Owners selling 'too early'
Technology firms told to focus more on sales and scale
Tech hubs create lots of firms but sales are key
Scottish technology firms have been advised to switch more of their focus from developing their products to achieving sales and scale.
They are spending excessive time trying to create the “perfect product” and many are selling their businesses too early.
These were the views of investor Dan Halliday from Foresight Group who was guest speaker at Johnston Carmichael’s first Meet The Tech Investor event.
Addressing the session, held in the firm’s Dundee office, Mr Halliday said Scotland is producing many exciting technology businesses, but investors wanted to see a revenue stream.
“The most attractive businesses for investment are typically in the B2B space, where they are less exposed to consumers’ disposable income,” he said.
“Software as a service models, which attract income through subscriptions, are especially appealing as investors like to see predictable revenue.