Funding and Investment

FutureX

Business education and community platform FutureX will expand its Silicon Valley Scale programme after securing funding from the Scottish Government Tech Ecosystem Fund.

With the new funding, the group will be able to include senior teams and underrepresented founders on its programme, creating Silicon Valley Scaling Teams.

In addition, fully funded places are currently being offered to founders from traditionally underrepresented backgrounds.

Commenting on the expanded programme, Bruce Walker, co-founder and CEO at FutureX, said: “There are many great initiatives out there to help founders, but we have found that senior teams have been overlooked.

“This year, with support from the Scottish Government’s new Ecosystem Fund, we’re taking everything we have learned to help founders share knowledge and up-skill alongside their senior leaders and team members.

“We are also delighted to be working with Scottish Enterprise to provide five fully funded places to traditionally underrepresented founders.”

Want to find out more? Read the full article.

SIS Ventures

Scottish impact investor SIS Ventures launched a second round of fundraising with the aim of attracting up to £5m to scale up its support for Scotland’s high impact potential early-stage businesses.

SIS Ventures’ Impact First fund seeks to provide investors with the opportunity to make returns on Scottish businesses whose social and environmental impact is aligned to the United Nations Sustainable Development Goals (UN SDGs).

The fund has already invested £1.3m into eight high impact and high growth potential businesses and continues to deploy £5m Scottish Government funding into a pipeline of businesses.

This second Enterprise Investment Scheme (EIS) fundraise presents an opportunity for investors to support both existing Impact First investees to grow through follow-on funding rounds, as well as invest in new, early-stage businesses.

Minimum investment sought is £20,000, with each investor committed to at least six businesses over a period of seven to ten years.

Speaking about the Impact First fund, David Ovens, Chair SIS Ventures, said: “Using the power of business and innovation to help address society’s greatest challenges and needs, a global culture shift is underway to build a more impactful and inclusive economy.”

He added: “The societal issues of today require ever more innovative solutions. At SIS Ventures we believe that impactful businesses, those that combine profit with purpose, are the future and should be supported with the full power of the investor community.

“Impact First is developing an impressive track record, a strong pipeline and a worthy reputation as the leading investor in this space. I hope that the fundraising will be well supported by those who share our mission to create an impact economy.”

Want to find out more? Read the full article.

Eos Advisory

Eos Advisory has announced total valuation of £121m based on latest investment rounds and saw its first two exit events in 2021.

The St Andrews-based investment led a £1.24m investment into Aberdeen-headquartered R&D firm RAB-Microfluidics in January last year.

In February 2021, Eos announced its first ‘strategic investment partnership’ with US-based Kineticos Life Sciences, to co-invest in early-stage Scottish companies. The venture partnership looks to invest over £10m over the next five years in oncology-focused life sciences ventures.

Sustainable food protein scale-up Enough (previously called 3F BIO), a University of Strathclyde spin-out, secured a $43m Series B round in June last year, one of the largest investment rounds into a Scottish technology company.

In July, RNA and DNA genetic sequencing specialist Wobble Genomics secured a £2.15m. Wobble has developed a range of hardware and software tools that give scientists and clinicians a more detailed picture of our underlying biology.

Commenting on the news, Andrew McNeill, Managing Partner, Eos Advisory, said: “Over the past twelve months, Eos Advisory has seen significant growth both in our portfolio and in our core business.

“We already had a strong track record for due diligence and supporting our portfolio, but we have found that better communicating our focus and process as impact investors has really widened our network of investors and our opportunities.

“Our modus operandi is to continue supporting our companies post-investment and helping them to grow. On the investor side, we have expanded the investor base outside Scotland, especially across the UK and North America. 2022 is going to be another exciting year and we have a number of milestone announcements in the pipeline.”

Want to find out more? Read the full article.

CivTech

The Scottish Government will provide £6m of funding to public sector tech innovation accelerator CivTech.

With the new cash injection, the programme will fund small to medium businesses in the private sector as they work to find ways to improve public sector services.

Thanks to the funding, the accelerator will significantly increase the number of challenges it sets, ensuring a wide range of problems can be solved in collaboration with increasing numbers of public and third sector organisations.

Ivan McKee, Minister for Business, Trade, Tourism and Enterprise said: “CivTech’s Accelerator Programme creates a hub for government and industry to come together and develop transformational technologies to tackle problems faced by local communities.

“CivTech clearly demonstrates that the public sector can innovate, and that innovation can contribute to the economy.

“It is regarded both in Scotland and across the globe as a world leader in GovTech – the application of technological solutions, expertise and technical ability across our public services – a market that will grow from $400 billion (£298bn) in 2018 to $800bn (£597bn) in 2023.

“This funding will allow CivTech to realise its growth ambitions and support the success of businesses taking part on the programme, which in turn allows us to build better public services and drive our economy.”

Want to find out more? Read the full article.

Talking Medicines

Glasgow-based AI-driven patient intelligence company Talking Medicines closed a £1.5 million funding round to support expansion into the US.

Boston-based life science investor Mark Bamforth of Thairm Bio has joined the current funders of the Scottish company in a syndicated funding round of £1.5m alongside Tern Plc, the investment company specialising in the Internet of Things, impact investor SIS Ventures, and Scottish Enterprise, which has also provided grant funding through its SMART:SCOTLAND programme.

“This is a great opportunity to support the Talking Medicines’ team to bring their platform to the US to help patients and pharma companies to improve the delivery of healthcare,” said Bamforth.

The Talking Medicines funding round brings the total raised by the company to £4m. The company is focusing this year on expanding its PatientMetRx subscription base amongst pharma brand teams and pharma marketing agencies.

Talking Medicines has also established a new office in New Jersey to support these plans with a view to recruiting a US-based sales team.

Commenting on the investment round, Talking Medicines CEO, Jo Halliday, said: “2022 promises to be a big year for Talking Medicines with this new investment.

“Having scaled up our operations and formally launched our PatientMetrx technology platform, we’ve now got our sights set on expanding in the US pharma market, providing brand teams and agencies with a new way of understanding what patients are really saying and feeling about their medicines.

“The pharmaceutical industry will go through seismic change this year and our actionable patient insights will be transformational for the industry. Our new office in New Jersey provides the ideal base for us to build relationships with customers, acquire new leads and drive revenue growth.”

Want to find out more? Read the full article.

LendingCrowd and Barlcays Bank

Edinburgh-based fintech LendingCrowd has closed a funding deal with Barclays Bank and a global investment firm to support SMEs across Britain.

The funding, worth around £100m, will be loaned to SMEs across the country via the British Business Bank’s Recovery Loan Scheme (RLS).

LendingCrowd confirmed it has started to deploy funding to SMEs across Britain, providing individual loans of up to £500,000 over a three, four or five-year term.

The new funding agreement represents the biggest capital markets deal in LendingCrowd’s eight-year history, with operations expanding and headcount growing by a third to support the initiative.

Stuart Lunn, Founder and CEO of LendingCrowd, said: “It is hard to imagine a more difficult business environment than the past 18 to 24 months, which has seen many small and medium-sized businesses severely limited in how much they can trade, and trying to operate under rapidly changing restrictions, through no fault of their own.

“Many of these SMEs are good, solid businesses that desperately need some extra support. However, there remains a significant unmet demand for business lending, particularly in the £250,000 to £500,000 space. It is crucial for businesses, and for our wider economic recovery, that this demand is properly served.”

Lunn added: “We have invested in our tech-enabled lending platform and, together with our funding partners, we will offer businesses automated checks, faster decisions and competitive rates for small business loans. This saves time and hassle for customers, accountants and intermediaries who support these SME borrowers.

“The next few years will require a real collective effort to get our economy back on track – at LendingCrowd, we are determined to play our part.”

Want to find out more? Read the full article.

Cumulus Oncology, Eos Advisory and Scottish Enterprise

Scottish biotech Cumulus Oncology has secured a £4.1m investment led by St Andrews-based firm Eos Advisory.

Scottish Enterprise invested alongside Eos Advisory as Cumulus plans further scale, while an additional £1.5m will follow in the coming months.

Speaking about the investment, CEO and co-founder of Cumulus Oncology, Clare Wareing, said: “With the support of our cornerstone investors, we will accelerate our business model to identify and develop new oncology treatments that target the unmet medical needs of specific cancer patient populations.”

Cumulus is also announcing that Dr Russell Greig will be joining the board as Chairman. Greig, a GlobalScot, spent much of his career working on both the drug development and investment sides of the business at GlaxoSmithKline, where he held a number of positions including President, International Pharmaceuticals, and Senior Vice President, Worldwide Business Development.

More recently, he has held board roles for a series of biotechs and has advised life science VCs and biotechnology companies in the US, Europe, and Asia via his Philadelphia-based Greig Biotechnology Global Consulting business.

“Cumulus has established a unique position in Europe, and is set to make an impact further afield in other regions including North America,” Greig said.

He added: “I look forward to helping to guide Clare and her expert team around strategic focus over the months and years ahead.”

Want to find out more? Read the full article.

Good-Loop

Scottish startup Good-Loop raised £4.5m as part of a Series A funding round last month.

Led by US investment fund Quaestus Capital Management (QCM), the cash injection brings the total investment in Good-Loop to £6m since the company launched in 2016.

The funds will be used to accelerate the company’s product roadmap, which includes the development of new solutions aimed at reducing the carbon footprint of digital advertising.

Good-Loop revealed it also plans to expand internationally. At present, the firm has offices in Edinburgh and London, but plans to open new sites in New York and Chicago to serve a burgeoning US market.

The funding round saw additional backing from Scottish Enterprise, SIS Ventures and European adtech fund, First Party Capital.

Commenting on the investment, Good-Loop CEO & co-founder Amy Williams said: “Backing from industry experts like QCM and FirstPartyCapital, social impact investors and, indeed, the general public, will help to supercharge our growth whilst keeping us true to our values at every step along the way.”

Williams said: “At the heart of our industry is an inherent value exchange between advertiser and consumer, and I’m on a mission to harness that value as a significant force for good.

“Through our respectful, positive ad platform, brands can treat people online as partners – rather than targets – united by a desire to have a meaningful social impact.”

Want to find out more? Read the full article.

Touchlab and Octopus Ventures

Edinburgh robotics startup Touchlab has announced the successful raising of $4.8m in seed funding.

The Scottish firm, which develops an electronic skin (e-skin) for robots, had its investment round led by Octopus Ventures, one of the EU’s largest early-stage investors.

Octopus Ventures also had additional participation from existing Touchlab investors, including Creator Fund and Techstart Ventures.

The investment will enable the Edinburgh robotics startup to further strengthen its commercial and tech teams to meet the growing demand for large-scale deployment of its e-skin technology.

Mason Sinclair, investor at Octopus Ventures, said: “Touchlab has made truly pioneering advances with its technology in tactile sensing.

“Electronic skin will open a world of new opportunities and applications in robotics, making it an extremely exciting time for the industry.”

Want to find out more? Read the full article.

CENSIS

Scottish companies will receive a cybersecurity boost from CENSIS, Scotland’s innovation centre for sensing, imaging, and Internet of Things (IoT) technologies.

Thanks to additional funding from the Scottish Government, the group is expanding its IoT Secure programme, which will help Scotland’s SMEs, spinouts, and startups develop and use IoT products and services more securely.

In the first year of the programme, over 20 companies received free guidance and advice from CENSIS’s IoT experts.

The additional investment will extend the programme to run over the next 12 months. Another 20 companies will have the opportunity to take part, from developers of IoT products and services to end-users and businesses looking to introduce new IoT-led processes.

The funding will also cover a pilot workshop that will see university students engage with a Scottish company and collaborate to solve IoT cybersecurity challenges.

Not only will this help boost cybersecurity at the company, it can potentially lead to future work placements and a wider rollout across other Scottish universities.

Acting business development director at CENSIS Cade Wells said: “IoT comes into so many aspects of our lives: at home, at work and in public infrastructure and the market is growing at pace.

“This year SMEs will find that IoT cybersecurity is much more of a priority, with legislation changes coming soon. Our goal is to help companies to understand what this means for their products and services, ultimately helping to share best practice and create high quality, secure IoT devices.

“We’re looking to work with a range of companies on a flexible consultancy basis, offering a hotline for people to get in touch and ask for help as and when they need it.”

Want to find out more? Read the full article.

The Zero Emission Bus Challenge Fund

A new programme to make Scotland’s public transport greener has received over £62m of funding from the Scottish Government.

The Zero Emission Bus Challenge Fund (ScotZEB) will support operators across Scotland to replace 276 old diesel buses with new battery-electric models and the required charging infrastructure.

In addition, the investment, the largest made in Scotland to decarbonise buses, will support the Scottish Government’s Mission Zero ambitions for public transport.

Minister for Transport Jenny Gilruth said: “We want more people to choose to travel by bus now and in the future and to do so, knowing that local buses are contributing to our climate change ambitions.

“Our Zero Emission Bus Challenge Fund is successfully decarbonising Scotland’s bus fleet faster than ever before and making a significant contribution to our Mission Zero ambition for Transport.

“We’re providing £62m in a way which attracts additional private sector investment, resulting in 276 new zero emission buses to be deployed across Scotland. 137 of these buses will be built in Falkirk – supporting skilled, green manufacturing jobs and benefitting the Scottish economy.”

She added: “Supporting a just transition to a net zero economy is central to the ScotZEB approach. Through this round we’re supporting smaller bus operators and rural service providers, whom I’m pleased are equally keen to step up and help tackle the climate emergency.

“I’m pleased that with this significant award for greener buses, free bus travel for under 22s and the provision of over half a billion pounds in long term funding for bus priority infrastructure – we’re putting buses at the heart of Scotland’s green recovery and helping people to choose to travel more sustainably.”

Want to find out more? Read the full article.

Speech Graphics

Edinburgh-based tech firm Speech Graphics has raised $7m in funding to build its audio-based animation technology.

Speech Graphics’ tech enables virtual avatars to move in conjunction with the users’ in real time.

The accelerated growth of Speech Graphics (catalysed by the mass adoption of hybrid working-enabling technology) has led to the creation of a new enterprise-facing brand – Rapport.

CTO Michael Berger said: “Our success working in the entertainment and gaming industry was what led to conversations with brands searching for real-time, enterprise-level applications of facial animation technology.

“But facial animation is a complicated task. It requires in-house expertise that many companies do not have the capability or resources for.

“Audio processing, real-time facial motion synthesis, low-latency streaming, 3D visualization, and more are needed to create the AI interactions these brands are looking for.”

Hofer concluded: “The metaverse, VR, and AR will increasingly rely on authentic digital representations of individuals as well as brands. Rapport is the platform that empowers organizations to do that at scale.”

Want to find out more? Read the full article.

The Scottish Government

The Scottish Government has announced an additional £1.3m in Scottish school funding to provide computing tech to kids across the country.

Schools will be able to access cash to refresh computing science tech for pupils and get them interested in future careers in sector roles.

They can now bid for up to £3,000 in Scottish school funding for additional computing science equipment, devices, software or teaching resources.

Additionally, two class sets of pocket-sized computers will also be given to each school to educate pupils on how software and hardware can work together.

Commenting on the news, Education Secretary Shirley-Anne Somerville said: “It is essential that we have as many talented young people leaving schools with the skills Scotland’s technology sector and wider economy fundamentally depends upon.

“This investment aims to refresh computing science lessons for learners – equipping them with the skills they need for careers in tech.”

Toni Scullion and Brendan McCart, who are part of the Scottish Teachers Advancing Computing Science (STACS), said: “We are delighted to be appointed as co-leads of STACS. This is an incredible opportunity for Computing Science, and we are looking forward to working with the dedicated teachers across Scotland who are delivering Computing Science in schools.

“This initiative recognises the importance of Computing Science as a subject in schools and the integral part it plays in Scotland’s ambition for a Digital Nation.

“Computing Science in education has a key role in helping to engage, nurture and inspire the next generation of talent and that journey starts in the classroom.”

Want to find out more? Read the full article.

Krotos and Metavallon VC

Edinburgh-based film and game audio software company Krotos received a seven-figure seed investment from Greece-based Metavallon VC.

The latest investment follows earlier funding from the University of Edinburgh’s Old College Capital fund, as well as strategic angel investors such as Ian Ritchie CBE, who specialises in the information technology sector, and the video game producer Leslie Benzies, former president of Rockstar North and producer of the Grand Theft Auto series.

With the existing round of funding, Krotos will reinforce its team, accelerate commercialisation and ensure the successful deployment of new pilots with partners and clients.

Krotos founder Orfeas Boteas said: “We are super excited to work with George and the Metavallon team to realise our vision and take Krotos to the next level. This will allow us to significantly expand our product offering and allow more creatives to make the entertainment world sound awesome.”

George Karantonis, Partner at Metavallon VC, added: “We are super happy to welcome Krotos as the latest investment in Metavallon I portfolio.

“We believe that Krotos has already a proven solution and an impressive clientele worldwide and with the funds of the round will set course to become the leading technology provider to thems of content creators out there. As a result, we expect exponential growth of sales.

“We are also happy because Orfeas has clear plans to base a significant part of future activities in Greece.”

Want to find out more? Read the full article.

Sonis Smart Security and TRICAPITAL

Scottish security tech firm Sonis Smart Security has secured funding to accelerate the launch of its NoEntry smart security system.

Sonis announced that it has secured funding through TRICAPITAL, a leading early-stage angel investor syndicate and Scottish Enterprise, Scotland’s national economic development agency.

The funds will be used to expand the Sonis team and to support the 2022 launch, sales, and marketing of the new NoEntry smart security system.

Commenting on the new funding, Sonis founder and CEO Bill Marr said: “With NoEntry we have developed a unique, hassle-free security alarm system that is set to revolutionise the way people protect their property.

“The investment from TRICAPITAL and Scottish Enterprise will help us shorten time-to-revenue by accelerating manufacture and supporting ongoing sales and marketing campaigns.”

Managing Partner of The TRICAPITAL Syndicate LLP Moray Martin added: “Our mission is to help companies deliver their growth potential with funding, guidance and expertise.

“We have a particular focus on technology and with its advanced NoEntry system we believe that Sonis has the potential to grow rapidly by offering a highly differentiated solution that delivers a distinct competitive advantage in the security alarm sector.

“Working with Scottish Enterprise and the specialist legal team at Anderson Strathern we have been able to deliver the funding that will allow the company to fulfil that potential.”

Want to find out more? Read the full article.

Deals and Acquisitions

North Lanarkshire Council and Commsworld

A new deal worth up to £150m aims to accelerate access to gigabit-capable fibre broadband across North Lanarkshire.

The move, approved by North Lanarkshire Council, could see the money spent as part of a 15-year deal with Commsworld to transform North Lanarkshire Council’s digital infrastructure.

The deal will ensure significantly improved access to high-quality, reliable fibre connections, making a real and transformative difference to investment opportunities for businesses while also tackling digital exclusion.

It will also boost school internet access and create a free public WiFi network across town centres and community facilities. This includes council and public buildings, sport and leisure facilities, culture venues, libraries, country parks, sheltered housing, schools and homelessness accommodation.

Councillor Kenneth Duffy, the convener of the council’s Transformation and Digitisation Committee, said: “The potential impact of these plans cannot be underestimated as this contract has brought forward and increased the availability and choice of fibre broadband to towns, communities, businesses and rural areas across North Lanarkshire, massively improving their digital connectivity and delivering a GVA of around £1.3bn over 15 years.”

Chair of Commsworld John Trower added: “Commsworld is looking forward to working with North Lanarkshire Council to bring rapid and thorough transformation to their digital infrastructure. This transformation will provide opportunities to regenerate every one of its town centres, schools and council buildings.

“Commsworld has a track record of delivering massively enhanced infrastructure to local authorities in Edinburgh, Glasgow, Renfrewshire and the Scottish Borders.

“We have been able to provide a step change in connectivity and resiliency in all these areas, changes that have delivered considerable benefits to everyone living, learning and working there. We look forward to being able to do the same in North Lanarkshire.”

Want to find out more? Read the full article.

Intelligens Consulting

Telecoms expert and smart city advisor Intelligens Consulting added two new clients in February after several deals in December 2021 and January 2022.

The first of the new commissions is to provide an independent review of a government funded IoT project and validate that the commercial partner has met its contracted milestones.

Secondly, the firm will support a social housing provider that has been approached by a major fibre operator offering to connect all its properties with a low-cost fibre proposition.

Founder and Consulting Director of Intelligens Consulting Iqbal Singh Bedi said: “IoT will play a significant role in the development of places and local authorities should start to develop their IoT roadmap to benefit from the productivity, efficiency and cost savings that IoT can bring.”

Bedi added: “Working with a major social housing provider to secure affordable fibre connectivity to all its premises is vital to ensure we don’t leave anybody behind.”

TVSquared and Innovid

Scottish technology company TVSquared has been acquired by Innovid as part of a cash and stock transaction valued at around $160m.

The deal, which is expected to close by the end of Innovid’s fiscal second quarter, consists of $100m in cash as well as additional stock considerations.

Innovid said the acquisition will help “reimagine the future” of cross-platform TV advertising and position it as a single source for ad-serving and measurement.

Commenting on the acquisition, CEO & Co-founder Zvika Netter said: “In acquiring TVSquared, we aim to provide the most complete view of the total TV and digital universe through a scalable, currency-grade measurement platform.

“Additionally, we immediately accelerate and broaden our scope globally, as brands, agencies, publishers, and broadcasters on six continents rely on TVSquared to maximise reach, identify the right audiences and drive business growth with TV.”

Calum Smeaton, CEO and founder of TVSquared, commented: “Innovid and TVSquared share complementary visions to transform TV measurement through a comprehensive view of audiences across all devices and platforms worldwide.

“Joining forces establishes a cross-platform measurement solution that maps one of the largest datasets of audiences, homes, and devices, at scale, across linear, CTV, and digital video.”

As part of the acquisition, Smeaton will step down as chief executive, taking on a strategy role to support the integration with Innovid.

President Jo Kinsella, who has been with the company almost since its inception, is expected to join the Innovid executive team, where he will report to Netter.

Kinsella said: “Together, TVSquared and Innovid are at the centre of TV’s transformation, meeting the market’s needs for a converged TV measurement alternative.”

Want to find out more? Read the full article.

Proteus and Sharktower

Data consultant Proteus has announced the acquisition of intelligent change delivery platform Sharktower for an undisclosed seven-figure sum.

Proteus said it can now extend its business to target corporates, charities, and private equity firms, as well as scale-up businesses.

The acquisition will also provide an exit for their investor base including main backers Equity Gap and Scottish Enterprise.

Additionally, Sharktower CEO Craig Mackay will become Chief Technology & Product Officer at Proteus, while his co-founder Lynsey Taylor takes the role of Chief Client Experience Director at the company.

Mackay will also join the Proteus executive team, which is made up of CEO Jason Sahota, CGO Tony Russell, CFO Lorainne Nichols, and board chair Ronnie McCombe.

Commenting on the acquisition, Sahota said: “This is the beginning of a new dawn for managing and predicting change in organisations globally.

“The Sharktower platform is second-to-none, and by bringing it into the Proteus product suite we are offering something truly unique to the market.

“Businesses are growing tired of the ‘land and expand’ approach from traditional consultancies, which create a dependency on outsourcing change and fail to upskill teams for the future. Leaders need a new solution; our integrated proposition means we can provide empowering data-led support at every stage of the journey that looks out of the windscreen, not the rear-view mirror.”

Kerry Sharp, Director of Growth Investments at Scottish Enterprise added: “Scottish Enterprise has been pleased to support and invest in Sharktower alongside Equity Gap.

“The acquisition by Proteus is a really positive development that will provide the company with a strong platform to achieve further growth, including the future creation of new jobs, as the company remains in Scotland under the Proteus banner.”

Want to find out more? Read the full article.

Exception and the DWQR

Exception, a digital solutions company, has won a cloud contract with the Drinking Water Quality Regulator (DWQR).

Exception will migrate the DWQR’s Oracle workload to the cloud, delivering a robust, scalable cloud service. The contract includes complex data integration, combining data from various sources which will allow DWQR to gain new and invaluable insights. The contract to build and provide ongoing support to the system is worth over seven figures.

Konstantina Kagia, Product and Cyber Security Risk Manager at DWQRm, commented: “We are excited to be working with Exception to deliver digital transformation in the Drinking Water Quality Division within Scottish Government.

“A multidisciplinary team was quickly mobilised and we are pleased to have a close, open, and transparent relationship.

“We are looking forward to transforming the way we work and to maximising the intelligence we harness from our data, and we are pleased to have Exception on board to help us deliver the digital foundation to facilitate these goals.”