Investing in Ambition, Scotland’s Risk Capital Market: Benchmark Analysis 2024

This report provides a detailed analysis of the risk capital market in Scotland for the calendar year 2024. The report is the latest in a series that tracks the flow of equity investment into Scottish headquartered companies, comparing Scotland’s performance to that of the other nations and regions of the UK. This evidence base is used to inform Scottish Enterprise’s interventions to support ambitious, early-stage, high growth companies, which in turn support the continued growth of the Scottish risk capital market. 

The analysis is based on Beauhurst data and deals tracked through its platform. The report seeks to capture information on as many deals as possible, not just announced deals, recognising that there will still be undisclosed deals and incomplete information. This means that the totals reported in earlier years will change as deals not previously disclosed are added to the database. 

Despite persisting global macroeconomic challenges and geopolitical uncertainty, the Scottish risk capital market showed resilience and growth in 2024. Scottish companies raised £704 million (up 19% from 2023), compared with a 14% reduction in the total value raised in the UK overall. The number of deals transacted in Scotland fell to 318, a decline of 13%, in line with the wider UK trend which saw the number of UK deals fall by 22%.

Several substantial deals took place in Scotland in 2024, including £87 million invested into Build A Rocket Boy and £63.5 million into Resolution Therapeutics. These deals contributed to the 90% increase in investment above £10 million in Scotland. The number of deals above £10 million also increased by 70%.

There are several other Scottish market strengths that stand out. This includes the ability of our university spinouts to attract significant investment, and the diverse mix of investor types attracted to the Scottish risk capital market (including international investors).

However, in common with the rest of the UK, the Scottish market is not without challenges. Changes in investor risk appetite have perpetuated the drift towards later stage opportunities, with investment and deals below £10 million and new-to-equity investment continuing to be particularly difficult areas. A further point of concern is the low representation of women and other under-represented groups among investors, entrepreneurs, and founders.

The report does not make any recommendations.