TLDR:
- Investment in Scottish firms dropped to £359 million in 2023, almost half of the total in 2022.
- 45 deals worth over £71 million were recorded in Q4 2023, with notable investments in various sectors.
A KPMG report revealed that 115 Scottish companies received over £359 million in VC funding in 2023, marking a significant decline from the previous years. The market saw a slowdown compared to the record-breaking levels of 2022 and 2021, with investment mostly concentrated in Glasgow, Edinburgh, and Dundee. Notable deals included investments in alternative meat start-up ENOUGH, neuromotor assessment firm Manus Neurodynamica, and fintech company DirectID. Graeme Williams, head of corporate finance M&A for Scotland at KPMG UK, mentioned that the market has reached a more stable point, with investors exercising caution in their deal-making. Looking ahead, Williams believes that venture capital investment will remain stable despite geopolitical complexities.
Amy Burnett, KPMG private enterprise senior manager in Scotland, highlighted the focus on emerging technologies like Cleantech, AI, and Life Sciences in Scotland. She expressed optimism for 2024 and beyond, emphasizing the importance of sustainable and profitable business models for Scottish founders. Despite a re-leveling in the markets, Burnett believes that the renewed focus on investing in Scottish firms will be beneficial for the country’s talented businesses.
