The Scottish Co-investment Fund (SCF) is designed to address a finance gap alongside our accredited co-investment partners.

Investment can be made in companies from start-up, early-stage to expanding businesses seeking to develop products and/or markets.

How we can help

Through this fund, we can

• Match accredited co-investment partners up to a maximum of 50% of the total funding package on a commercial basis
• Typically provide from £100,000 up to £2 million, as part of a total deal size typically ranging from £200,000 up to £10 million

This is an equity fund (we subscribe for shares) with deals brought forward to us by our partners. We invest on equal terms with the investment partner.

Enquiries for Scottish Co-Investment Fund support should be made through an accredited co-investment partner.

Ask our financial readiness advisers for help to prepare your investment proposition

To be considered for investment from the Scottish Co-investment Fund your company must:

• Be a commercially viable high-growth potential business
• Have, or be in the process of developing, a significant operational presence in Scotland which is proportionate to the levels of investment being sought
• Fall within the UK Companies Act 2006 definition of a Small to Medium Enterprise (SME)

Find the definition on GOV.UK

• Have a net zero plan in place, be developing a net zero plan or be committed to developing a net zero plan. Scottish Enterprise’s sustainability team can support companies in building a net zero strategy.

Read our 10 steps to achieving net zero emissions in your business

• Be demonstrating or 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). Scottish Enterprise can work with you to review and develop working practices

Take a look at our guide on building business resilience

Restrictions

The fund is not sector-specific but companies operating in certain sectors may be ineligible for investment.

This includes goods, services or activities in well-served markets, 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

Companies operating in these areas with disruptive business models, or technology companies which innovate or create new markets or market engagement, may be considered.

We will not invest in a 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
• Defence, weapons and ammunition

You’ll need to secure funding from an accredited co-investment partner before we can look at co-investing into your company.

The partner will carry out diligence and bring the investment proposition to us detailing deal size, timing and deal structure.

Once investment is completed, our portfolio management team will work alongside your management team and the accredited co-investment partner to maximise the outcomes of the investment for the company, for Scottish Enterprise, and the Scottish economy. Other forms of Scottish Enterprise support such an account management, specialist support (such as from our sustainability team) and access to Scottish Enterprise’s networks in the early stage ecosystem may also be considered on an ongoing basis to help shape the business strategy more broadly.