A total of £895m was invested into businesses in Scotland by private capital firms in 2021.
This amount represents a strong increase on previous years, with £213m and £271m invested in 2020 and 2019 respectively, according to a new report from the British Private Equity and Venture Capital Association (BVCA).
This investment is powering small and medium-sized businesses across Scotland, with nine in 10 businesses supported here employing 250 or fewer people.
The report used data and case studies gathered from across the BVCA’s membership, finding that of all UK businesses backed by private equity and venture capital in 2021, 7% (88 of 1319) were located in Scotland.
Additionally, technology was the most attractive area for investment in 2021, with 65% (57 of 88) businesses operating in this sector.
Michael Moore, BVCA director general, said: “Private capital firms are alive to the many remarkable opportunities Scotland has to offer – be it the emerging tech start-ups in cities like Edinburgh and Glasgow, the world-leading research-led businesses growing out of the country’s universities or the already-established companies with scope to flourish at a global scale.”
Among the case studies in the report was Edinburgh-based Cyacomb, which uses its technology to sift through harmful online content.
Founded in 2016, it is a spin-out from Edinburgh Napier University and has been supported by Par Equity since early 2021.
Speaking at the launch of the report, Cyacomb chief executive Ian Stevenson said: “Par Equity’s support for Cyacomb has been instrumental in helping us grow - they’ve challenged us to think big with our strategy and build our team, provided the funding needed to further develop our technologies, and helped us navigate the challenges faced by start-ups that begin life as university research projects.
“As a result, we’re now enabling law enforcement agencies right across the globe to quickly stamp out harmful online content and safeguard children – something we’re incredibly proud of.”
Andrew Noble, partner at Par Equity, added: “Not only is Cyacomb a fantastic example of how technology can be used for social good in the world, but it’s also representative of the high-quality tech start-ups found in Edinburgh and across Scotland more broadly.
“As Scotland’s tech ecosystem matures, we’re seeing more and more companies of this stature and quality breakthrough on an international scale.”
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