How equIP helps tech companies scale up
Jack Letson on a tool that gives firms the wider support they need to grow
In 2018, CMS launched its equIP programme in Scotland with a clear objective: to help tech and/or intellectual property-rich start-ups build the foundations required to scale successfully. Eight years on, the programme continues to thrive.
equIP operates like a curated incubator, investing in start-ups through industry introductions, exclusive training, discounted legal services and an active peer network. At its core is a simple proposition: helping founders put in place the legal, governance and commercial foundations that will support their businesses as they grow, seek investment and eventually prepare for exit. The programme has played an important role in helping companies establish robust governance, compliance and contracting practices-key requirements in the growth journey to becoming a successful business.
Since launching equIP in Scotland, we have worked alongside a range of Scottish technology businesses, advising on the legal and commercial issues that inevitably become more complex as companies move from a position of being a start-up to one with real scale-up potential.
As businesses grow, enter new markets and raise external capital, the decisions they make around intellectual property, regulation, funding and the people who are needed to drive forward their growth aspirations become increasingly important. This is where experienced legal advisers can add real value.
The equIP programme was designed to channel the expertise within CMS and its position as a global law firm to best enable the sharing and nurturing of great ideas for aspirational Scottish businesses. The programme, therefore, also focuses on helping such companies develop and protect their innovation, which provides opportunities to grow their UK and, in some cases, international markets.
There are also more practical, but extremely important, aspects of support that our specialised lawyers provide through this initiative focusing on legal, commercial and operational issues that scale-up businesses face when moving into a new market.
Protecting innovation through a well-crafted IP strategy is one of the core legal considerations facing high growth companies in Scotland. Taking the time to build a robust and defensible IP position can provide a competitive moat for such businesses, which allows them to prosper.
Managing regulatory compliance is a further key issue for scalable companies where lawyers can add value - whether it’s new legislation, tightening of cross-border regimes, or increasingly prescriptive technology and data privacy frameworks. Founders who view such compliance measures as a strategic function are far better placed to maintain the confidence of investors and partners who expect regulatory maturity.
With capital becoming increasingly harder to access, especially outside the AI sector, securing investment is a key commercial issue where advice from experienced and well-connected legal advisers can be vital for aspirational businesses.
Likewise, no high-growth company scales successfully without the right management team, which often needs to be augmented through the various rounds of growth funding. Through our equIP programme, we’ve been able to offer employment and share option structuring together with access to a network of peers whose insights can help aspirational businesses access further quality people.
These issues are interconnected: protecting innovation strengthens the investment proposition; strong governance and regulatory discipline builds investor confidence; the right funding enables businesses to recruit the people they need; and the right team creates the capability to execute the next stage of growth.
By combining specialist legal advice with the reach and connectivity of a global law firm, equIP helps ambitious Scottish companies build not simply for their next funding round, but for sustainable long-term growth.
Jack Letson is a partner and Head of Corporate, CMS Scotland