Banks 'snub' tech firms

A SENIOR business angel investor has lambasted the banks for posting "gone fishing" notices on their doors when it comes to backing Scotland's technology start-up community.

Rob Lowe, an investment director and advisory panellist at Edinburgh venture capital houses Archangels and Par Equity, said fledgling firms were heavily dependent on business angels to get their enterprises off the ground.

"There are so many infant companies looking for investments to progress great technology ideas but competition for available resources is stiff and they are becoming increasingly dependent on venture capitalists and groups of business angels who are having to pick up the financial slack," he said.

"When it comes to the banks one thing is clear. That the 'gone fishing' notice posted on most banks' doors is stifling rich SME/start-up technology." said Lowe, who is also a non-executive director of several Aim-listed firms.

If the banks persist in ignoring early development IT enterprises then firms will have to look to America for funding, he said.