A record 76 funders backed Scottish companies with risk capital for the first time in 2025, up from 73 in 2024, according to the latest Annual Newcomers Report from Young Company Finance (YCF).
More than 31 per cent of Scotland’s growth capital rounds attracted at least one newcomer participant (43 out of 138 funding rounds), the highest proportion since YCF began tracking the trend, and up from 29 per cent in 2024.
While overall round numbers stayed broadly consistent with 2024, the median deal size across all rounds rose from £1m to £1.615m. Median deal size for newcomer rounds fell from £3.86m to £3m.
Large individual raises continued to draw in new sources of capital, with notable deals including energy storage firm Fidra Energy (£445m equity plus £594m in loan facilities), biotech company Trogenix (£70m) and Highland Broadband (£50m).
Life sciences company Rhizocore, a University of Edinburgh spinout, attracted five investors to the Scottish risk capital market for the first time including The First Thirty, The Grosvenor Estate and Sand River, investing alongside Scottish Enterprise and the University of Edinburgh’s Old College Capital.
While ‘feeding, healing and fuelling’ companies still accounted for over 67 per cent (29) of newcomer participants, 2025 saw a marked rise in investment into sovereign capability sectors including space, communications, recycling and advanced manufacturing, which together attracted 25 per cent (19) of all newcomers, up sharply from previous years.
‘Healing’ companies remained the strongest single category, with newcomer participation in 14 rounds (up from 12 in 2024), attracting 21 investors and over £133m in funding.
Growing role of syndication
Existing Scottish investors continued to co-invest alongside newcomers at a growing rate. Scottish Enterprise took part in 37 per cent (16) of newcomer rounds, the Scottish National Investment Bank in five, and Scottish angel groups in 23 per cent (10). University venture funds participated in seven rounds.
University of Edinburgh spinouts featured prominently in this year’s figures, with nine of the 43 newcomer rounds, including Rhizocore and biotech company Trogenix, going into companies emerging from the university.
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, the University of Edinburgh’s commercialisation service, said: “It’s hugely encouraging to see the University of Edinburgh attracting new investors to Scotland. And 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 OCC.
“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 report will be presented at the YCF Conference 2026 on Thursday, 17th September at Surgeons’ Quarter, Edinburgh.