The collapse of M Squared Lasers has led to renewed focus on the performance of the Scottish National Investment Bank. But context is crucial when it comes to assessing the decision-making behind its investments, writes Scott Wright

The latest revelations about M Squared Lasers, the high-profile Glasgow technology company which went into administration in August, are unlikely to have improved the perception of the Scottish National Investment Bank (SNIB) in the eyes of its many critics.

The Herald revealed on Saturday that M Squared Lasers is estimated by administrators to have collapsed with a total creditor deficiency of £64 million. The deficit includes nearly £37.5m of debt owed to the SNIB and £14.2m due to high street bank Santander, both of which hold a floating charge over the company’s assets. Neither of those creditors can expect to see much of their investments again.

According to a statement of affairs lodged by administrators Alistair McAlinden and Geoff Jacobs of insolvency specialist Interpath at Companies House last week, the book value of assets subject to a floating charge is £20.86m. However, the administrators expect that only £603,000 will be realised from these assets.

For critics of the SNIB, the failure of M Squared Lasers – a once-celebrated player on the Scottish technology scene that was “on a mission to harness the power of light to change the world” – may represent a badly judged investment and a waste of public money. They may point to the losses that the development bank has posted since it launched in November 2020 with a £2 billion war chest to invest in companies engaged in innovation, tackling inequality, and the drive to net zero. Those include an “unrealised”........

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