Investment in Scottish businesses hits over £85 million in second quarter of the year

Latest figures have revealed Scottish businesses remain attractive to investors as 23 firms shared funding worth over £85 million.

Latest figures have revealed Scottish businesses remain attractive to investors.

Latest figures have revealed Scottish businesses remain attractive to investors as 23 firms shared funding worth over £85 million in the second quarter of 2024.

The latest KPMG Private Enterprise Venture Pulse report has showed that companies from across the region – including Edinburgh, Stirling, Dundee and Glasgow – enjoyed a boost totalling £85.3 million in the past three months.

This means that, in the first half of the year, that 42 firms have shared out £184 million in the form of venture capital (VC) investment.

Standout deals completed during the second three months of the year include £13 million for Edinburgh-based Prothea Technologies, £11.1 million for iGii, based in Stirling, and £10 million for Dundee outfit Outrun TX.

Amy Burnett, KPMG Private Enterprise Senior Manager in Scotland, said:

“We’re seeing continued investment in firms across Scotland, and I hope that we continue to see investment of a similar or larger size for the remainder of 2024.

“Whilst we are not experiencing a big uptick in VC money deployed, I remain hopeful for a calmer second half to the year now we have a new UK government in place. I’m pleased to see continued investment in exciting technologies in Scotland, that are solving real world problems, and I look forward to watching these business grow.”

Graeme Williams, Head of Corporate Finance M&A for Scotland, KPMG UK, said:

“Scotland’s figures continue to be strong in the second quarter and with more stable market conditions, and hopefully investment levels continue to grow during the final two quarters of the year.”

Elsewhere in the UK, the survey showed the first signs of recovery in Q2 24, with the amount raised more than doubling the amount raised in Q1 24. 

After a quiet opening to the year, which saw just £3 billion in VC funding raised by UK businesses — the lowest amount seen in 22 quarters, activity picked up dramatically in Q2 24 with £6.9 billion raised. This was also up year-on-year on the £4.7 billion raised in Q2 23 as investor sentiment started to become more positive, according to the data supplied by Pitchbook.

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Notes to Editors:  

 

Venture Pulse Methodology

KPMG uses PitchBook as the provider of venture data for the Venture Pulse report.  Data is a snapshot of deals recorded as of 8th April 2024. 

PitchBook defines venture capital funds as pools of capital raised for the purpose of investing in the equity of startup companies. In addition to funds raised by traditional venture capital firms, PitchBook also includes funds raised by any institution with the primary intent stated above. Funds identifying as growth-stage vehicles are classified as PE funds and are not included in this report.

A fund’s location is determined by the country in which the fund is domiciled; if that information is not explicitly known, the HQ country of the fund’s general partner is used. Only funds based in the United States that have held their final close are included in the fundraising numbers. The entirety of a fund’s committed capital is attributed to the year of the final close of the fund. Interim close amounts are not recorded in the year of the interim close. Mega-funds are classified as those of $500 million or more in size for the following fund categories: venture and secondaries.

   

About KPMG UK

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