Call to harness Scots abroad for investment funds for tech firms
SCOTTISH Enterprise should harness its GlobalScot network to pump more cash into up and coming technology companies, according to an investment expert.
Nelson Gray, special projects director at business angel group Linc Scotland and a respected investor, said all Scottish expats should be given the chance to work with fast-growing tech companies.
He said the GlobalScot network could be used to introduce investors to Linc Scotland or business angel syndicates such as Archangel or TriCap.
Using examples of successful tech outfits - such as East Kilbride-based police and security software maker Memex and Craneware, the Livingston-based developer of hospital billing programs - investors should be encouraged to back the next generation of tech specialists, he said.
Gray told Scotland on Sunday: "It's not just about going out and telling people that it's their patriotic duty to invest in the 'old country'.
"We need a strategy that builds up relationships between the groups of investors that we already have here and Scots living abroad.
"We can then bring them into the fold by showing off good companies like Memex and Touch Bionics and use that to give them the opportunities to invest."
Gray said investors should not be encouraged to pump money in on their own but instead should invest alongside existing business angels.
He suggested setting up a "side-car fund" into which overseas angels could place money to be used alongside deals involving Scottish angels, or in funding deals within specific sectors in which the angels are interested, such as medical technology.
Gray added: "A side-car fund would allow investors to give £10,000 or £100,000 and remain anonymous if they wished or simply not take an active role in running a firm.
"I think that would be an attractive way to allow investors to put relatively small amounts of money back into Scotland."
His comments came as figures from Scottish Development International (SDI) showed that American investors are waking up to the attractions of doing business north of the Border.
Scotland is now ranked as the seventh most attractive destination for business investment, up from 12th last year and 20th two years ago.
The rise came after a marketing and promotion campaign from SDI, the arm of Scottish Enterprise set up to attract overseas investment.
Scottish Enterprise said GlobalScot was already getting involved with some Scottish companies, such as David Cairns, who became chairman of software firm PrismTech.
A spokesman added: "Many of our GlobalScot members offer companies advice around investor readiness, which has been a huge help for companies in preparing their business for future funding rounds.
"We also know informally that this has led to investment from GlobalScot while others have introduced companies to investors within their networks. This is certainly something we're keen to encourage and explore further."
For full news story please go to: Scotland on Sunday