Scots equity investment rises 36% to £690m

Kerry Sharp

New research published on Monday by Scottish Enterprise (SE) reveals that equity investment secured by Scottish businesses increased 36% to £690 million in 2021, up from £509 million in 2020.

Based on Beauhurst data, the research looks at the performance of the Scottish equity investment market and compares with the other nations and regions of the UK.

The 2021 Risk Capital Market report confirms that Scotland’s investment market is amongst the best performing across the nations and regions of the UK.

Scotland is placed in the next best performing quartile outside of the “Golden Triangle” of London, the South-East and East of England, for both deal numbers and amount raised.

Strong growth was seen in the early stages in the under £10 million deal bracket, in addition to an increase in the number of Scottish companies raising larger investment rounds above £10 million.

These include Amphista Therapeutics with £38.1 million, Enough (formerly 3FBio) with £35.9 million and Build a Rocket Boy with £36 million.

Kerry Sharp, Director of Entrepreneurship and Investment at Scottish Enterprise, said: “This latest research is hugely encouraging and shows that the Scottish market continues to grow thanks to a diverse mix of investors who are working collaboratively to channel more funding into innovative young companies.

“Nearly twenty years ago SE embarked on an innovative co-investment approach which aimed to transform Scotland’s risk capital market and cultivate a positive environment for entrepreneurial businesses.

“Since then, we have levered over £2 billion of private investment into Scottish companies and seen the environment go from strength to strength where our most promising and innovative young businesses are supported with the investment and advice they need to start-up, commercialise and scale …

“In terms of our future focus, the importance of our support for early-stage companies, as part of Scotland’s supportive ecosystem, has never been clearer.

“It is critical that Scotland continues to support an investment community working with a variety of investors who are committed to making patient early-stage investment available.

“That, alongside the right advice and support, is fundamental to an entrepreneurial Scotland that can create jobs and deliver innovative solutions for the future.”

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.