Dalgety Bay company PowerPhotonic has received a £2 million investment from Archangels, the business angel syndicate, and the Scottish Investment Bank.
The cash is from a total of £3.3m in the latest round of funding for three growing Scottish businesses.
PowerPhotonic designs, manufactures and supplies high-value optics that manipulate the light from lasers for customers in sectors from defence to the medicine.
The additional funding will be used to increase product development, manufacturing and sales and marketing capabilities.
The other recipients are Bloxx Ltd of Livingston, whose web and email filtering software is used by schools, colleges and companies across Europe and the US; and Administrate of Edinburgh, which provides online training management software that automates workflow to deliver education.
John Waddell, chief executive of Archangels, said: “Each of these businesses is world class in its own field.
“They are all excellent examples of the types of Scottish enterprises that Archangels is uniquely positioned to support.
“They simply couldn’t have developed to the stage that they have today without Archangels, and we’re proud of what we have achieved together with all three businesses.”
Dr Roy McBride, chief executive of Power Photonic, said: “We’ve already proved that we can produce the highest quality optics for laser applications in a number of sectors here in Europe, in the US and in Asia Pacific.
“This new investment in the business will accelerate our growth plans, allowing us to take on additional staff to expand our product development, manufacturing and sales activities.”