To ask the Scottish Government what steps it is taking to improve access to early-stage funding for startups, particularly those based outside of Edinburgh and Glasgow.
Numerous Scottish public bodies deliver support and tailored strategic investment into Scottish businesses including Scottish Enterprise, the Scottish National Investment Bank, Highlands and Islands Enterprise, South of Scotland Enterprise, Business Gateway and the Scottish Government’s £42m national Techscaler programme.
The Scottish Government-backed investment funds deployed by these organisations are designed to fill gaps in the supply of capital available to businesses and at the same time crowd in private capital to create a busier ecosystem of investors active in Scotland. Underpinned by Techscaler offering online education, expert mentoring, and a network of 14 hubs across seven regions in Scotland, these funds support tech startups from creation through to scale, ensuring support is accessible and rooted in communities across the country.
Examples of this funding and support include:
- Over £118m capital raised by founders since the inception of Techscaler in 2022 and in November 2024 Techscaler, in partnership with Focused for Business launched the Funding Accelerator programme designed to help Scottish startups secure their first or second equity funding round, with investments ranging from £100k to £1m.
- In 2024/25, Scottish Enterprise made 125 investments totalling £42.5m in early-stage companies, with 52% of these investments in companies located out with Edinburgh and Glasgow.
- South of Scotland Enterprise has supported 391 individuals in the South of Scotland as part of a Pathways pre-start pilot for under-represented groups, providing start-up grants of £1,000 to eligible participants.
- Highlands and Islands Enterprise IMPACT30 programme has supported 301 young entrepreneurs across its region and the Highlands and Islands Enterprise Techscaler Kickstart Grant Scheme offers grants ranging from £5,000 to £10,000 to ambitious tech founders and entrepreneurs in developing their business ideas.
- Through our Ecosystem Fund, we have supported various in-person and remote projects specifically focussed on access to finance, resulting in over 700 individuals growing their investment network.
- Scottish Government has consistently provided support for the Scottish EDGE business competition, including £1.4m in 2024-25, with an aim of identifying and supporting Scotland’s innovative, high growth potential entrepreneurial talent. This recently included a pilot Regional EDGE competition to specifically target support to different regions.
- To support the establishment of a network of entrepreneurial campuses, the Scottish Government allocated Converge with £100k to provide early-stage business microgrants. These microgrants have enabled 55 projects, run by university students and staff, to test their initial business idea. Microgrants were awarded to every university in Scotland to ensure all parts of the country have educational institutions that support entrepreneurial activity.
