Hoping to fly on angels' wings …

Published on Thursday 5 November 2009 20:34

PRIVATE investors are still an attractive source of funding while bank managers' doors appear to remain closed, according to hi-tech firms at yesterday's Connect conference in Edinburgh.

Business angels and venture capitalists said they were stepping into the gap left by banks not lending to small firms.

Up to 45 million from 26 "angels" was up for grabs yesterday, with 15 technology firms trying to catch investors' eyes.

Connect Scotland – an annual gathering of investors and tech firms that began in 1996 – folded last year under a pile of debt.

But the concept was salvaged by Glasgow-based GO Group, which supports small business start-ups and runs similar conferences around the UK.

Isabell Majewsky, chief executive of the GO Group, told The Scotsman: "We talked to investors and tech firms about what they wanted from Connect and then stripped it back to the basics – investors want short, sharp pitches."

She abandoned plans for lectures and a debate and instead focused on coaching the 15 businesses pitching for investment.

Angels represented at the event included TriCap, Pentech Ventures, Kelvin Capital and Scottish Equity Partners.