Blow to tech firms as Star centre is shut

FLEDGLING Scottish firms hoping to sell their technology in the US have been dealt a blow with the closure of a key commercialisation office in San Jose, California.

The government-backed Star centre in the heart of Silicon Valley had a high-profile opening during the dotcom boom in September 2000 and aimed to help university spin-out companies to find investors and joint venture partners.

Glasgow University, which helped to spawn firms such as Kymata, the Livingston optoelectronics company, and Actis, the defunct software start-up, opened the Scottish Technology & Research office as part of a programme by the investment and export agency, Scottish Development International (SDI). It was the first UK university to make such a move.

Cathy Garner, the university's director of research and enterprise, said that the changing market conditions had led to the closure. She said: "VCs in the US are following existing investments close to home and we have shut the office, although we still maintain a virtual presence there and can use the facilities of SDI.

"The market in general is very different from where we were two years ago."

The university has 21 commercialisation projects looking for funding but Dr Garner was optimistic that they would find investment in the UK.

She said: "There are a lot of exciting projects, from 3D imaging projects to cancer therapy companies, and despite the funding situation there are still a lot of venture capitalists who want to come along and look at early stage companies."

Lorna Jack, the Americas director of SDI, said: "We are disappointed at Glasgow University's decision to withdraw from the Star centre but understand the circumstances which have led them to this.

"The four Star centres are continuing to operate successfully and have proven very popular with a number of tenants, although they're not operating at full capacity, especially in the wake of 11 September.

"However, demand is picking up, with a number of recent new tenants and 53 companies are signed up for their services.

"We will be embarking shortly on a marketing campaign to encourage more Scottish companies to make use of their facilities."

christine.ferguson@businessam.co.uk