£2m Angels investment portfolio set to close

One deal has already completed and the first firm to attract funds is Larosco, an Edinburgh-based technology start-up that develops online social network marketing tools.

A five-figure investment will enable it to accelerate the launch of its products. Sales director Laura Sullivan said: "Now that we have investment securely in place, we can take our radical software from concept stage to the market."

Following the investment, Larosco intends to launch BongoMagic this summer, a product which it says will help clients in their internet-based marketing efforts.

Sullivan added: "Angels Den found us the perfect investor, one who is absolutely 100 per cent committed to helping us achieve our aims."

Cameron Thomson, the Scottish regional director for Angels Den, said the Larosco deal and the four others in the pipeline involve sectors as diverse as the music industry, alternative energy and child safety.

Thomson, a former banker, added: "It's all about giving bright individuals and organisations in Scotland guidance, backing and the opportunity to shine on the commercial stage."

Angels Den said it has signed up record numbers of wealthy individuals seeking higher returns on their investments after becoming frustrated with low or even negative returns on mainstream investments in savings or shares.

To qualify, investors require at least 250,000 of available capital to invest directly into start-up and early-stage companies. More than 200 deals were done last year, at an average size of 220,000.

Founder Morrow says he now oversees more than 3,000 individual entrepreneur-to-angel pitches a year.

This is backed up by at least three "speedfunding" events monthly throughout Britain and abroad.