Nearly half of Scotland’s tech startups and scaleups find access to finance is the biggest barrier to tapping into lucrative US markets, according to a survey from TalentSpark and Informatics Ventures.

Ahead of this year’s Engage Invest Exploit (EIE) conference, the survey of 100 data-driven tech startups and scaleups also shows that 52% of respondents are targeting angel investment to fund their growth – which is expected to fuel job creation across Scotland’s flourishing technology sector.

Strong governmental support was highlighted as an area of great significance in this year’s survey, with more than 70% of respondents naming Scottish Enterprise or Business Gateway as vital organisations within the tech ecosystem.

Respondents also underlined the critical role that Scotland’s academic institutions play in the sector.

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Steve Ewing, director of operations at Informatics Ventures and EIE, said: “Scotland boasts a hotbed of tech and data talent. The combination of academic excellence in data science, a vibrant startup community, excellent government support and additional expertise in areas like biosciences, financial services and marketing analytics created an ideal environment for data-driven businesses to succeed.

“The aspirations to established Edinburgh as the data capital of Europe and a renewed focus on entrepreneurship ensures Edinburgh remains synonymous with company creation and quality deal flow for investors.”

Additional survey findings highlight the funding routes many Scottish startups and scaleups pursue, with almost half stating that they are solely grant or self-funded.

Around 70% of respondents also said they had raised less than £500,000 in equity. Of those that had raised investment, the lions share of funding came from within Scotland and the rest of the UK.

Only 4% of respondents had taken European money, with 3% raising money from US-based sources.

Guy Martin, founding director of Eden Scott, the company behind TalentSpark, said: “Attracting the right investment, developing a customer base and building the relevant skills remain high on the list of priorities for our entrepreneurs.

“The grass might sometimes seem greener elsewhere, but all things considered, the general feeling is that Scotland remains to be one of the best places to start up and grow new companies.”

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Attracting talent to Scotland’s tech sector, and retaining it, was a key focus of survey respondents looking forward. 86% of respondents said they are looking to add more talent to their teams throughout 2019.

Interestingly, nearly one-quarter of the businesses surveyed also have a team where more than half of employees are non-UK citizens; highlighting the global appeal that Scotland has both for those seeking to develop a tech business and for forging a career in the sector.

Martin added: “Scotland is home to a wealth of talent and following outcomes from the likes of Skyscanner, Fanduel and FreeAgent, we’re starting to see that talent recycled through the ecosystem. The experience of people who’ve been there and done it is invaluable in shaping the growth of businesses and entrepreneurial leaders of tomorrow.

“Engage Invest Exploit provides an unrivalled opportunity for Scottish businesses to pitch to an international audience of investors, with significant success. In the past decade, the event has grown exponentially. More than 300 companies having taken part and gone on to secure more than £550 million of seed and following on funding, without which they would be unable to compete in the global fight for talent.”

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Ian Stevenson, CEO of Edinburgh-based cybersecurity startup, Cyan Forensics, echoed Martin’s comments on Scotland’s talent pool, stating: “I’m delighted that Scotland manages to maintain a welcome brand for potential employees. Building a global business is tough but Scotland provides access to a unique skills base, and events like EIE support our ability to attract the right people.”