Business Growth Fund completes £3.85m investment in Glasgow-based tech firm
Investee's product described as "a genuine step change"
Glaswegian technology firm M Squared Lasers has received £3.85m from Business Growth Fund (BGF), the investment vehicle backed by Britain’s largest banks.
The deal, which sees the Business Growth Fund take a minority stake in the investee and join its board, will help M Squared research and develop its laser and detection technology for the oil, gas, defence and medical sectors.
M Squared, which was founded in 2005 as a spin-out from Strathclyde University, has already received significant backing from Scottish Enterprise and Melville Capital. The company’s co-founder and CEO, Dr Graeme Malcolm, believes this latest investment is ideally timed:
“We are seeing considerable expansion in the potential applications for lasers, not least in the defence and medical industries where detection capability is critically important. “For us this offers real growth potential. BGF’s investment will allow us to further develop our laser technology and fund our sales and marketing efforts. In particular, we are looking at new market opportunities in remote sensing, and will specifically focus on developing our Firefly laser product, which has a clear application for the security and defence, oil and gas, and food and drink industries.”
BGF has already backed one early-stage Scottish company this year, having invested in Aberdonian oilfield service provider STATS, and has backed all manner of English companies from Mexican food chains to toy firms.
The Business Growth Fund’s Edinburgh-based investment director, Duncan Macrae, said: “M Squared’s laser technology represents a genuine step change. Its products are smaller than others on the market, can be calibrated in minutes rather than hours and can be maintained and upgraded remotely via a web browser.
“Customer referencing has been overwhelmingly positive and we are very pleased to be backing such an innovative Scottish business and a first class management team.”