Business Growth Fund, set up by various UK banking groups, has invested £3.9m ($6.2m) in Scotland-based M Squared Lasers.
Duncan Macrae, Edinburgh-based investment director at BGF, said: "M Squared’s laser technology represents a genuine step change. Its products are smaller than others on the market, can be calibrated in minutes rather than hours and can be maintained and upgraded remotely via a web browser. Customer referencing has been overwhelmingly positive and we are very pleased to be backing such an innovative Scottish business and a first class management team."