Scotland Attracts New Early-Stage Investors Despite Challenging Market Conditions

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YCF report reveals consistent growth in newcomer investors to Scotland, with median deal sizes rising to Ł3.86m

Edinburgh, Monday 21st July 2025 – Scotland’s early-stage investment landscape continues to broaden its international appeal, with 73 investors new to the Scottish market participating in funding rounds during 2024, according to the latest Scotland Newcomer Investors Report from Young Company Finance.

The report, which tracks investors making their first investment in a Scottish company, shows an overall 20 per cent increase from 61 newcomers in 2022 to 65 in 2023, reaching 73 in 2024. Despite an overall decrease in the number of funding rounds (from 44 to 39), newcomer investors maintained their 29 per cent share of all deals, consistent with 2023 figures.

Growing international interest: The 73 newcomer investors in 2024 represent the highest number recorded since 2021 (105), demonstrating Scotland’s expanding reputation as an attractive investment destination.

Larger deal sizes: Median deal sizes for newcomer-backed rounds increased significantly by 28 per cent from Ł3.02m in 2023 to Ł3.86m in 2024, even as overall median deal sizes across all Scottish rounds decreased from Ł1.2m to Ł1m.

Sector strengths: The report broadly categorises companies into those that are feeding, healing, or fuelling the world.  2024 continued to see Scotland’s ‘healing’ companies attract the most investment from newcomer investors (Ł68m, with twelve rounds completed), with ‘feeding’ and ‘fuelling’ jointly raising over Ł61.2m in newcomer-backed rounds.

Notable deals: Major transactions attracting newcomer investors included Build a Rocket Boy’s Ł52m gaming industry raise (Feb 2024), life sciences firm EnteroBiotix’s Ł27m round, and spacetech company Orbex’s Ł16.7m funding.

Existing investor participation: The report also highlights the vital role of existing Scottish investors in facilitating newcomer participation. Angel group Equity Gap co-invested in 6 of the 39 rounds involving newcomer investors, while over a quarter of newcomer rounds saw participation from at least one of Scotland’s angel investor groups.

Alison Grieve, editor of YCF, said:

“The steady rise in newcomer investors signals growing international engagement with Scotland’s early-stage market.  Even in challenging market conditions, we’re seeing larger deals and sustained international interest in Scotland’s known strengths in life sciences and renewable energy, but also in the emerging consumer technologies category, which has not traditionally been a focus for Scottish investors and public funding bodies.”

“The upward trajectory of newcomers suggests Scotland is becoming increasingly integrated into global investment networks, bringing not just capital but international expertise and expansion opportunities to Scottish scale-ups.  Our data indicates that newcomers are targeting more established opportunities, potentially reflecting confidence in Scotland’s maturing startup ecosystem.”

Success Stories

Veterinary diagnostics company MI:RNA exemplified Scotland’s appeal to international investors, attracting five newcomers (NovaQuest, Kyoritsu, VANE, Animal Health Angels, and Companion Fund I) in its Ł3.55m raise, supported by established Scottish investors Equity Gap, Gabriel, and Scottish Enterprise.

Golf wearable technology firm Shot Scope also demonstrated the consumer sector’s international appeal, attracting newcomers Guinness Ventures, Growthdeck, and SideBySide Partnership in a Ł6.7m round backed by Equity Gap, Scottish Enterprise, and Virgin Money.

Further insights into the early-stage investment landscape will be presented at the Young Company Finance Conference 2025 which this year will explore the evolving mix of finance available to early-stage and scaling companies across Scotland.

For more information visit www.ycfscotland.co.uk