BATTERY SWITCH ON: Fidra takes lion’s share of Scotland’s £757m of investment funding

Edinburgh-based Fidra Energy — the battery energy storage system platform  which secured a mighty £445m funding round — was the most significant equity investment in Scotland in the first three quarters of 2025, according to research.

The company, established in 2024, is backed by EIG, institutional investors in global energy and infrastructure investor, and the National Wealth Fund, the UK’s investor in clean energy and growth industries.

The majority of Fidra’s management team joined from West Burton Energy, based in Retford, which was also backed by EIG, and have moved to offices in Dublin Street. Spurred on by Fidra’s funding, Scotland’s smaller businesses surged in the first three quarters of 2025, outpacing the UK average, according to research from the British Business Bank.

The Bank’s Small Business Finance Markets 2025/26 report found that during the first three quarters of 2025, the investment value of announced equity deals involving smaller businesses in Scotland rose by 70 per cent compared with the same period in 2024, reaching £757m.

The increase was substantial compared with the UK-wide decline of 20 per cent and meant that in 2025 Scotland was on track to exceed the annual equity investment value record set in 2022.

Scotland’s investment growth was driven by a small number of high-value fundraisings. Across the UK, the ten largest deals accounted for 25 per cent of total equity investment in the first three quarters of 2025, the highest share since 2020, underscoring the role of large-scale fundraisings in driving regional investment.

NUMBER OF SCOTTISH DEALS FELL

 While the number of transactions fell slightly by 10 per cent to 133, this was still ahead of the UK’s overall decline of 23 per cent, highlighting Scotland’s resilient dealmaking environment and its position as the leading nation outside London for deal numbers.

The report also noted changes across the business population. In 2025, the number of private sector businesses increased by 2 per cent in Scotland, compared with 4 per cent growth in England and Northern Ireland, and a 12 per cent decline in Wales.

 In late 2023, the British Business Bank launched its £150m Investment Fund for Scotland to increase the availability and supply of finance to all parts of the country.

In just over two years, the fund has committed more than £35m to smaller Scottish businesses through loans ranging from £25,000 to £2m and equity investments up to £5m, including Benbecula Distillery, powerchair manufacturer Freedom One Life, and media production company LS Productions.

 Susan Nightingale, Director, UK Network, Devolved Nations at the British Business Bank, said: “Scotland’s smaller business sector showed remarkable resilience in 2025. Even as overall UK equity investment fell, Scotland experienced a strong rebound, supported by some of the largest fundraisings in recent years.

“The year-on-year rise underscores the strength of Scotland’s investment ecosystem and the ambitions of its entrepreneurs. As interest rates have begun to stabilise and confidence gradually returns to the market, we’re seeing encouraging signs that businesses are continuing to secure the capital they need to scale.