Over 40% of Scotland’s tech start-ups and scale-ups are targeting the US market for growth but have found access to finance the biggest barrier to their ambitious plans.
That’s one of the key findings from a new survey of 100 data-driven tech start-ups and scaleups, undertaken ahead of this year’s Engage Invest Exploit (EIE) by the event’s organiser Informatics Ventures.
The survey findings also
Interestingly, nearly a quarter of the businesses surveyed have a team where more than half of employees are non-UK nationals, showcasing how attractive a location Scotland is for those developing a tech business, or seeking a career in this sector.
Strong governmental support was highlighted in this year’s survey responses, with over 70% of those surveyed naming Scottish Enterprise or Business Gateway as vital organisations on their journey. Many others noted the important part played by Scotland’s entrepreneurially minded universities, with nearly 36% mentioning Informatics Ventures among the key players.
Other key findings include:
- Around 70% of respondents had raised less than £500k in equity, with almost half being solely grant or self-funded
- Of those that had raised investment (and almost 8% had raised in excess of £3M) the mainstay of funding had come from Scotland and the rest of the UK, but 4% had taken European money – and a further 3% had raised money in the US.
- 64% claimed to be revenue generating
- 62% of businesses had undertaken no Brexit planning
- 46% of respondents had more than 6 members of staff
- Digital health/
medtech/biotech made up 24% of respondents
Steve Ewing, Director of Operations at Informatics Ventures and Engage Invest Exploit (EIE), said: “Scotland boasts a hotbed of tech and data talent. The combination of academic excellence in data science, a vibrant start-up community, excellent government support and additional expertise in areas like biosciences, financial services and marketing analytics creates an ideal environment for data-driven businesses to succeed.
“The aspirations to establish Edinburgh as the data capital of Europe and a renewed focus on entrepreneurship ensures Edinburgh remains synonymous with company creation and quality deal flow for investors. I look forward to Informatics Ventures and EIE remaining at the heart of that, and to supporting the future new businesses the Data Driven Innovation Programme will create.
“The companies at this year’s EIE range from very early stage to 5+ years, and each of them will use the opportunity to pitch to a panel of global investors; many have ambitions of a level that would have been unthinkable just a few years ago.”
Ian Stevenson, CEO of Edinburgh-based cybersecurity start up Cyan Forensics, who will be pitching to investors at EIE19, said: “I’m delighted that Scotland manages to maintain a welcome brand for potential employees. Building a global business is tough but Scotland provides access to a unique skills base, and events like EIE support our ability to attract the right people.”