TLDR:
115 Scottish firms shared £359 million of venture capital during 2023. The figure is down significantly on previous years, with a marked decline in global VC activity during the year. Deals were mainly centered around firms in Glasgow, Edinburgh, and Dundee.
115 Scottish firms received more than £359m worth of venture capital (VC) investment in 2023. This is a decrease from the record investment levels seen in 2022 and 2021.
During the last quarter of 2023, a total of 45 deals were recorded for Scottish businesses, with a value of just over £71m. The deals were mainly focused on firms in three areas: Glasgow, Edinburgh, and Dundee.
Standout deals during the 12-month period included:
- Alternative meat start-up ENOUGH raising £31m in equity.
- Manus Neurodynamica closing a £2.6m funding round for its NeuroMotor Pen.
- Fintech firm DirectID attracting a £7.69m minority investment from IKEA’s Ingka Investments arm.
The decline in global VC activity during the year has led to a more cautious approach from investors. Despite this, there is still strong interest in Scottish firms, with a focus on new emerging technologies such as cleantech, AI, and life sciences.
London attracted the majority share of UK VC investment in 2023, with around £10.7bn raised across 1,495 deals. However, this was significantly down from the previous year.
UK businesses looking to raise funds will need strong business models and management teams in order to attract VC investment in the current challenging environment.
