Indigo 7 Ventures (I7V) will have a focus on start-up businesses specialising in environmental sustainability and energy transition.

The pair have created a multi-million-pound fund which will invest upwards of six-figure sums in a small stable of innovative companies working in the renewables sector.

Doug Duguid was chief executive officer and Michael Buchan chief financial officer of EnerMech, which they founded in Aberdeen in 2008 and developed into a global engineering services company, and which was subsequently acquired in a multi-million-pound deal by The Carlyle Group.

Previously, the pair led pipeline and well interventions specialist PSL Energy Services, and grew it into a global business which was later acquired by Halliburton in a £128 million deal in 2007. 

I7V believe that their extensive experience in sourcing finance, setting up businesses in different geographic locations, arranging international joint venture agreements and navigating tax and regulatory requirements, will differentiate this investment company from traditional funders.

In tandem, I7V will also set up its own renewables services, inspection and repair business in the wind, solar and hydrogen space, with a strategy aimed at establishing an international presence.

Doug Duguid said: “The energy industry is changing and it is clear that over the next few decades we need to move away from traditional hydrocarbon production and manage energy transition into renewable sources.

“Michael and I have built two international businesses and have learned a lot of lessons, good and bad, along that journey. We believe that we can help new and emerging companies to avoid some of the pitfalls that befell us as we transformed those businesses into global players.

“The companies we will invest in will be able to draw on our considerable range of experience in operations, finance, fundraising, back office and HR, and can therefore concentrate on the really important stuff such as R&D and a successful market entry.

“It is often difficult to secure early-stage funding for new businesses, particularly in the current environment when the economy is taking a pounding. We have experienced those difficulties ourselves and therefore we are setting out our stall to be a more flexible type of investor without some of the constraints faced by traditional financiers.”

I7V have already made a number of substantial investments in UK and South African-based businesses which will be revealed in due course.

Mr Duguid added: “We are looking to support companies which are developing new technologies and can offer innovative thinking which will solve emerging problems in the renewables sector.

“Scotland in many respects is a world leader in renewables but it needs people with smart ideas to genuinely drive forward our energy transition, and I7V will play its part by investing in innovative technology companies which can facilitate that change.”