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Scottish Scaleups Attract Record Levels of Venture Capital Investment

Graham Turner


Scottish scaleups
More than £258 million has been invested in Scottish scaleups in Q2 2021.

Global venture capital (VC) investors continue to inject record amounts of money into Scottish scaleups, according to a new study.

Research from KPMG, published using data supplied by PitchBook, shows more than £258 million was invested into fast-growing Scottish firms in Q2 of 2021.

This brings the total investment in Scottish scaleups to more than £322 million so far this year.

A strong Covid-19 vaccination programme and greater business confidence in the post-Brexit environment resulted in 60 deals being completed in Q2 2021, up from 20 the previous quarter.

Providers of consumer products and services, as well as healthcare businesses attracted the largest Scottish capital investment deals in, including £36.17 million raised by Glasgow-based culinary tech business, Enough, in a deal led by Nutreco and Olympic Investments.

Edinburgh-based medtech company, Current Health, also attracted more than £31.42 million in a deal led by Northpond Ventures.

Later stage deals continued to attract the most Scottish capital investment, the study found, but interest in earlier stage deals grew as more firms begin to raise Series A and smaller rounds.

Amy Burnett, Senior Manager, KPMG Private Enterprise, said: “Despite the challenges of the pandemic, certain sectors in Scotland, such as healthcare technology, have flourished.

“Scotland has maintained its reputation as an incubator of innovation with a vibrant technology scene, highly skilled workforce, and supportive business environment, and is increasingly attractive to investors.”

Burnett added: “A mix of homegrown talent and overseas firms putting roots down in Scotland permanently is driving investment.

“It’s important we continue to support these firms, with one eye on sectors that appeal to VCs and are helping increase investment during our recovery from Covid-19.”


The rest of the UK also continued to deploy record amounts of money into UK scaleups with more than £6.5bn invested into fast growth UK businesses in Q2 2021, with 708 deals being completed, up 7% on the previous quarter.

Fintech and healthcare tech businesses attracted the largest deals in Q2 21, including $500m (£360m) raised by B2B payments firm SaltPay, $330m-plus (£240m) raised over two rounds by AI-powered drug discovery company Exscientia, $453m (£322m) raised by digital bank Starling Bank, and $130m (£94m) raised by digital health company Huma.

Bina Mehta, Chair of KPMG UK and Head of the firm’s UK Emerging Giants Centre of Excellence said: “The UK has demonstrated resilience and adaptability in attracting overseas investment in a post-Covid, post-Brexit era, which is likely due in part to the maturity of our scaleup ecosystem.

“The power of our disruptive businesses to deliver impact on a global scale is more important than it’s ever been, and our UK innovators are a real success story.

“VC investors, particularly from Asia and the US, continue to be attracted by the strength of our businesses and diversity of our UK scaleup ecosystems across the UK.”

Join the conversation: Fintech Summit 2021

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Following one of the most turbulent periods in modern history, the 2021 Summit will consider the role of financial innovation in socio-economic recovery, featuring talks from a range of industry leaders.

For more details and information on how to register for the 2021 Fintech Summit, please visit:

Graham Turner

Sub Editor

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