Welcome to the latest edition of the DIGIT Deal Roundup column, featuring some of the top investment, acquisition and expansion news stories from February, 2023.

Scotland’s digital technology sector saw a number of notable deals across the month, including significant raises from Glasgow-based medtech, Phlo.

Here are the latest deals for February, 2023.

Funding and Investments

DirectID

Edinburgh-based fintech firm DirectID has secured investment of nearly £8 million from the Ingka Group, owner and operator of most IKEA stores.

With the funding, the Scottish firm is seeking to expand its credit risk offering into new markets, and advance the development of models for each stage of the credit lifecycle.

On the fintech’s cash injection, Peter van der Poel, Ingka Investments’ Managing Director, said: “We are pleased to have made this investment in DirectID and are confident of their continued growth in the open banking market.

“They have developed an innovative solution with the potential to complement and disrupt the traditional credit and risk market and help drive financial inclusion for more people. Open Banking-enabled credit and risk insights is an area we believe can add value to Ingka’s financial services proposition in the future.”

To read more, click here.

University of Edinburgh

Founders of University of Edinburgh-supported start-ups, including many that are seeking growth investment, will be given the opportunity to showcase their companies to an audience of investors, business support groups, and fellow entrepreneurs at two key events taking place next month.

Ten early-stage companies from the University’s Venture Builder Incubator (VBI) 3.0 cohort will be invited to pitch at a Showcase on 3 March. This will include four companies looking at innovative forms of cancer research and treatment that are taking part in the VBI through its partnership with Cancer Research Horizons.

Meanwhile, 12 AI-driven companies will also present their businesses at the AI Accelerator Showcase being held on 22 March.

Laura Bernal, Venture Builder Incubator Programme Manager, said: “The VBI Showcase will provide founders behind early-stage ventures with an ideal platform to present and further develop their innovation into a viable business. It also offers participants a great opportunity to build their commercial contacts and make valuable connections.”

To read more, click here.

Topolytics

Edinburgh-based Topolytics has received a £1.5 million funding boost, enabling the company to launch its WasteMap solution and extend the business commercially.

Several investors, as well as a grant from UK Research and Innovation (UKRI) contributed to the funding, after the business targeted private investors who could bring experience in scaling data analytics and SaaS businesses globally.

“Topolytics has a growing global reputation for the insights available through our WasteMap® platform. It helps waste producers and recyclers to drive resource and cost efficiencies, to trace the movement of waste and measure their impact, whilst validating performance and improving the quality and reliability of ESG and carbon reporting,” said Michael Groves, CEO of Topolytics.

To read more, click here.

Green Maritime Tech

The UK’s race to decarbonise the maritime sector has been given a boost with £60 million in government funding distributed to companies nationwide that are developing ‘futuristic green technology.’

For the first time, the UK government is funding the development of new clean maritime technology across a 2-year period. Companies in 12 regions around the UK will benefit from the cash, generating highly skilled jobs across the nation in a bid to position the UK as a world leader in green solutions.

To read more, click here.

Space Scotland

£6.5 million is being dedicated to the UK Space Sector across 18 different schemes, aiming to ‘level up’ the industry.

High impact, locally-led schemes and space cluster development managers will receive the support across England, Wales, Scotland, and Northern Ireland.

Secretary of State for the Department for Science, Innovation and Technology, Michelle Donelan, said: “These projects will tap into the wealth of talent found in places like Cornwall and the east Midlands, as well as across Scotland, Wales and Northern Ireland, while using space and satellite technology to support local communities.

“This funding will help link local clusters to valuable networks of innovators and investors, showcasing the strengths of the UK space sector to international investors and levelling up the economy.”

To read more, click here.

University of Glasgow

The University of Glasgow is set to acquire a cutting-edge scientific instrument – the electron diffractometer –  after securing £1.8m in funding.

The Engineering and Physical Sciences Research Council (EPSRC), part of the UK Research and Innovation, has provided the funding in support of the University’s acquisition of an electron diffractometer.

Ross Forgan, Professor of Supramolecular and Materials Chemistry, led the process to bring the equipment to the University, with support from experienced crystallographer Dr Claire Wilson, manager of the College of Science and Engineering Analytical Suite.

Professor Forgan said: “I’m grateful for EPSRC’s support to help bring this new electron diffractometer to Glasgow, which will put us in a unique position for an independent UK research university.”

To read more, click here.

Women Returners and STEM Returners

Following the International Day of Women and Girls in Science, a new initiative has been launched to help people return to science, technology, engineering and maths (STEM) careers.

The scheme, led by the Minister for Women and Equalities Kemi Bandenoch and backed by £150,000 of government funding, will be run by Women Returners and STEM Returners, and will target those who have taken lengthly career breaks to care for others, in a bid to give them skills they’ll need to succeed in the workplace.

Minister for Women and Equalities, and Secretary of State for Business and Trade, Kemi Badenoch MP, said: “In the last decade we have seen more girls studying STEM subjects at school and university, but we know that too many women later drop out of those careers because they need to care for children or elderly relatives.”

To read more, click here.

Nodus Oncology

Nodus Oncology, a biotech company based in Edinburgh, announced it has raised £2.4 million from new investor KHAN Technology Transfer Fund I (KHAN-I) as well as Cumulus Oncology.

The company is focused on developing molecules that inhibit novel “third wave” DNA damage response (DDR) targets, a new set of proteins that have recently been discovered and are thought to play important roles in the response to DNA damage.

“Nodus is focused on developing the next wave of cancer therapeutics in the DDR space, bringing new and effective treatment options to patients,” Ian Waddell, CEO of Nodus Oncology said.

To read more, click here.

Smart Green Shipping

Dumfries-based design and engineering company, Smart Green Shipping, has secured £1.35 million in an investment round backed by MOL Drybulk Ltd and Scottish Enterprise.

Smart Green Shipping will now see further growth in their development of unique retrofit sails and technology for sustainable commercial ships.

Chief Executive of Smart Green Shipping Diane Gilpin said: “Wind-assist is the only technology that can support global shipping’s GHG reduction in line with International Panel on Climate Change advice – emissions must start reducing rapidly if we are to avoid temperature increases of more than 1.5 degrees.”

To read more, click here.

STC INSISO

Aberdeen-based tech solutions company, STC INSISO, has announced a £2 million investment from BGF to support a growth strategy focussing on the company’s expanding suite of software products.

STC INSISO’s problem-solving products are used across industries including oil and gas, construction, marine, and utilities.

Mark Rushton, CEO at STC INSISO, said: “BGF’s investment proposition was particularly attractive to us for two reasons; firstly because of their strong track record of supporting innovative Scottish businesses, and secondly because of their people who gave us immediate confidence and were culturally aligned to our team from day one of the journey.”

To read more, click here.

IBioIC

The total investment by the Industrial Biotechnology Innovation Centre (IBioIC) and its members and partners in green skills has reached £25 million, supporting Scotland’s transition to net zero as well as biotech research initiatives.

£25 million is based on the combined investment in the innovation centre’s skills programmes including industry contributions completed since IBioIC’s inception in 2014.

Ian Archer, technical director at IBioIC, said: “Skills are a crucial element of Scotland’s transition to net zero emissions in manufacturing. As manufacturing evolves to embrace more bio-based processes, we will need more people with technical skills to help grow that to scale. But importantly, those technical skills need to be combined with commercial and practical application. Already, we are hearing of early-stage companies struggling to take the next steps because of a limited talent pool.”

To read more, click here.

Phlo

Phlo, the UK digital pharmacy company headquartered in Glasgow, have closed a £10m Series A round led by family office Thairm Bio.

The funds will be used to expand the reach of Phlo Digital Pharmacy, the first UK digital pharmacy to offer patients same-day medication delivery, and to scale Phlo Connect, the digital infrastructure platform for healthcare providers.

To read more, click here.

Dxcover

Dxcover Limited, a clinical-stage diagnostics company developing spectroscopic liquid biopsy technology for early detection of multiple cancers, today announced it has raised $11.9 (£9.7) million in Series A and grant financing.

The funding will support the ongoing development of the Dxcover® Liquid Biopsy Platform for the detection of early-stage cancers, including brain and colorectal cancers.

“This is a very significant funding milestone in our mission to detect cancer early and improve survival and quality of life for patients,” said Dr. Mark Hegarty, CEO, Dxcover.

To read more, click here. 

Deals and Acquisitions

Clevermed

Edinburgh-based Clevermed, the health tech company, has been acquired by System C, one of the UK’s providers of hospital-wide software for the NHS.

The acquisition has aims to unlock growth and investment for its flagship product, the parent and baby health system, BadgerNet.

Jane Stephenson, Clevermed CEO said: “Clevermed was founded because there is a great need for IT systems to be part of the wider NHS journey in improving care for newborns, women and families. Many people who work at Clevermed have had a baby in the neonatal unit or have gone through a tough pregnancy and are personally invested in our mission.”

To read more, click here.

Akari Solutions & Woolf Partners

Akari Solutions Group, Ltd, the Glasgow-based Microsoft solution partner, has been acquired by US-based Woolf Partners.

As a technical firm, Akari specialises in tailored solutions using the Microsoft technology stack and apps that sit on top of Microsoft Teams and the Power Platform, to solve specific business challenges.

Stuart Fenton, Managing Partner for Woolf Partners, announced that significant investment would be made to expand the business’s capability, capacity and scale.

To read more, click here.

Nile & Dig Inclusion

Nile, an Edinburgh-based strategic design company, have announced the acquisition of Dig Inclusion and its flagship accessibility product, Hugr.

Early in the field of accessibility, Dig Inclusion is dedicated to making digital media inclusive for everyone.

In acquiring the company, Nile hopes this will help drive the change necessary to make the online world more accessible for everyone, and have a long term impact on future generations.

Sarah Ronald, Founder of Nile, said: “We are excited to welcome Dig to the Nile ecosystem. Their dedication to making technology accessible for all aligns perfectly with our mission to leave behind a better world.”

To read more, click here.

Forth Point & Blend360

Forth Point, the Scottish data business, has been acquired by Blend360, a global provider of data, analytics, and talent solutions for Fortune 500 companies.

Specialising in data engineering, AI and ML solutions, Forth Point’s acquisition is a bid to further strengthen Blend360’s global data capability, a key step in its journey to being at the forefront of data innovation and delivery for clients.

Ozgur Dogan, President of Data Science & CX Solutions, commented on the acquisition stating, “Forth Point brings world-class talent and innovative use cases in the areas of supply chain, manufacturing and operations which helps us extend beyond our traditional footprint using Data Science and Data Engineering to optimize business performance.”

Founder and COO of Forth Point, Will Boyle, added, “The vision for Forth Point was to build a business that delivered world-class data solutions and use cases, working in partnership with our clients to have a positive impact on the world.”

To read more, click here.