Scotland is home to numerous startups, with popular cities being Glasgow, Edinburgh and Dundee. The Scottish government actively supports entrepreneurs in their startup journeys through grants and funding programs. Both the Scottish Growth Scheme and the Seed Enterprise Investment Scheme (SEIS) have been designed for startups to attract venture capital investment.
According to Insider UK, 1,553 new tech companies were started in Scotland in 2023. This means that the tech sector makes up 22% of the country’s startups. This includes healthtech, fintech as well as gaming. Organisations such as the Scottish Enterprise and Tech Nation offer guidance and mentoring to startups in their early stages.
What Is Venture Capital?
Venture capital is a form of private equity financing for startups who have the potential for significant growth. It’s an alternative type of financing compared to traditional means such as bank loans. Most startups may not be able to secure bank loans if they are still in their early stages of development. This is where VC funding is beneficial to get off the ground.
Investors provide these startups with the necessary funding in exchange for partial ownership of the business. Not only do startups receive the financial banking that they need, but also the opportunity to receive advice and strategic direction from investors who have a wealth of experience to offer.
10 Scottish VCs Investing In Startups
Let’s take a look at some of the Scottish VCs that are investing in early-stage startups.
1. Scottish Enterprise
Scottish Enterprise invests in early-stage companies who are pursuing finance to fund innovative products or services, or those who want to establish themselves in new markets. They offer gap funding which means that startups should seek as much private sector funding as possible before approaching them.
The company usually provides funding from £100,000 up to £2 million. Total deal sizes range from £200,000 to £10 million.
2. DSW Ventures
DSW Ventures manages one of the UK’s biggest angel networks. Based in Aberdeen, DSW has worked with a range of businesses across Aberdeen, Glasgow and Edinburgh. On behalf of their angel and institutional investors, they offer equity funding of up to £1 million+.
3. Anderson Strathern
Anderon Strathern is a Scottish firm that recognises the need for investors to Scottish businesses. For that reason, they have a team that specialises specifically in venture capital. The firm also offers legal advice to startups if they have already been approached by a venture capitalist.
More from Guides
- Crafting a CV For Tech Startups: A Jobseeker’s Guide
- St Kitts & Nevis’ Golden Passport: Here’s What You Need To Know
- Golden Visas vs. Golden Passports: What’s The Difference?
- Want To Move To Panama With A Golden Visa? Here’s How
- How To Move To Antigua and Barbuda With A Golden Visa
- Mental Health Support Tools Tailored for Remote SME Staff
- 4 Ways to Know What Broadband Speed You Need
- Top 10 Best ISP Proxies
4. Maven Capital Partners
Maven Capital Partners is an established private equity firm that has an extensive track record of supporting the SME sector. They offer capital to startups from £1 million to £6 million. The firm also provides ongoing support and strategic expertise to entrepreneurs as they navigate their startup journey.
5. Scottish Equity Partners
Scottish Equity Partners provides funding to enterprise software and tech startups. Their investment strategy is rooted in their belief that technology has the ability to transform and grow economies. Based in Glasgow, the firm has invested in 180 businesses in the last 20 years.
6. Par Equity
Founded in 2008, Par Equity is an award-winning venture capital firm. They invest in B2B businesses who leverage innovative technology, and have successfully built an Investor Network of more than 200 angel investors. The firm has won awards for Best EIS Investment Manager 2021 and Angel Group Of The Year 2021.
7. Amati Global Investors
Amati Global Investors is a specialist fund management firm based in Edinburgh. The firm provides funding to small to medium sized companies. The companies that they invest in are primarily traded on the Alternative Investment Market (AIM). In 2022, the firm was named a finalist for Best Venture Capitalist Trust Provider at the Investment Life & Moneyfacts Awards.
8. Tricapital
Founded in 2004, Tricapital is a leading Scottish angel syndicate of entrepreneurs, CEOs and business leaders. They work closely with Scottish Enterprise to support startups from the early stages to Series A. The firm leads investments ranging from £250,000 to £2 million.
9. Fuel Ventures
Fuel Ventures’ founder, Mark Pearson, built his own company and grew it to a £55 million exit. They invest between £250,000 and £3 million into early-phase startups. To date, they have funded more than 160 startups with a value of £370 million. As active investors, the firm brings their own experience in order to guide startups.
10. Archangel Investors
Archangel Investors offers investment and expertise for startups in the tech and life sciences industries. Their initial funding amount starts at £250,000 up to £2 million. Operating since 1992, the firm invests around £10 million per year and has 120 investor members.
