A record 76 funders backed Scottish companies with risk capital for the first time in 2025, underlining growing international and domestic confidence in the country’s early-stage ecosystem.
The figures, published in the latest Annual Newcomers Report from Young Company Finance (YCF), show a rise from 73 first-time investors in 2024. More than 31% of Scotland’s growth capital rounds included at least one newcomer participant – 43 out of 138 deals – marking the highest proportion since YCF began tracking the trend and an increase on 29% the previous year.
The full findings will be presented at the YCF Conference 2026, taking place on Thursday, 17 September at Surgeons’ Quarter in Edinburgh.
While the overall number of funding rounds remained broadly in line with 2024, deal values shifted. Median deal size across all rounds rose significantly from £1m to £1.615m. However, newcomer-backed rounds saw a dip in median size, falling from £3.86m to £3m.
Large-scale raises continued to attract fresh capital into Scotland. Among the most notable deals were Fidra Energy, which secured £445m in equity alongside £594m in loan facilities, biotech firm Trogenix with £70m, and Highland Broadband, which raised £50m.
University of Edinburgh spinout Rhizocore stood out for drawing five investors into the Scottish market for the first time, including The First Thirty, The Grosvenor Estate and Sand River. These joined existing backers Scottish Enterprise and Old College Capital.
Although companies focused on ‘feeding, healing and fuelling’ still accounted for more than two-thirds of newcomer participation, the report highlights a growing shift towards sectors linked to sovereign capability.
Industries such as space, communications, recycling and advanced manufacturing attracted 25% of newcomer investors in 2025 – a notable increase on previous years.
Within this, ‘healing’ companies remained the strongest single category, with newcomer participation in 14 rounds, up from 12 in 2024. These deals drew in 21 investors and generated more than £133m in funding.
The report also points to a strengthening culture of co-investment between established Scottish backers and new entrants. Scottish Enterprise participated in 37% of newcomer rounds, while the Scottish National Investment Bank took part in five deals. Scottish angel groups were involved in nearly a quarter of these rounds, and university venture funds featured in seven.
University of Edinburgh spinouts played a prominent role, accounting for nine of the 43 newcomer-backed rounds, including both Rhizocore and Trogenix.
Alison Grieve, Editor of Young Company Finance Scotland, said: “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.”
Dr Andrea Taylor, CEO of Edinburgh Innovations, added: “It’s hugely encouraging to see the University of Edinburgh attracting new investors to Scotland.
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“It’s no surprise. It’s testament to the quality of our companies and the thriving support ecosystem we have built around them, including crucial early-stage funding and ongoing co-investment and support from Old College Capital.
“That support, and the investment it brings, enables innovators like Rhizocore and Trogenix to make a real and lasting social and economic impact on the world.”
The full Newcomers Investors to Scotland Report 2025 will be unveiled at the YCF Conference 2026 on Thursday, 17 September at Surgeons’ Quarter, Edinburgh, with tickets available via Eventbrite.
