Legal considerations can play a key role in helping technology businesses secure funding and support growth
Investment interest in Scotland’s growing tech sector is strong, but the case for support needs to be compelling, experts say.
Earlier this week, Lindsays hosted a special event to help businesses in the industry prepare to attract new backers as part of Glasgow Tech Week.
Getting your tech business investment ready: The legal jigsaw explained brought together business founders, owners, investors and advisors to share insight on the critical pieces that need to be in play to attract investors.
Corporate and technology lawyer Alastair Smith, a Partner at Lindsays, who advises businesses and investors, led the event.
“From the people we work with, it’s clear that the appetite to invest in Scotland’s tech sector is strong. Capital remains available for innovative and exciting start-ups and growing enterprises.
“The innovation within Scotland’s tech sector is world-renowned. The ongoing potential within it is huge, with investors domestically and internationally open to financing emerging initiatives or helping businesses move to the next level.
“Investors are, however, increasingly selective about where they direct their support. With that comes added scrutiny of business plans and growth prospects, which means those considering or seeking investment must be prepared. Those who are best prepared stand the greatest chance of securing successful growth.”
Glasgow Tech Week - organised by Glasgow City Innovation District (GCID) - features more than 40 events, bringing together technologists, artists, designers, researchers, investors and industry leaders to explore how creativity and technology combines to drive innovation and growth.
The Lindsays event - which featured a capacity audience – also featured Daniel Gorry, a Partner in the firm’s employment law team.
They were joined for a panel discussion by Niki McKenzie, Joint Managing Director of Archangel Investors, senior Barclays Eagle Labs executive Rafee Ahamed and Andrew Durkie, a Partner at Eos Advisory.
The legal building blocks for investment readiness
The session, held at Lindsays’ Queen Street offices in the city centre, focused on the key legal building blocks that investors expect to see in place before committing capital, from company structure and shareholder arrangements to intellectual property ownership and employee documentation.
Alastair adds: “The creativity, energy and innovation in Scotland’s tech sector never fails to impress me.
“Securing the investment to bring ideas to life can, however, be a challenge for creators and entrepreneurs.
“Greater understanding of how enterprises can ready themselves for investment - and the considerable economic benefits they can bring could undoubtedly further enhance what is already a considerable angel investment scene, and wider funding landscape, across Scotland.”
Anchored by the University of Strathclyde, GCID brings together industry, investors, academia and government to deliver inclusive economic growth through innovation.
