding because they’re still risk averse as a result of the financial crisis. This can hamper progress needlessly-it’s time for the banks to step up and start supporting profitable, fast-growth companies.”
“The Banks would not lend without a three-year track record of profits,” said Archangels Chief Executive John Waddell. “Touch Bionics is at too early a stage to attract bank funding in the current market, but the company is profitable and needs additional funds to continue its fast pace of growth. Archangel members, who are Touch’s principal investors, agreed to lend Touch Bionics £800,000. Scottish Enterprise’s Scottish Co-investment Fund also participated in the loan, as a co-investor alongside Archangel.”