The vibrancy of Scotland’s tech sector is impressive, and the new Industrial Strategy and a supercomputer in Edinburgh could fuel that momentum. Alastair Smith explains why early legal advice is key to maximising these opportunities, turning innovation into long-term success.
A recent report on the best cities in the UK to launch a new business in 2025 had Edinburgh in the top three. Glasgow and Aberdeen also featured in the top 10 of the 60 cities analysed in the study, which looked at elements like commercial property, high-speed internet availability and local talent pools.
The findings do not surprise me. My colleagues and I see first-hand how Scotland’s thriving start-up scene and tech sector attract ambitious businesses and innovators. And like others involved in this scene, we were excited about the UK Government’s recent decision to reinstate plans for the UK’s most powerful supercomputer at the University of Edinburgh.
By giving scientists the compute power to research anything from medical treatments to climate change, the supercomputer can help the next wave of spinouts to launch and scale. Scotland’s innovators, entrepreneurs and technology investors can be at the heart of this.
Adding to the opportunities, they will also be supported by the new UK Industrial Strategy’s focus on sectors in which Scotland excels – including advanced manufacturing, clean energy, digital and technologies, creative industries and life sciences.
Support for tech companies in Scotland
Commentators point to several reasons why cities like Edinburgh, Glasgow and Dundee have become hubs for tech innovation. They include Scotland’s world-class universities, strong public funding from both Holyrood and Westminster, and a collaborative ecosystem spanning fintech, life sciences, biotechnology, data science and AI.
Young businesses also benefit from a growing range of incubators and accelerators, where they can make use of workspace, high-speed internet, training, mentoring and connections.
Last year, for example, 975 start-up tech companies, in sectors from medical technology to AI to space, took part in the Scottish Government’s Techscaler business accelerator programme, almost double the number from 2023. We at Lindsays have talked to a number of these businesses and founders. Companies participating in the programme have raised more than £118 million of capital investment in the past two years, from both private and public sources.
‘Marketplace’ events like the recent EIE 2025 / Tech Tour event at the University of Edinburgh amongst other conferences also create connections, opportunities and momentum in the ecosystem here.
However, while this ecosystem of research, talent and funding has powered Scotland’s tech growth, there is one other essential element in the mix which is often overlooked. That’s the professional support, particularly experienced legal expertise in this space, available across the Central Belt and other cities.
Advice can be the difference between success and failure
Whether people are creating a video game, developing medical devices, innovating in space or applying AI to societal challenges, their future success is likely to depend on good legal (and financial) advice from day one.
Without that, they could lose control of their ideas or inventions, miss out on investment and funding opportunities, or find themselves caught up in regulatory breaches, contractual disputes or deadlocks between different directors. Advice from experts who are immersed in the technology sector can help businesses steer clear of these risks and build for the long term.
It's a similar scenario for early-stage investors looking to put capital into the technology sector: when doing due diligence into potential investments, they need the support of advisers, including lawyers who can ask the right questions about intellectual property, structure and other issues.
Thanks to Scotland’s strong track record of tech innovation, we at Lindsays have a real niche in assisting in such scenarios.
Key legal issues for the tech sector
If you’re a young high-growth tech company in Scotland, what are the legal issues that you should be considering or getting advice on?
At Lindsays, our own list would certainly include:
- Intellectual property (IP) – including copyright, licensing, trademarks, patents, designs and contracts – to protect innovation from the outset
- Drafting shareholder agreements, investment agreements, articles of association, and mechanisms for handling breaches or deadlock
- Share options for staff (including Enterprise Management Incentives or Company Share Option plans and implementing and explaining the incentive well)
- Contracts with suppliers, customers and other commercial partners
- The use of non-disclosure agreements with suppliers or others
- Regulatory matters, in particular around data protection (UK GDPR) and the use of AI
- Commercial property
- Advice on any plans or arrangements for raising finance, joint ventures, mergers and acquisitions
- Employment law
While the list may appear daunting, the key point is that early advice on these issues can prevent much more serious problems arising later – problems that could scupper a funding round, undermine your IP, or divert management attention away from growth.
Similarly, angel investors who get early input from lawyers experienced in the tech sector, can get a good idea of the key areas to address with the businesses they’re interested in.
Turning great ideas into great businesses
At Lindsays, we work on these issues with companies and investors across a whole range of tech areas – spanning video games, technologies with military or space sector application, AI, drug discovery, medical devices, avionics and renewables technologies.
The diversity of work illustrates the strength and momentum of Scotland’s tech scene, and we’re excited that developments like the planned supercomputer could support further success in the sector.
We’ll certainly be on hand with the legal expertise and guidance to help turn bold ideas into great businesses. Whether you’re scaling a tech business or investing in one, get in touch to learn more.
Published 31 July 2025
* The study was conducted by Approved Business Finance to identify the cities offering the most potential for new businesses in 2025.
