May 4, 2012—The investment firm Business Growth Fund (BGF; London) announced this week its funding of £3.85 million of growth capital in the Glasgow-based M Squared Lasers. For its investment, BGF will gain a minority stake in the business and will join the existing board.

The equity investment will fund the research and development program at M Squared as well as its commercial growth, particularly for expanding potential applications for lasers in defense and medical applications. The company plans to use BGF’s investment to develop new market opportunities in remote sensing applications, specifically in developing its Firefly laser for the security and defense, oil and gas, and food and drink industries.

The investment marks the second time BGF has invested in a Scottish technology company, the first being Aberdeen-based STATS Group, an oilfield service sector business, in March of this year.