Scotland’s early-stage companies have seen a continued recovery in international interest with the highest number of overseas investors new to the Scottish market since 2021.
A report which tracks investors making their first investment in a Scottish company, shows a 20% increase in 2024 to 73 from 65 in 2023, 61 in 2022 and 105 in 2021 when there was pent-up demand from the Covid period.
Despite an overall decrease in the number of funding rounds (from 44 to 39), newcomer investors in 2024 maintained their 29% share of all deals, consistent with 2023 figures.
Median deal sizes were notably larger, up 28% from £3.02m in 2023 to £3.86m in 2024, even as overall median deal sizes across all Scottish rounds decreased from £1.2m to £1m.
Scotland’s ‘healing’ companies attracted the most investment from newcomer investors (£68m, with 12 rounds completed).
Notable deals last year included life sciences firm EnteroBiotix’s £27m round, and spacetech company Orbex’s £16.7m funding.
The Scotland Newcomer Investors Report from Young Company Finance also highlighted the vital role of existing Scottish investors in facilitating newcomer participation.
Angel group Equity Gap co-invested in six 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.”
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