![\"Pure](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2015\/03\/Pure-li-fi-e1459981828916.png\")
One of Scotland\u2019s most ambitious technology firms, pureLiFi, has collapsed into administration after failing to raise further development capital. All 42 staff have been made redundant.<\/p>\n
The 14-year-old firm devised an alternative wireless technology to WiFi and 5G by using light to transmit data.<\/p>\n
It was established in 2012 by\u00a0Professor Harald Haas\u00a0who remained a director of the business which had shifted into manufacturing products based on its own \u2018LiFi\u2019 technology and intellectual property.<\/p>\n
Since 2012 the business is understood to have raised more than \u00a335m in investment from more than a dozen investors, funds and banks.<\/p>\n
After failing to raise new funds, on Monday the directors appointed Kenny Craig and Kevin Mapstone of BTG as joint administrators.<\/p>\n
The Scottish National Investment Bank was among its investors and in a statement it said it had accounted for a loss in Pure Lifi in its recently published accounts.<\/p>\n
Thomas McKay, managing partner of BTG in Scotland and Northern Ireland said: \u201cThe firm had received significant investment from numerous sources over the years, and despite creating products and generating revenue with some groundbreaking proprietary wireless technology, the business simply ran out of money before it could cross into profitability.<\/p>\n
\u201cA strategic shift into manufacturing its own hardware, rather than licensing its globally patented technology to third-party manufacturers, was more costly than initially anticipated.<\/p>\n
\u201cBy the end of Q2 2026 the business had simply run out of cash flow and was seeking sources of additional investment needed to cover losses until the business crossed into profitability.<\/p>\n
\u201cWith no further investment forthcoming, the directors were left with no alternative than to appoint administrators to stop the company\u2019s debts rising, and sadly that has led to the immediate redundancy of all 42 employees at the business.\u00a0<\/p>\n
\u201cOur team is working closely with those affected to help them access the financial entitlements and support available to them, including assistance from Partnership Action for Continuing Employment (PACE) and the Redundancy Payments Service.<\/p>\n
\u201cIn addition to ensuring these employees receive the guidance and advice they need during this process, our priority is to identify any business assets and realise maximum value from their sale, especially the valuable intellectual property assets built up over the years of development, to the benefit of creditors.\u201d<\/p>\n
A spokesperson for the Scottish National Investment Bank said: \u2018The Bank has worked with pureLiFi and other stakeholders to review its options but, unfortunately, market challenges proved too great.<\/p>\n
\u2018Given these issues, the Bank made a provision for the potential failure of the company in its recent Annual Report and Accounts as part of its unrealised losses, meaning the losses we anticipate at the conclusion of the administration process have already been reported.<\/p>\n
\u201cAs Scotland\u2019s development bank, the Bank was established to fill an identified gap in the Scottish funding landscape. <\/p>\n
\u201cRisk is inherent in all investment and we are mandated to take on higher risk than other commercial investors to drive societal impact and growth in the economy. Some failures are inevitable, and our strategy is based on the entire portfolio over the long term.\u201d<\/p>\n
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