Angels are waiting in the wings for the right tech investment prospect

The creativity, energy and innovation in Scotland's technology sector never fails to impress.

Ideas never appear to be an issue. Securing the investment to bring them to life, though, is often a major challenge for creators and entrepreneurs.

That's where the impact of Scotland's angel investors is important.

Across the tech and wider business sectors, their investments in fledgling companies are making a significant difference to the scale of success.

Thousands of jobs and economic growth have been unlocked by the ability of angels to recognise potential and back that financially at the earliest stages.

Recognition and readiness are, however, two different things. Indeed, greater understanding of the two could undoubtedly further enhance what is already a considerable angel investment scene across Scotland.

Preparing businesses for investment

One area where angel investors can make an increasing impact is in creative technology. I am currently involved in Abertay University's DARE Academy, which is a tremendous showcase for the emerging talent within Scotland's vibrant, economically significant and internationally recognised gaming industry.

This initiative gives entrants the opportunity to thrive technically while also benefitting from valuable industry support and mentorship.

It also, critically, develops the wider business skills that can define success. That ranges from understanding the legal steps required to protect creative rights, to knowing what they need to consider when working with creative partners, contractors or future employees.

It helps underpin the message that preparing for investment is about far more than a strong idea or pitch deck, a fact which can be all too easily overlooked in the excitement of the creative process.

For entrepreneurs, particularly in the tech and creative sectors, success often depends on how well the legal jigsaw fits together when seeking investment that can take an idea or business to the next level.

As part of Glasgow Tech Week next month we will be bringing together corporate, employment and IP expertise to highlight some of the issues that we often see, to help tech leaders understand how investors assess legal readiness - and how businesses can prepare for their questions.

My experience is that the entrepreneurs and companies which enjoy success in finding the right funding are those who have carefully considered their structure and shareholder agreements, who have the fundamental building blocks surrounding intellectual property in place, and whose employee and contractor arrangements are sound and appropriate.

Only when all of those elements are in place can businesses consider themselves "investor ready".

Looking beyond the investment

With a sound legal structure behind them, entrepreneurs can then seriously analyse some of the more emotive points that angel investment raises. They can, for instance, consider how much of their company's shareholding they may be willing to give up in order to secure investment needed to take the next step to develop their technology and commercial offering.

They also need to consider whether an angel investor can bring the right contacts or expertise, in addition to the cash injection.

The good news is that the appetite for investment in Scottish companies remains strong among those willing to back promising start-up and emerging technology businesses.

It was a fact highlighted by the British Business Bank's most recent Small Business Equity Tracker, which showed that Scotland defied the general UK trend with equity investment value rising by 74% during 2025.

Presented with the right proposition, angels are waiting in the wings, ready to invest. The question that founders must first ask themselves, though, is whether they are ready for them? The businesses that can confidently answer "yes" are likely to be those best placed to turn innovation into long-term success.

Alastair Smith, Partner, Lindsays