One of the most promising stars of the Scottish technology sector has collapsed just seven months after securing a £25 million funding boost from a US billionaire.
Edinburgh-headquartered energy firm Faraday Grid, which recently parted company with founder Andrew Scobie, has gone into administration with the loss of more than 40 jobs after the firm failed to secure the further funding it needed.
In January the firm announced a £25 million investment from Adam Neumann, co-founder of flexible workspace provider WeWork, the second time he had backed the company.
At the time the company said the funding would support global expansion, as it targeted acquisitions and strategic partnerships in the US, Latin America, Japan, Australia and continental Europe.
Faraday’s technology is designed to help energy grids better cope with the fluctuations in supply that come with renewable sources.
As well as its Edinburgh HQ the firm has a base in Washington, US.
At the time of the £25 million investment, Scobie – who left the company in June – said he was confident that headcount in the Scottish capital can double.
He said: “The demand for us on a global basis is just enormous, much more than we had anticipated at this time, so we’re running perhaps five years ahead of where we had expected to be.”
The company, which has its roots in Australia, established its global headquarters in Edinburgh in 2017 supported by Scottish Development International.
Grant Thornton was appointed as administrator with around 40 employees thought to have been made redundant with a small number kept on to help with a possible sale of the company’s assets.
“The company had previously received investment to fund its research and ultimately, the further development of its Faraday Grid architecture,” it said.
“However, it became apparent that significant further funding would be required to enable its research and development to progress through to its next stage. Unfortunately, the directors were unable to secure the necessary level of investment.”
Latest figures for the firm showed it racked up losses of £1.8 million in the 16 months to 31 December 2017.