Our investment strategy
Learn about our approach to supporting Scotland’s early-stage investment market, and how our strategy is evolving in response to changing market conditions. Find out about how we'll work with investment partners on opportunities that'll deliver transformational growth for Scotland.
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Our new strategy
For more than 20 years, we've been a committed and trusted partner in Scotland’s early-stage investment market. Through our co investment model, we've partnered with private investors to share risk and reward, helping to build a strong, visible ecosystem that supports ambitious and innovative companies to achieve their high growth potential.
Our investment strategy sets out how we’re evolving our approach in response to changing market conditions. It sharpens our focus to deploy resources and capital where they can make the greatest difference.
This means increasing our focus on investments into companies that show the ambition, leadership capability and strategic intent to truly scale their businesses in Scotland – particularly in industries where Scotland has a global competitive advantage. We’re committed to increasing the number of scale-up companies over the next decade.
There remains a clear challenge in supporting more companies to grow and scale in Scotland, creating substantial employment, revenues and long-term economic value. Alongside this, we'll continue to be a responsible steward of public capital by optimising income generation from our existing investment portfolio. This will support the recycling of returns into new mission-aligned opportunities, and enhancing the long-term sustainability of our investment model.
We'll continue to work constructively with our investment partners and to support existing investee companies, while increasingly prioritising opportunities with the strongest potential to deliver transformational growth for Scotland – and stronger, more consistent income generation for reinvestment.
What's changing?
At the heart of our strategy is a shift in how we invest. We'll:
- Be more selective – concentrating on fewer investments and focusing resources on the opportunities most likely to deliver scale and economic impact
- Back scaling ambition in Scotland – prioritising businesses with credible plans to grow jobs, capability and value, especially in industries where Scotland can lead globally
- Invest alongside the right co-investors – with experienced private investors who can actively support company growth
- Work with the market - use public investment to crowd in private capital, helping to address funding gaps and supporting a healthy investment eco-system
- Drive long-term value – strengthening our focus on financial returns to enable reinvestment into future companies
Co-investment will remain central to our approach. We'll continue to act as a gap funder, using public capital to unlock larger flows of private investment and attracting both domestic and international investors into Scotland.
We'll only co-invest with experienced, sophisticated investors who show the capability, independence, and professionalism needed to support scaling companies that can deliver economic impact for Scotland.
As a public‑sector investor, we place a premium on responsible stewardship, alignment of interests and the ability to add value beyond the provision of capital. We'll only co-invest alongside investors who are able and willing to play an active role in company governance, follow on funding strategies and portfolio stewardship.
Our priority areas
We'll focus investment on companies operating in the industries where Scotland has the potential to lead globally. This includes industries within our three core mission areas:
- Energy transition
- Scaling innovation (for example, life sciences, space, enabling technologies, fintech/cyber, data/digital/AI)
- Boosting capital investment (including high-value manufacturing)
Investment criteria
To be considered for investment, your company must intend to scale operations, employment, capability, and value creation in Scotland. This includes:
- Having at least ten employees in Scotland and a credible plan to grow jobs or turnover by 72% or more over three years, or
- For earlier-stage businesses, being Scotland-led with fewer than ten employees and demonstrating a credible pathway to £5 million turnover or £10 million of investment within eight years.
In all cases, your company must present a clear and deliverable plan for growth in both employment and revenues in Scotland, with the scale of impact commensurate with the investment sought.
Additional factors that will be considered include the ability to strengthen Scotland’s supply chains through increased local procurement, capability building, or specialist expertise development. Your company should also contribute to the growth of clusters in Scotland’s mission-aligned industries of the future and support the wider competitiveness of Scotland’s economy through innovation, exports, international market development, and leadership excellence.
Our responsible investment framework
We're committed to growing the Scottish economy for the benefit of all.
This framework sets out how we integrate environmental, social, and governance considerations into our commercial investment activities.
Our co-investment funds
If your business has scaling potential and meets our criteria, we can also offer co-investment funding. This is where we co-invest into your business alongside a sophisticated and experienced private investor.
Scottish Co-Investment Fund
Are you a Scottish start-up, early-stage or growing company with scaling potential seeking investment to develop products and/or enter new markets? We can match fund accredited investment partners to support your growth plans.
Scottish Venture Fund
Seeking funding to develop products and/or enter new markets? This flexible equity gap fund invests alongside private sector investors, offering equity funding from £100,000 up to £2 million.
Loan funding
We can also provide loan funding. If you're a growth-focused Scottish company, the Scottish Loan Scheme can provide loan funding of £250,000 to £2 million.
Loans can be used for a variety of purposes, including:
- Working capital
- Capital expenditure
- Growth funding
- International expansion
- Marketing investment
Get in touch to access support
If you’d like help finding investors, deciding the right finance option for you, preparing for and securing funding, or understanding Scotland’s risk finance market, get in touch today.
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