Tech firms urged to look overseas

SCOTTISH technology companies should look to overseas venture capitalists to help them break into new markets, according to an American investment guru.

Bill Aulet said start-up companies looking for cash should be competing for the attention of investors in Boston, Silicon Valley and other technology centres.

Small firms should also be looking to export their products and services much earlier in their business plans to help grow sales.

Aulet, managing director of the Massachusetts Institute of Technology (MIT) Entrepreneurship Centre, has been coaching spin-out companies and students taking part in Edinburgh University's Informatics Ventures programme.

Last week he was tutoring would-be entrepreneurs in how to raise finance for their start-up companies.

Aulet told Scotland on Sunday: "I'm not criticising Scottish investors but tech companies should be competing on an international scale. If they're out there looking for investment then they can raise their profile and attract new customers too."

Aulet's comments were echoed by Ken Morse, one of his colleagues at MIT and another entrepreneurial tutor, who said Scottish firms should pick venture capitalists who have contacts in overseas markets.

But Nelson Gray, special projects director at Linc, the Scottish business angel trade body, warned against putting too much emphasis on investment from the United States. Gray said: "American investors can sometimes be a little parochial. They like to invest in companies that are close by. We don't want our tech companies to win foreign investment and then disappear overseas.

"I think we should be looking to forge closer links with European countries like Germany."