New investors take part in record share of Scottish deals

Scotland pulled in a record 76 time-time investors in 2025, as the country’s early-stage funding market grew and diversified.

The number of newcomer funders rose from 73 in 2024 to 76 in 2025, while the proportion of growth capital rounds that included at least one new investor climbed to 31% (43 of 138 rounds), the highest share since YCF began tracking the data, up from 29% the previous year.

The findings come from Young Company Finance (YCF) Annual Newcomers Report.

Bigger deals, broader base

The number of funding rounds held steady year-on-year, but deal sizes moved in different directions. The median size across all rounds rose from £1 million to £1.615 million, while the median newcomer round fell from £3.86 million to £3 million.

Large raises helped draw in outside capital. Energy storage firm Fidra Energy secured £445 million in equity alongside £594 million in loan facilities, biotech company Trogenix raised £70 million, and Highland Broadband brought in £50 million.

Rhizocore, a life sciences spinout from the University of Edinburgh, attracted five first-time investors in the Scottish market: The First Thirty, The Grosvenor Estate, and Sand River among them, investing alongside Scottish Enterprise and the university’s Old College Capital.

Sovereign capability sectors gain ground

Companies in what YCF terms “feeding, healing and fuelling” sectors still accounted for the bulk of newcomer activity, drawing 67% (29) of new investors. But 2025 saw a sharper turn towards sovereign capability sectors – space, communications, recycling, and advanced manufacturing – which together attracted 25% (19) of newcomers, a marked jump on previous years.

Healthcare remained the single strongest category, with newcomer participation in 14 rounds, up from 12 in 2024, pulling in 21 investors and more than £133 million in funding.

Syndication with local investors rises

Scottish investors increasingly co-invested alongside newcomers. Scottish Enterprise took part in 37% (16) of newcomer rounds, the Scottish National Investment Bank featured in five, and Scottish angel groups took part in 23% (10). University venture funds backed seven rounds.

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University of Edinburgh spinouts were especially prominent, accounting for nine of the 43 newcomer rounds, including Rhizocore and Trogenix.

Alison Grieve, Editor of Young Company Finance Scotland, said the growth in newcomers reflected the market’s expanding reach. “The consistent growth in newcomers – now 76 organisations backing Scottish companies for the first time – shows that Scotland’s growth capital market continues to earn attention well beyond its borders.

“What’s particularly striking this year is the shift towards sovereign capability. Investors are increasingly drawn to Scottish companies in sectors that speak to a broader strategic confidence in what Scotland has to offer. With nearly a third of all rounds now attracting a newcomer, we’re seeing a market that’s not just growing, but genuinely diversifying its base of support.”