Welcome to the latest edition of the DIGIT Deal Roundup.

Scotland’s tech industry saw some exciting funding and acquisition wins in October 2024, bolstering firms working in industries such as fintech, wearables and IoT, clean energy, and much, much more.

For a recap on these standout stories, check out our roundup below.

Funding and Investments

Neuranics Secures £800K From Scottish Enterprise

Neuranics has secured an £800,000 grant from Scottish Enterprise (SE) to support a £2.4 million project aimed at transforming how humans interact with machines through innovative wristband technology.

The Glasgow-based quantum sensor developer will use patented magnetic sensors in the wristbands to detect muscle activity and precise gestures, leveraging magnetomyography (MMG) technology and machine learning to interpret these muscle movements.

Initially targeting extended reality applications, the tech firm said the device will eventually enable seamless gesture recognition for immersive digital experiences.

Neuranics CEO Noel McKenna commented: “This funding is a tremendous boost for our project. We are excited to explore how our technology can transform digital interactions and contribute to Scotland’s economic and technological landscape.”

To learn more, click here.

Corporate Modelling Services Clinches £750K

Glasgow-based specialist workforce optimisation software provider Corporate Modelling Services Ltd (CMS) has clinched £750,000 in equity funding from the Investment Fund for Scotland (IFS), managed by Maven Capital Partners and delivered by the British Business Bank.

CMS helps clients to transform their back office operational efficiency and improve the end customer experience through the implementation of a suite of workforce optimisation technologies delivered through its platform, OPX.

It’s been said that the transaction will allow the business to invest further in its platform, enhancing its capabilities and building out further AI functionality into the modular software suite.

“Alex [Allan, the CEO] and the senior team are all highly driven, experienced individuals with a genuine entrepreneurial focus and we look forward to supporting the business as it enters this exciting next phase of growth,” said Craig McGill, investment manager at Maven.

To learn more, click here.

NZTC Awards £500K to Accelerate Electrolyser Tech

The UK electrolyser technology sector has received a boost with the announcement of three winners of the Net Zero Technology Centre’s (NZTC) 2024 electrolyser funding competition.

Launched back in March, the competition was created to find and fund innovative solutions to improve electrolyser efficiency.

Efficient electrolysers are key to cost-effective and large-scale green hydrogen production. Research from phase one of NZTC’s Energy Hubs project identified the need to accelerate the development of next-generation electrolyser technologies to meet future domestic and global hydrogen demand.

The winners of the competition are Clyde Hydrogen Systems, Aqsorption Ltd, and Latent Drive.

Darren Gee, who serves as ETF programme manager at NZTC, said: “Electrolyser technology is an exciting sector right now, and the technological breakthroughs of today will pave the way for the green energy solutions of tomorrow.”

To learn more, click here.

Scots Women-led Companies Set for £4.5M Investment

Investing Women Angels (IWA) has announced it will back a series of investment rounds over the next four months that is set to raise more than £4.5m for four female-founded companies in Scotland.

Marking its 10th anniversary this month, IWA became Scotland’s first all-female business angel syndicate in 2014 when launched by its founder Jackie Waring, FRSE. The group has focused on supporting women to help address the equity investment gap between female-founded companies and those run by men. Over the past decade IWA has backed 26 such businesses helping them leverage over £55m in investment.

Rhona Campbell, chair of IWA, said: “It’s very exciting for us to be marking our 10-year anniversary by announcing that we’ll be supporting a further four female-founded businesses in Scotland.

“I’ve been proud to be involved with Jackie since the inception of IWA which, along with AccelerateHER, has both pioneered and raised the bar for investment in female founders and helped connect them with other investors across the Scottish ecosystem.”

To learn more, click here.

STAC Lines Up “Smart Things” Investment Fund

The Smart Things Accelerator Centre (STAC) has lined up an investment fund for the next generation of “smart things” entrepreneurs in Scotland, and partnered with the National Robotarium to help support these founders.

The STAC Investment Syndicate—a platform to connect investors with ambitious, high-growth potential companies to release market opportunities in innovative technologies—will next make investments of around £150,000 each into a number of companies in STAC’s fifth cohort.

The cohort, STAC 5, commences in early December. Applications for entry to the latest cohort of 15 companies opened on the 14th of October.

To learn more, click here.

Scots Gov Confirms Young Enterprise Scotland Funding

Young Enterprise Scotland has had its funding confirmed by deputy first minister Kate Forbes, enabling it to remain viable throughout the year.

The charity announced that it risked closure after it lost its normal government grant funding last week, which accounts for almost all of its overall income.

If the charity closed, then 31 jobs at the organisations would’ve been at risk, and students would have lost the opportunity to study the SCQF Level 6 in Entrepreneurship.

Forbes reassured: “Although Young Enterprise Scotland was not successful in bidding for entrepreneurial education funding because of the strength of other applications—many of which had not previously received government support—I met the chair and chief executive of Young Enterprise Scotland this morning to update them on the conversations about additional support that had already taken place with officials, and I have approved the requested £285,000 to run into this year the two programmes that were previously funded by the Scottish Government.”

To learn more, click here.

Funding For Green Economy Research at Scots Unis

Researchers from Scottish universities are to lead new projects to accelerate the growth of the UK’s green economy, supported by millions in funding from the UK government.

The University of Glasgow will lead the £5.5 million Responsible Electronics and Circular Technologies Centre (REACT), while the University of Edinburgh will host the £5.6 million Centre for Net-Zero High Density Buildings.

The centres are part of five newly announced across the UK, receiving a portion of UK Research and Innovation’s £25 million Accelerating the Green Economy programme, an initiative aiming to boost research and innovation efforts to help the UK achieve its net-zero target by 2050.

University of Glasgow’s Professor Jeff Kettle, who will lead and coordinate the REACT Hub, said: “The Centre will unite leading researchers to drive the industry’s transition toward a net-zero economy. Its primary focus will be developing solutions to reduce electronic waste, minimise reliance on critical raw materials, and reduce carbon footprints.”

To learn more, click here.

UK Gov Boosts Scotland’s Clean Energy Ambitions

The UK government will make billions of pounds available in funding across the UK, including for Scotland’s clean energy industry.

The energy secretary, Ed Miliband, made the pledge ahead of a visit to Aberdeen with Great British Energy chair Juergen Maier, visiting the city for the first time since Aberdeen was announced as the headquarters for the UK’s new publicly-owned energy company.

Following the visit, the UK government signed a new agreement with the Scottish government to boost Great British Energy’s ambitions supporting clean energy supply chains and infrastructure.

It’s hoped that, by developing partnerships with Scottish public bodies in the clean energy sector—including Crown Estate Scotland, the Enterprise Agencies, and the Scottish National Investment Bank—Great British Energy can deliver quickly and effectively, providing maximum value for money from Scottish projects.

To learn more, click here.

Acquisitions

Trace Data Bought By Datavant

Datavant, a leader in healthcare data connectivity, has acquired Trace Data, the Scotland-founded privacy consultancy that helps organisations secure their sensitive data and comply with regulations like the General Data Protection Regulation (GDPR).

Trace is a privacy boutique with global reach which has built deep relationships with years of experience serving clients in public and private institutions across the UK, Europe, and Canada.

The acquisition has been made to enable Datavant to better support clients and partners in complying with data protection laws like GDPR and aligning with data and AI governance frameworks.

“We are excited to join forces with Datavant and contribute to their mission of connecting the world’s health data,” said Sorcha Lorimer, founder of Trace Data.

“Our shared vision of breaking down data silos and enabling businesses to create strong data privacy systems will accelerate innovation in European healthcare data connectivity, leading to better outcomes for organisations and patients at scale.”

Trace Data chairman Mark Sutherland added: “Joining a truly global company at the forefront of data logistics and privacy protection is a logical step for the team, and I am delighted to see Trace’s mission – as a Scotland-born startup – accelerate with the acquisition by Datavant.”

iomart Acquires Atech Support

Glasgow-based cloud computing firm iomart has acquired Kookaburra Topco, the holding company of Atech Support, for £57 million.

This acquisition, funded through existing cash and an expanded £125m revolving credit facility, is set to bolster iomart’s offerings as a Microsoft Solutions partner. Atech’s 150-strong team, with 128 Microsoft certifications, will join iomart as part of its strategic goal to enhance cloud services for mid-sized UK enterprises.

“Our acquisition of Atech marks a significant milestone for iomart in our ‘Bigger, Better, Bolder’ strategy,” said Lucy Dimes, CEO of iomart Group.

“Atech was a strategic target for us, and creates a powerful combination of Microsoft credentials, managed security services, high quality referenceable customer deployments, leading-edge technology and global delivery capability.”

To learn more, click here.

Rovtech Bought By Ventex

Ventex, the Scottish venture capital firm based in Aberdeen, has acquired Rovtech, a Cumbria-based manufacturing business, to accelerate its nuclear energy expansion.

Rovtech marks the third business to join Ventex, which is geared on repurposing companies, technologies, skills, and experience in the supply chain to support renewable energy markets and goals.

“Rovtech exemplifies a mature business that is unaware of its excellence and scale potential – it is a hidden gem, perfectly placed to support the energy transition and net zero supply chain,” said Stuart McLeod, managing partner at Ventex.

To learn more, click here.

D2Zero Acquires Kelton

Decarbonisation and clean energy solutions group D2Zero has acquired flow measurement consultancy Kelton.

Aberdeen-based Kelton’s proprietary technology and software enabled real-time monitoring and data gathering to provide more informed asset performance and compliance analysis.

D2Zero hopes its acquisition of Kelton will improve its digital capabilities and further accelerate its momentum in the energy transition industry.

“We are proud to announce that Kelton is now part of D2Zero,” managing director of Kelton, Iain Pirie, said.

“Over the past 33 years, our team has developed differentiated technology and expertise, and we are excited at the possibilities for the business as part of a Group with such a clear focus on accelerating the energy transition.”

To learn more, click here.