A record 76 new funders backed Scottish companies with risk capital last year, up from 73 in 2024, as the ecosystem continues to support young growth companies.
The trend emerges in the latest Annual Newcomers Report from Young Company Finance, which tracks the financing of early-stage companies in Scotland.
More than 31% of growth capital rounds attracted at least one newcomer participant (43 out of 138 funding rounds), the highest proportion since YCF began its tracking, and up from 29% in 2024.
The full report will be presented at the YCF Conference on 17 September at Surgeons’ Quarter, Edinburgh.
Large individual raises continued to draw in new sources of capital, with notable deals including energy storage firm Fidra Energy (£445m equity plus £594m in loan facilities), biotech company Trogenix (£70m) and Highland Broadband (£50m).
Life sciences company Rhizocore, a University of Edinburgh spinout, attracted five investors to the Scottish risk capital market for the first time including The First Thirty, The Grosvenor Estate and Sand River, investing alongside Scottish Enterprise and the University of Edinburgh’s Old College Capital.
Existing Scottish investors continued to co-invest alongside newcomers at a growing rate. Scottish Enterprise took part in 37% (16) of newcomer rounds, the Scottish National Investment Bank in five, and Scottish angel groups in 23% (10). University venture funds participated in seven rounds.
University of Edinburgh spinouts featured prominently in this year’s figures, with nine of the 43 newcomer rounds, including Rhizocore and biotech company Trogenix, going into companies emerging from the university.
Alison Grieve, editor of Young Company Finance Scotland, said: “The consistent growth in newcomers– now 76 organisations backing Scottish companies for the first time – shows that Scotland’s growth capital market continues to earn attention well beyond its borders.
“What’s particularly striking this year is the shift towards sovereign capability. Investors are increasingly drawn to Scottish companies in sectors that speak to a broader strategic confidence in what Scotland has to offer.
“With nearly a third of all rounds now attracting a newcomer, we’re seeing a market that’s not just growing, but genuinely diversifying its base of support.”
Dr Andrea Taylor, CEO of Edinburgh Innovations, the University of Edinburgh’s commercialisation service, said: “It’s hugely encouraging to see the University of Edinburgh attracting new investors to Scotland.
“And it’s no surprise. It’s testament to the quality of our companies and the thriving support ecosystem we have built around them, including crucial early-stage funding and ongoing co-investment and support from OCC.
“That support, and the investment it brings, enables innovators like Rhizocore and Trogenix to make a real and lasting social and economic impact on the world.”
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