Welcome to the latest edition of the DIGIT Deal Roundup.

From energy transition AI firm Continuum Industries securing over £8 million in new funding, to Orkney receiving £15 million from the UK Government to deploy trial electric ferry boats, you’ll find the standout stories from September below.

Let’s take a look at them.

Funding and Investments

SNIB Commits Over £445M in Investment Since Founding

The Scottish National Investment Bank (SNIB) has released its second full year accounts, detailing its investment history since it was established little over two years ago.

Since its establishment, the Bank has committed over £445 million in long-term strategic investment. A further £703m has been attracted in from other sources, ensuring the Scottish economy has benefitted from well over £1.3bn of support.

The Bank’s activity has spanned across a range of businesses and projects, including net-zero, biotechnology, broadband connectivity, and improving communities or harnessing innovation.

“I believe we can become one of the most respected impact investors in the industry, generating social, environmental and economic returns for the people of Scotland. I look forward to working with the team and our many stakeholders, on delivering the Bank’s missions on behalf of the people of Scotland,” said Al Denholm, CEO.

Read more here.

Continuum Industries Secures £8M+ in New Funding

Continuum Industries, the Edinburgh-based company behind Optioneer, an bAI-powered infrastructure development platform, has announced that it’s secured $10 million (£8.2m) in new funding.

The latest funding round supporting the firm and its platform was led by Singular, the venture capital company, with participation from previous investors such as Techstart Ventures, Credo, and Playfair, as well as angels including executives from SSE, Skyscanner, and UiPath.

The new batch of investment, which now brings the company’s total funding to $15.5m (£12.7m), is set to support Continuum Industries’ continued growth as it aims to double employee headcount and expand into new territories over the next 12 months.

“Having set out to raise a round in challenging economic conditions, we’re pleased to have found new investors in the shape of Singular – alongside our previous backers,” said Grzegorz Marecki, the firm’s co-founder and CEO.

Discover more here.

Kelvin Capital Closed H1 With Record Number of Investment

Kelvin Capital, the Glasgow-based investment syndicate, has closed the first half of 2023 having concluded record investment totalling £7.8 million into its portfolio of Scottish technology companies.

The first six months of the year saw funding rounds, with co-investment from Scottish Enterprise, completed for five of its portfolio companies: the agritechs Dyneval, WellFish Diagnostics, and Peacock Technology, as well as behavioural science and technology firm KultraLab and eBike motor designer and manufacturer FreeFlow Technologies.

“The quality of Scottish-based businesses working in disruptive or pioneering technology continues to increase and we are thrilled to be backing them at the forefront of their global ambitions and journeys,” said Stuart McKee, Kelvin Capital’s chair.

Learn more here.

Stellar Omada Receives £4.5M From Investment Firm BGF

Investment firm BGF has completed a £4.5 million investment in Edinburgh-headquartered technology services company Stellar Omada.

Founded in 2018 by CEO Colin Frame, Stellar Omada specialises in digital transformation, testing services, and programme delivery for clients in the financial services sector.

The business has experienced rapid growth to date, delivering £16.3m revenue in 2022 up from £9.1m in 2021, with clients in the banking, pensions, and investment management sectors, including some of the UK’s largest banks and pension providers.

Colin Frame, CEO of Stellar Omada, said: “We are delighted to be partnering with BGF for our next phase of growth. We have ambitious plans for the future, focusing on continuing to drive growth with both existing and new customers. This investment will play a vital part in helping us achieving those goals.”

Read more here.

Mocean Energy Nets £3.2M in EU Investment

Mocean Energy, an Edinburgh-based wave energy company, has received £3.2m in funding from the EU to create and launch a 250kW wave machine in Orkney.

Named Blue Horizon 250, the device is set to be manufactured in Scotland and will be deployed in a grid-connected berth at the European Marine Energy Centre in Orkney as early as 2025.

The Edinburgh firm has been awarded £3.2m in Phase 3 of EuropeWave, a pre-commercial procurement programme, funded through the EU and managed in collaboration with Wave Energy Scotland, the Basque Energy Agency, and Ocean Energy Europe.

“We have already demonstrated our technology successfully at small scale and this programme will allow us to build a significantly larger machine based on our proven hinged raft design, and incorporate our novel direct drive generator,” said Cameron McNatt, the co-founder and managing director of Mocean Energy.

Discover more here.

Krucial Lands £3M in Funding to Support Expansion

Krucial, the Scottish scaleup which utilises space technology to provide digital solutions, has landed a funding boost to the tune of $3.7 million (£3m), as it continues its expansion into international markets.

The latest funding round into the scaleup — formerly known as R3-IoT — was led by existing investor Scottish National Investment Bank. Scottish Enterprise, the University of Strathclyde, and AzurX, the Dubai-based space and tech investor, joined SNIB, with Scottish law firm Burness Paull advising on the investment.

The total amount raised by Krucial now stands at more than $7.5 million (£6m), with the new batch of financing set to be used to accelerate growth in the firm’s core markets, which include energy, aquaculture, agriculture, and rail, both in the UK and internationally.

“This funding is a clear vote of confidence in Krucial’s cutting-edge solution – especially given wider macroeconomic conditions,” said Allan Cannon, one half of the firm’s founding team, alongside Kevin Quillien.

Learn more here.

Strathclyde Spinout Microplate Dx Wins £2.5M

Glasgow diagnostics spinout Microplate Dx has closed a £2.5m seed funding round to develop its point-of-care diagnostic platform which can confirm the presence of bacteria and guide a patient’s doctor to effective treatment by identifying effective antibiotics to use and which ones to avoid.

Investors in this funding round include existing investors Deepbridge Capital LLP and the University of Strathclyde, in addition to new investors Scottish Enterprise, impact investor SIS Ventures, and Boston-based life sciences investor Thairm Bio, in line with the company’s plans for US market entry.

Professor Sir Jim McDonald, principal and vice-chancellor of the University of Strathclyde, said: “Microplate Dx is a hugely innovative University spinout that is on an incredibly exciting journey to develop cutting edge technology that has the potential to transform diagnostic techniques and positively impact people’s health and well-being.

Read more here.

Neuranics Raises £1.9M in Funding Led by Par Equity

Neuranics, a startup specialising in magnetic sensor innovation, has raised £1.9m in pre-seed funding led by Par Equity, with participation from GU Holdings Ltd, Old College Capital, and Creator Fund. The startup, founded in 2021, is a joint spinout from the University of Glasgow and the University of Edinburgh.

Neuranics develops magnetic sensors integrated with semiconductor technology for health, fitness, and metaverse applications. The startup’s patented technology uses scalable spintronics sensors, powered by semiconductors, to detect tiny magnetic signals from organs of the body.

“Our breakthrough technology will enable much better sensor resolution for human-machine interface, will have huge benefits for health and fitness devices, and also controllers in the metaverse,” said CEO Noel McKenna.

Discover more here.

Trickle Secures £1M Investment to Continue Growth Plans

Scottish workplace productivity startup Trickle has secured a £1m investment led by Equity Gap, with NoBa Capital, a London-based VC firm that invests in tech-enabled businesses shaping the Future of Work, and Scottish Enterprise also participating in the round.

Trickle, led by founder and CEO Paul Reid, plans to grow its team, increase its presence in the private sector, and add features to its tech platform which enables more inclusive communication across organisations and boosts productivity. Trickle’s customers include NHS Scotland, NHS England, CGI, and Johnston Carmichael.

Paul Reid said: “We look forward to continuing our growth plans with the support of our investors, and we’re seeing significant opportunities to work with more companies in the private sector.”

Learn more here.

SolarisKit Awarded £150K From the British Design Fund

Dundee based startup SolarisKit — creator of the ‘world’s first’ flat-pack, self-assembled solar water heater — has secured a £150k investment from the British Design Fund.

The company’s founder, Dr Faisal Ghani, is a mechanical engineer with 20 years’ experience in solar heating. He was struck with the idea for his heating product while working as an academic at Heriot-Watt University, where he was lecturing on renewable energy and engineering.

SolarisKit’s completely self-assembled solar water heater doesn’t require a pump or electricity and can be fitted in around 20 minutes without the need for tools or an installer.

“This funding will support us to expand our reach, accelerate product development, enhance our manufacturing capabilities and enter new markets,” said Dr Ghani.

Read more here.

Innovative Space Tech Projects to Receive £65M

The UK Space Agency (UKSA) has announced up to £65 million in funding for homegrown space technology and application innovations.

The UKSA’s National Space Innovation Programme (NSIP) will support “high-risk, high-reward” space projects designed by British organisations that can drive innovation, accelerate the route to market, and catalyse investment in the UK space sector.

Speaking on space tech and the new funding available, Dr Paul Bate, the UKSA’s chief executive, said: “In today’s interconnected world, space technologies have become critical to almost every aspect of our daily lives.

“The National Space Innovation Programme will support the UK’s most ambitious space technology projects and their potential to address real-world challenges, to catalyse investment, deliver new missions and capabilities, and harness the power of space to improve lives.”

Discover more here.

Over £50M Awarded to 30 UK Manufacturing Projects

Over £50 million in government funding has been awarded to 30 cutting-edge manufacturing projects including rapid-charging motorcycles and self-driving cars.

The funding will seek to boost the UK’s innovation of clean, green technologies, helping to create jobs and grow the economy.

Chancellor of the exchequer Jeremy Hunt said: “From farm tractors fuelled by hydrogen to rapid-charge first responder motorcycles, these projects receiving funding today show we are not short of innovators in this country.

“By supporting growth in the industries of the future, including through better regulation, we are delivering on our plan to get the economy growing and make the UK the best place in the world to start and grow a business.”

Learn more here.

Orkney to Trial Electric Vessels Following £15M in Funding

In a bid to reduce carbon emissions, Orkney was given £15m of the UK Government’s £80m Zero Emission Vessel and Infrastructure (ZEVI) fund to deploy two fully electric ferry boats for a three year trial. The ferries will remain under the ownership of Orkney Ferries upon the completion of the trial period.

With the funding, Orkney will add two ferries to its fleet. One will be 12 meters and go between the main town of Kirkwall and the islands of Shapinsay, Rousay, Egilsay, and Wyre on a year-round daily service.

A larger, 24-meter vessel, with room for light cargo will go between Kirkwall and the islands of Westray, Ebay, Sanday, and Stronsay up to five times a day.

“Whilst this is tremendous news, this latest development must not be confused with our drive to secure funding for replacement ferries,” said council leader James Stockan.

“This work is about looking at how we can, in the future, decarbonise our fleet – a key point of discussion with the Scottish Government.”

Read more here.

Over £9M Awarded to 9 Net Zero Technology Projects

The Net Zero Technology Centre (NZTC) has announced the nine winners of its 2023 Open Innovation Programme. The funding competition focused on developing and deploying data and digital technologies that will enable the delivery of the UK’s net zero ambitions.

A total of 143 businesses from across the globe applied for up to £500K each in funding from NZTC. The entire awarded sum surpasses £9 million, comprising £3 million from NZTC and over £6 million co-funded by industry partners.

The winning projects will support the transition towards net zero, trialling and deploying technology within the UK continental shelf. The winners are: Aircube, FutureOn, Heriot-Watt University, Nauticus, Predyct, Quasset, SUPCON, VISR, and XL Group.

Rebecca Allison, chief operations officer at the Net Zero Technology Centre, commented: “We had a fantastic response to our latest call for ideas and the competition was strong, which demonstrates the appetite for developing net zero focused technologies. These technologies will accelerate progress towards net zero and facilitate the energy transition.”

North Ayrshire to Take Part in £4M Smart Street Lamp Pilot

North Ayrshire is one of six UK authorities receiving a portion of the £1.3 million available from a UK Government pilot. The £1.3m Smart Infrastructure Pilots Programme (SIPP) — of which the Scottish council area will receive £242,765 — is bolstered by a further £2.7m fronted by the local authorities, bringing the total amount available to £4m.

The pilot aims to digitise urban infrastructure by using street lamps to act as EV charging stations, as well as to improve wireless connectivity. Both technologies are in high demand, and require innovative ideas to hit growth targets.

“We want to ensure that towns and cities across the UK are right at the forefront of this connectivity revolution, ready to seize the opportunities it will bring for local communities, which is exactly what these pilots are about,” said minister for data and digital infrastructure Sir John Whittingdale.

Discover more here.

Scots Gov Announces £1.5M ‘Pathways Pre-Start Fund’

Funding of up to £1.5 million will be delivered through the Scottish Government’s Pathways Pre-Start Fund this financial year to provide support, mentoring, and advice services for people thinking about taking the first steps towards creating a startup company.

It will have a particular focus on closing the gender gap and widening participation in entrepreneurship, and is the first step to developing a pre-start network to bring more people into the entrepreneurship pipeline.

“Through the jobs they provide and problems they solve, new businesses play a fundamental role in growing our economy while creating better futures for our people and communities. That is why we must inspire more Scots to view starting a business as a viable path,” said wellbeing economy and fair work secretary Neil Gray.

“We want to cultivate a thriving, world-leading entrepreneurial ecosystem and our Programme for Government 2023/24 sets out a very clear vision and tangible actions to help this and future generations of entrepreneurs succeed.”

Learn more here.

Scots Gov Supplies Digital Security Projects With £500K

Projects providing practical help to support people tackle the growing risks posed by online crime will share a £500,000 fund aimed at ensuring a digitally secure and resilient Scotland.

Organisations, including Scottish Union Learning and Community Enterprise, will use the £500,000 funding to provide workshops aimed at tackling scams and internet safety, deliver training to upskill under-represented groups into careers within cybersecurity, and provide digital advice in different languages.

Justice and home affairs secretary Angela Constance said: “Cyber-crime such as fraud and data theft can have a devastating impact on people, communities and businesses.

“The Scottish Government is committed to building cyber resilience within all our communities and this funding will enable many more people across the country keep themselves safe and secure when going online by supporting them to gain practical knowledge and skills to recognise and avoid cyber-attacks.”

Read more here.

Kinross Lands £300K for New Aerospace Centre

The Community Ownership Fund, which is injecting nearly £1 million into four projects in Scotland, has allocated £300,000 to the burgh of Kinross to establish a new aerospace discovery centre.

The centre aims to be a hub for interactive learning and exhibitions, looking to help inspire young individuals about aerospace related careers in STEM.

Other Scottish projects that will benefit from the Community Ownership Fund is:

1. Glasgow, which is receiving £256,793 to build a community net zero hub, focused on promoting low-carbon learning and training.
2. Stirling, which is receiving from £253,032 to bring a shop building in Stirling into community ownership, which will create a commercially sustainable village shop to cater to the local needs.
3. Aberdeenshire, which is receiving £183,000 to redevelop the Laurencekirk Community Centre into a larger, revitalised community hub capable of hosting local events.

Read more here.

Latest Inward Investment Catalyst Fund Round Awards £50K

Research into the relationship between financial vulnerability and mental health, and the development of a portable system for monitoring hormonal fluctuations, are among the latest projects to have been backed by a national inward investment fund.

The Scottish Inward Investment Catalyst Fund was launched by Interface and Scottish Government to support businesses not yet located in Scotland to work with Scottish academic institutions. The last round of the fund resulted in 5 projects being awarded up to £10,000 each.

Minister for small business, innovation, tourism and trade, Richard Lochhead, said: “The latest round of the Inward Investment Catalyst Fund has once again attracted diverse and innovative projects, with the expertise and support of our highly regarded universities and academia playing a significant role in attracting potential investors to consider Scotland and apply for the funding.”

The five funded projects are by: Serene (England) and University of St Andrews, Graymatics (Singapore) and University of Strathclyde, Reaforma Ltd (England) and University of Strathclyde, Salop Design & Engineering Ltd (England) and University of Strathclyde, viO HealthTech (England and U.S.) and Heriot-Watt University.

The deadline for the next round of the Inward Investment Catalyst Fund is 17th November, 2023.

Recommended reading

• DIGIT Deal Roundup | August 2023
• DIGIT Movers and Shakers | August 2023
• Scottish Equity Investment Rose Last Year, But Deals — Including in IT — Fell

Deals and Acquisitions

Hop Secures New Deal With Caribbean Company

Image courtesy of Heartland Media and PR.

Hop, the Scots hospitality property management software company, has expanded its customer base across three continents with a deal with the prestigious Kings Beach Village in Barbados.

The contract sees Hop provide single-point software to enable the company to operate all aspects of its luxury tropical villa complex on the Caribbean island’s West Coast.

The deal represents further international growth for Hop, with advanced discussions also underway with potential new clients in Nigeria – where it already has customers – and in Portuguese markets.

“This contract, on top of securing new business in the UK, Europe, Florida and Nigeria shows what a Scottish start-up can do and should encourage others to think internationally,” said Jon Erasmus, one of the company’s three co-founders, who also co-owns the Glen Mhor Hotel in Inverness.

“The fact that two of our directors remain hoteliers in Scotland means we can develop our product to meet the new economic circumstances all hospitality businesses are having to operate within, whether in Scotland or overseas, and we will continue to work with and bring in more partners, globally.”

That’s it for this month’s DIGIT Deal Roundup. Be sure to subscribe to the DIGIT newsletter to always stay up-to-date on the latest Scottish tech news!