Scottish Enterprise investment funds

We offer two equity funds designed to support Scottish commercially viable, innovative, high-growth companies with scaling potential.

Scottish Co-investment Fund

The Scottish Co-investment Fund (SCF) provides funding alongside sophisticated and experienced private sector investors that we've approved as an accredited co-investment partner.

We co-invest into start-up, early stage and expanding businesses alongside these accredited partners. Our accredited partners make the investment decision, source deals that meet our criteria, carry out diligence and negotiate the investment terms.

If there's a funding gap, the accredited partner can call upon us to co-invest alongside them on commercial and equal terms.

Scottish Venture Fund

The Scottish Venture Fund (SVF) provides funding alongside a sophisticated and experienced lead private sector investor into companies that meet our criteria.

It operates by co-investing into start-up, early stage and expanding businesses alongside a range of private sector investors. The fund is private sector investor led, but we might be involved in negotiating the terms of the investment and undertaking any additional diligence we think appropriate.

The investment decision is ultimately retained and made by Scottish Enterprise.

We operate as a gap funder and to be eligible for investment from the Scottish Venture Fund, in addition to meeting our criteria, you must be able to identify which other funding sources you’ve explored.

For both funds:

• We provide equity investment (we typically subscribe for shares)
• We invest alongside sophisticated, experienced private sector investors and where there is an identified lead investor that we can work alongside
• We apply the same investment criteria
• We typically invest between £100,000 and £2 million in deal sizes that are typically up to £10 million
• We can invest up to 50% of the total funding package on a fully commercial basis
• Investment will usually be limited to a cumulative maximum of £2 million for each company, deployed over a period of up to five years and across no more than three funding rounds
• If, after this, further investment is needed, it will typically be limited to our pre-emption rights
• Your company must have a minimum 12-month cash runway post investment
• The fund best suited to your needs will be determined by the type of investor that you would like to invest into your company

To be eligible for investment from either fund your company must:

• Align with one of our three missions: Scaling innovation, energy transition or boosting capital investment
• Show clear ambition, vision, and strategy to scale from a Scottish base - delivering meaningful and measurable economic impact within Scotland, creating high-value employment, strengthening supply chains and clusters, and contributing to Scotland’s long-term productivity and competitive positioning, proportionate to the levels of investment sought
• Be a commercially viable, high-growth business with scaling potential. You'll have achieved jobs or turnover growth of 72% or more over the past three years, having had at least 10 jobs in Scotland at the start of that three-year period, or
• Have at least 10 employees in Scotland and a credible plan to grow jobs or turnover by 72% or more over three years from initial Scottish Enterprise investment, or
• Be an earlier-stage businesses, and be Scotland-led with fewer than 10 employees and show a credible pathway to £5 million turnover or £10 million of investment within eight years of initial Scottish Enterprise investment
• Offer highly innovative products, services, or technologies, evidenced by limited market displacement risk and high barriers to replication demonstrating clear differentiation, competitive advantage, and substantial international market opportunities capable of supporting long-term growth
• Have a leadership team which possesses ambition and strategic intent to deliver growth, a clear understanding of commercial, operational, and strategic requirements for scaling, and a willingness to bring in additional leadership or specialist expertise as needed and has, or is committed to establishing, robust governance appropriate to its stage of growth
• Fall within the UK Companies Act 2006 definition of a Small to Medium Enterprise (SME) - read the definition of an SME on GOV.UKopens in a new window 
• Have a net zero plan in place, be developing a net zero plan or be committed to developing a net zero plan - we can support companies to put a net zero strategy in place that meets their business needs - read our 10 steps to achieve net zero emissions
• Show or be working towards the seven key principles of fair work (employee voice, security, respect, opportunity, fulfilment, flexible and family working, and the rejection of fire and rehire practices) - we can work with you to review and develop these working practices - read our guide on building business resilience  

Fund Restrictions

If your company operates in certain sectors or provides goods, services or activities in well-served markets, you may be ineligible for investment. For example:

• Banking, insurance, sub-prime lending, or other activity where there is onward lending or credit risk including hire purchase and dealing in land, derivatives, or commodities
• Retail, events, restaurants, hotels, pubs, and clubs
• Social and personal services
• Professional services
• Motor vehicles
• Real estate and property development

If your company operates in these areas, you might still be considered for investment if you have a disruptive business model, or you have a technology company which innovates or creates new growth markets or market engagement.

We don't invest in companies in distress or any company involved in any activity that could have a negative impact on our organisation's reputation or ethical standards. Such activities include, but are not restricted to, the following:

• Activities with an adverse impact on human rights or the environment
• Gambling
• Tobacco
• Adult entertainment
• Activities that are contrary to Scottish Government policy