Tech start ups get no help from banks

A senior investor has come down hard on the banks that have posted ‘not interested’ on their doors when it pertains to helping the start-up technology sector of Scotland. Investment director and panellist at Edinburgh’s venture capitalists’ Archangels and Par Equity, Rob Lowe said that these start-ups were very dependent on the business angels to jump start their businesses.

The availability of resources is stiff and there are many small new companies looking for investors to help them progress with new technological ideas so they are becoming more and more dependent upon groups of business angels and venture capitalists who have had to try and pick up the financial slack from the banks.

Rich SME/Start-ups are being stifled by the “not interested” signs posted by the banks it is quite clear. If early development of IT enterprises continues to be ignored by banks, the companies will have to go looking in America to find the needed funding.