Scots technology companies lead VC investment

TECHNOLOGY companies accounted for most of the venture capital raised in Scotland in the first three months of 2018.

Figures from KPMG’S Venture Pulse report, which highlights key trends, opportunities and challenges facing the venture capital market, reveal that £6.3 million out of £8.4m was raised by businesses in Scotland’s tech sector.

This mirrors a Uk-wide trend, according to the report, with some fintech businesses raising $100 million in the first quarter of 2018.

However, total venture capital investment in Scotland and the rest of the country, following a record 2017 which saw more than £3 billion invested into UK companies, slowed in the first quarter of 2018.

Standout deals included £2m raised by Mindmate, the Glasgowbased tech firm which developed an app to boost brain activity.

The figures reflect findings from KPMG’S 2018 Global Technology Innovation Report which revealed the UK is the fourth most promising market in the world for innovation, disruption and technology breakthroughs – behind the US, China and India. “VC investment in Scotland slowed in the first quarter as investors focused on smaller numbers of later stage deals,” said Sam Subesinghe, head of management consulting at KPMG in Scotland. “Brexit is cited as the main reason for this, but while overall investment has dropped, the tech sector continues to grow.”

Scotland’s tech scene attracted investors as it was well-established and goes hand-in-hand with a strong financial services sector, Mr Subesinghe said. The country’s university infrastructure also means there is a strong supply of highly-skilled graduates.