Scotland's risk capital market shows resilience and growth despite global challenges

22 May 2025 | 2 minute read

Our latest risk capital market report, 'Investing in Ambition, Scotland’s Risk Capital Market: Benchmark Analysis 2024', shows a resilient and growing Scottish market. 

Our latest risk capital market report, 'Investing in Ambition, Scotland’s Risk Capital Market: Benchmark Analysis 2024', shows a resilient and growing Scottish market.

Like the rest of the UK, Scotland is facing persistent global macroeconomic challenges and geopolitical uncertainty. Despite this, Scottish companies raised £704 million in 2024 – a 19% increase on 2023 figures – while the UK experienced a 14% reduction in total investment.

In all parts of the UK, including Scotland, fewer deals were transacted than in the previous year. However, the 13% decline seen in Scotland was significantly less than the 22% drop in the UK as a whole.

Scotland's market strengths

A positive feature of the Scottish market in 2024 was the increase in deals of more than £10 million. This includes the £87 million invested in Build A Rocket Boy  and the £63.5 million put into Resolution Therapeutics.

This isn't the only market strength the report highlighted, though.

Reflecting the outstanding quality of academic research in Scottish universities, 2024 saw 52 spinouts raise £176 million of investment, an almost exact reflection of 2023's figures.

At a UK level, Scotland once again came in just behind the Golden Triangle (London, the east of England, and south east England) in terms of spinout investment value. It also tied with south-east England in the number of spinout deals achieved, placing third behind London and the east of England.

Increases in investment value

Scotland saw increases in investment value from every type of investor in 2024, demonstrating its continued success in attracting investment from a diverse mix of investors.  Venture capital (VC) and private equity (PE) investors participated in deals with a total value of £442 million, making them the top investor type by deal value, an increase of 91% on the figures from 2023.

The total investment value from VC and PE investors also surpassed 2022 levels, which was a record year for investment in Scotland. For VC and PE participation in deals, Scotland placed behind only London and the east of England.

Business angel and angel networks continue to play an active role in the Scottish risk capital market. Only London surpassed Scotland in terms of business angel participation in deals, and the two locations tied when it came to participation by angel networks

An attractive market even in challenging conditions

While many of the trends seen in Scotland in 2024 are encouraging and illustrate the attractiveness of Scottish investment opportunities, the market remains challenging for the whole of the UK.

Changes in investor risk appetite have perpetuated the drift towards later-stage opportunities, with early-stage investment below £10 million and new-to-equity investment continuing to be the most challenging areas for attracting investment. A further area of concern is the low representation of women and other under-represented groups amongst investors, entrepreneurs, and founders.  

Globally and in the UK, the consensus is that without a material change to the exit market and improved liquidity, there is unlikely to be a step change  in overall market performance. However, this shouldn't take away from the fact that there is significant funding available to ambitious and innovative companies operating at the forefront of new technologies and our future industries.