The report, which tracks investors making their first investment in a Scottish company, shows an overall 20% increase from 61 newcomers in 2022 to 65 in 2023, reaching 73 in 2024. Despite an overall decrease in the number of funding rounds (from 44 to 39), newcomer investors maintained their 29% share of all deals, consistent with 2023 figures.

• Growing international interest: the 73 newcomer investors in 2024 represent the highest number recorded since 2021 (105), demonstrating Scotland's expanding reputation as an attractive investment destination
• Larger deal sizes: median deal sizes for newcomer-backed rounds increased significantly by 28% from £3.02 million in 2023 to £3.86 million in 2024, even as overall median deal sizes across all Scottish rounds decreased from £1.2 million to £1 million
• Sector strengths: the report broadly categorises companies into those that are feeding, healing, or fuelling the world. 2024 continued to see Scotland’s ‘healing’ companies attract the most investment from newcomer investors (£68 million, with twelve rounds completed), with ‘feeding’ and ‘fuelling’ jointly raising over £61.2 million in newcomer-backed rounds
• Notable deals: major transactions attracting newcomer investors included Build a Rocket Boy's £52 million gaming industry raise (Feb 2024), life sciences firm EnteroBiotix's £27m round, and spacetech company Orbex's £16.7 million funding.
• Existing investor participation: the report also highlights the vital role of existing Scottish investors in facilitating newcomer participation. Angel group Equity Gap co-invested in 6 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.”

Success stories

Veterinary diagnostics company MI:RNA exemplified Scotland's appeal to international investors, attracting five newcomers (NovaQuest, Kyoritsu, VANE, Animal Health Angels, and Companion Fund I) in its £3.55 million raise, supported by established Scottish investors Equity Gap, Gabriel, and Scottish Enterprise.

Golf wearable technology firm Shot Scope also demonstrated the consumer sector's international appeal, attracting newcomers Guinness Ventures, Growthdeck, and SideBySide Partnership in a £6.7 million round backed by Equity Gap, Scottish Enterprise, and Virgin Money.

Further insights into the early-stage investment landscape will be presented at the Young Company Finance Conference 2025 which this year will explore the evolving mix of finance available to early-stage and scaling companies across Scotland.

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