Funding for growth firms
Interview: Steven Morris, investor
Spinning a new tech hub
It’s better known for its castle on the hill and the monument to a famous warrior, but Stirling could be on the cusp of something new.
The ancient city is being touted as the next technology centre which has helped build Edinburgh’s reputation as a source of new ideas.
An injection of capital is helping to spark a wave of start-ups, some spinning out of the university, and there is talk that Codebase, the Edinburgh incubator which has helped drive the capital’s rebirth, will open a satellite operation thirty miles north.
One Stirling-based entrepreneur is building a portfolio of emerging companies through an investment business which is harnessing the wealth of global Scots.
From his office in a converted Victorian villa, Steven Morris has attracted £8 million into 11 businesses since he launched ESM Investments just over four years ago.
Morris made his own fortune a decade ago when he sold a video distribution business to a US company. Through his connections, mainly in Asia, he’s been able to build a syndicate of mainly ex-pat Scots who are keen to put their money into promising companies back home.
He says there is no shortage of opportunities, not just among start-ups, but also in growth firms which are looking for the next stage of funding.
“I am looking to re-balance the portfolio with some later stage companies so that we have them maturing at different stages,” he says.
Morris has worked closely with institutions such as Scottish Development International and the Scottish Investment Bank (SIB) and says growth in the Scottish technology sector is impressive.
But it means demand for funding is outweighing supply within the country’s borders – one reason he’s sought sources of finance from overseas.
“The market is under-served for early stage finance,” he says. “More companies are going to London and overseas to get the funding they need, and London-based investors are heading north knowing these companies want it.”
