Investors from the global fintech sector could soon provide Scotland with hundreds of millions of pounds to boost fledgling startups.
Edinburgh(Scotland)- A new project could see as much as £1 billion per year in Scots fintech funding from international investors to boost business portfolios.
The plans are looking to create greater links between Scotland’s fledgling startups and international investors and capital that are the critical pathway to becoming successful businesses.
Led by Scottish venture builder and cluster developer Vivolution, the Scots fintech funding project is delivered in collaboration with the Scottish Government’s Scottish Technology Ecosystem Review and tapping funding and expertise from international investors including Silicon Valley Bank, EquiSolve, Paris Ventures and the Rainmaking Fund.
The plans follow on from a meeting held earlier in May that brought together some of Scotland’s most promising fintech companies, such as Exizent, Zumo, Nude, EedenBull, Asura and Cerebreon alongside investors and corporations such as Capgemini and Mastercard.
Participants at the Scottish Government-supported event all noted the potential in Scotland’s growing fintech market, and the need to bring greater capital liquidity to local businesses.
Additionally, the project will also help companies to link up with potential corporate clients and to qualify the routes-to-market-to-sales.
The plans build on Scotland’s successful fintech ecosystem, with FinTech Scotland harnessing the activities of more than 200 companies. The Scottish Government is also kickstarting its Tech Scaler Ecosystem Review programme which is designed to create Venture Scaling ‘Open’ Ecosystem Studios around individual technology sectors.
Vivolution said it was focusing on funding as there is a clear hunger for international investors for sustainable technology solutions to grow and prosper. Venture funding globally grew by 92% last year, according to data company Crunchbase.
Commenting on the funding boost, Vivolution CEO Mark Roger said “Our aim is to dispel the myth that there is not enough funding out there for our growing companies – the opposite couldn’t be more true. In fact, there is a significant shortage of investable companies on the global stage for the international private investment market.
“The investors we are speaking to are excited to partner with us as we play our part in opening up further the Scottish fintech sector to international investment, while our corporate partners are eager to engage to develop world-leading products and services.
“We in Scotland have the companies and the potential, and our investors and corporations have the capital, cash and the know-how to turn start-ups into unicorns.”
As well as access to international investment, the project also aims to help companies showcase their innovative solutions to financial services institutions, who often can become key purchasers of solutions from fintech.
Plans also include a series of roadshows for Scottish fintech start-ups in locations such as London and New York.
Stephen Dury, Vice President, Strategy, Innovation & FinTech at Capgemini Invent, said: “It is a pleasure to be part of a forward-thinking debate on the future challenges and opportunities for fintech with a base in Scotland. We look forward to continuing our work together to make this a springboard for collaboration and growth.”
Katie Lewis, COO, Rainmaking, added: “The opportunity to bring multiple partners together to have meaningful discussions around growth barriers and challenges is an important part of ecosystem development, and we believe will successfully encourage the growth of the fintech startup ecosystem in Scotland.”