The investment is the first of its kind, after the Framework for Business Growth was launched in early 2017. The scheme aims to support 1,200 SMEs across all sectors over the next three years.
Asura Financial Technologies (AFT) provides cost-saving software solutions to stockbrokers and wealth managers, The company’s software provides Customer Relationship Management (CRM) solutions and front, middle and back office functions.
AFT was set up by co-founders Tony Hamill and David Waddington in late 2015. Mr Hamill said:
“This is a huge deal for us. The investment gives us the finance to go ahead and grow the business, particularly the development and sales arms, which is essential as we expand.
“The fact that we were able to demonstrate to a group of investors exactly what we do, and to give them the confidence to buy into it, is a massive thing. Some of our investors have background in the sector and the fact that they can see our potential gives us a lot of confidence going forward.
“David and I saw huge potential in this sector, and were ahead of the game in terms of the current ‘fintech rush’.
“Fintech is such a broad term but within it there’s a huge spectrum of opportunities and we’ve already established strong working relationships with stockbrokers in London and elsewhere.
“It’s a very traditional industry and if you have hundreds of millions under management you can understand that it’s a huge step to change your systems. It is a huge challenge for the sector but also a massive opportunity and we have only scratched the surface.
The investment was secured from Stirling-based ESM Investments, an angel investor group led by founder and chief executive Steven Morris. ESM includes entrepreneurs and former senior tech sector executives who have led companies to successful exits.
Mr Morris said: “From the first meeting we knew that our investor-led approach worked well with Tony and David and we were very quickly able to agree the basis of an investment proposition to work together going forward.
“Our diligence process identified a need to support the team with experienced executives in the space and by strengthening the board we believe that the company is in a stronger position to commence with the commercialisation of the technology.
“The technology is potentially very disruptive and the market is large enough for the company to achieve its goals and aspirations. We are very excited to be part of the company’s scale up plans in the near term.
Harper Macleod assisted AFT with the legal aspects of the investment. Paula Skinner, who heads the firm’s high growth & investment team said: “The whole purpose of the council’s Framework for Business Growth was to direct businesses to the professional advice they need at the right time, to accelerate their growth.
“AFT is a fantastic business which is ideally placed to be a leading light in Scotland’s burgeoning Fintech sector. It is in everyone’s interests for Glasgow, and the rest of the country, to seize this opportunity and scale up, and hopefully this deal will be the first of many similar ones to benefit from the Framework.”