The Scottish EDGE funding programme has received a record 305 applications to join its latest round, an increase of 24%.

The 17th round of EDGE in May will see the applicants competing for direct cash funding, along with training and support from several partner organisations.

In addition, female co-founders represented 57% of applications for the current round.

CEO of Scottish EDGE Evelyn McDonald said: “We’re encouraged to see so many applications, particularly after such a challenging time for the business ecosystem in Scotland. With almost half of this round’s applications coming from pre-trading business, we’re seeing that familiar trend of innovation born amidst crisis.

“Job losses and lack of employment have encouraged many to make the entrepreneurial leap, including a disproportionate amount of women, and what we’re also seeing across the applications are companies positioned to address many of the issues that have been thrown up by the pandemic.”

Launched in 2013, Scottish EDGE has awarded over £16 million in grants and loans while supporting over 420 companies.

The social enterprise is supported by the Hunter Foundation, Royal Bank of Scotland, the Scottish Government, and Scottish Enterprise.

Companies who have won grants and loans in previous EDGE rounds include Guy & Beard, which repurposes shipping containers as barbershops in Glasgow and Edinburgh, and Start-up Drinks Lab, which helps drink brands innovate from development to branding or “concept to shelf”.

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This round’s application drive came after a Sir Tom Hunter-funded independent analysis of Scottish EDGE’s past winners by economic research group Ekos found that EDGE-supported businesses have helped generate more than 850 jobs and a gross value added (GVA) of £67.9 million.

The funding competition also generates a return for the public sector of £7.30 to £8.50 in net additional GVA for every £1 of public sector investment.

The report also suggested a strong survival rate for EDGE-winning businesses, with 100% still trading one year after an EDGE win, 85% after three years, and 77% after five years. In eight years of operation and over £16m in grants and loans having been awarded, the report found that there had only been a 6.2% default rate.

Sir Tom Hunter said: “Early stage, high growth businesses will play a vital role in rebuilding our economy and driving employment opportunities. The businesses that come through EDGE grow faster with less risk because EDGE is not just about money, but the embedded support on offer, and I’m delighted the findings of the Ekos report reflect this.

“Scotland’s economic recovery will be entrepreneur-led and SMEs are fundamental to our chances of succeeding. As such I think business and Government must come together to extend and accelerate support for them through the likes of Scottish EDGE.”

Assessment is now underway with this round’s finalists pitching virtually in early May and winners announced later that month. Round 18 of the competition will open for applications in July 2021.