TLDR:
- 115 Scottish firms received over £359 million worth of Venture Capital investment in 2023.
- Global VC activity declined in 2023 compared to the record levels of previous years.
A new global report by KPMG revealed that 115 Scottish firms attracted over £359 million worth of Venture Capital (VC) investment in 2023. The Venture Pulse Survey highlighted a decrease in global VC activity during the year, following record-breaking investment levels in 2022 and 2021. In the last quarter of 2023, Scottish innovators secured a total of 45 deals valued at just over £71 million, primarily in Glasgow, Edinburgh, and Dundee. Standout deals included an alternative meat start-up, a neurodynamics company, and a fintech firm.
Graeme Williams, Head of Corporate Finance M&A for Scotland at KPMG UK, noted a slowdown in VC investment in 2023 compared to previous years. Despite this, there remains strong interest in Scottish firms, particularly in emerging technologies like Cleantech, AI, and Life Sciences. Amy Burnett, KPMG Private Enterprise Senior Manager in Scotland, expressed hope for continued success in raising venture capital in the coming year.
In contrast, London attracted the majority of UK VC investment in 2023, although the amount raised was significantly lower than in the previous year. Commenting on these findings, Nicole Lowe, UK Head of KPMG UK’s Emerging Giants practice, emphasized the importance of strong business models and management teams in attracting VC investment.
Overall, the report highlights the evolving landscape of VC investment, with a shift towards prioritizing innovative companies with sustainable growth models and financial stability. Despite the challenges presented by the global economic climate, there remains optimism for the future of VC investment in both Scotland and the UK.
