Scottish tech is making strides, but there are hurdles to overcome.
- A recent UKTN and KPMG panel delved into accelerating Scottish innovation.
- Venture capital investment in Scottish firms remains strong, yet more is needed.
- Addressing the digital skills shortage is crucial for sustained growth.
- International expansion requires breaking down existing silos within the industry.
The Scottish tech industry’s recent developments reflect a promising yet challenging landscape for local firms. In a panel discussion hosted by UKTN and KPMG, experts analysed how Scotland can enhance its global tech standing and sustain its growth. It was highlighted that while Scottish companies have attracted significant venture capital investment, with £184 million secured in the first half of 2024, there is a pressing need for more funding, especially at the scaleup stage. Amy Burnett of KPMG identified this funding gap, describing it as a ‘chasm’ requiring urgent attention.
Maintaining momentum requires firms to engage with local ecosystems. Patricia El-Jichi of Par Equity advises companies to utilise local incubators and networking opportunities to connect with investors worldwide. Scotland’s collaborative environment offers numerous chances for aspiring tech businesses to gain traction. Local innovation hubs, such as Glasgow City Innovation District and Techscaler, were cited as key facilitators in this process.
A significant challenge for the Scottish tech sector is addressing the digital skills gap. Dr Poonam Malik suggests innovative solutions such as remote working and visa sponsorships to attract global talent. Onyinye Igbokwe from Codebase emphasised tapping into the international student pool at Scotland’s renowned universities. Yet, regulatory barriers, often dictated by Westminster, pose challenges in retaining this talent.
To truly elevate the Scottish tech industry on an international level, a shift in mindset is essential. Sandy Kennedy, director at Intelligent Growth Solutions, champions overcoming the traditional ‘silo’ approach. By collaborating across academia and industry, Scottish firms can gain international success. Kennedy advocates for forming narratives that appeal to top venture capitalists globally, as demonstrated by his company’s strategic expansion into the American market.
Overall, the panel underscored the importance of aligning funding strategies with the right investors and expanding international networks to maintain the upward trajectory of Scottish tech. According to Dr Malik, understanding investors’ risk appetite is crucial, particularly in sectors requiring long-term commitment.
The discussion highlighted key strategies and challenges for the Scottish tech sector’s advancement, emphasizing collaboration and international outlook.
