Welcome to the latest edition of the DIGIT Deal Roundup.

Last month, Scotland’s tech sector saw some big funding wins in cleantech, the space sector, and the broader innovation economy.

For a recap on those standout stories, here’s our round-up.

Funding and Investments

Scottish SpaceTech Lands £320K Investment

An Edinburgh-based space firm has landed more than £320,000 to aid growth in one of the UK’s fastest growing industry sectors.

Aurora Avionics specialises in producing the electrical systems necessary for flight, called avionics, which is driven by software which guides the rocket to its planned destination – in essence the rocket’s entire nervous system.

At present the growing number of launch vehicle manufacturers are investing vast sums, as well as time and effort, in creating their own avionics – something Aurora’s co-founders hope to change with the creation of the first “off the shelf” systems.

To read more, click here.

Scottish Cleantech Company Secures Further £230,000 Funding

Dundee-based cleantech Heero Technologies has secured £230,000 of bridge financing from existing lead investor Tricapital Angels Limited and Scottish Enterprise, ahead of a planned Series A funding round.

For net zero targets to be met, focus must be on improving the energy efficiency of 19 million homes across the UK. The Heero Technologies app seeks to directly addresses the challenges often associated with energy retrofit projects, such as the disruption caused by invasive measures, energy efficiency financing and grant uncertainty, identifying trusted installers, as well as allowing flexibility and choice over technologies to implement.

To read more, click here.

Scottish Government Startup Funding

Extra investment to grow and nurture high-growth businesses and entrepreneurs in Scotland has been announced.

The £5 million package aims to help deliver end-to-end support for Scotland’s startup companies.

The package – written verbatim from a press release sent to DIGIT – includes:

• Funding to expand the business funding competition Scottish EDGE, helping broaden and tailor the range of financial support available to fledgling businesses.
• The development of pre-start support, aimed at stimulating the earliest stages of business creation and product development for under-represented groups.
• Support to maximise the economic impact of university spin-out companies, and commercialise research.
• Investing in initiatives that will attract the world’s top talent and showcase Scotland as a global destination for start-up founders and investors.

To read more, click here.

Edinburgh AI Startup Secures £6M Seed Funding

Malted AI, the Edinburgh-based artificial intelligence startup recently featured by DIGIT, has secured £6 million seed investment funding.

Founded in 2023, the startup ‘distils’ AI models, helping smaller companies build tailored AI models at a fraction of the cost.

The funding round was led by Hoxton Ventures, joined by Creator Fund and several angel investors.

To read more, click here.

£9M Plugged Into 12 Innovative Earth Observation Tech Projects

The UK Space Agency has invested £9 million in an early-stage tech programme to enhance Earth observation technologies to better understand and protect the planet.

Delivered by the Centre for Earth Observation Instrumentation (CEOI), the £9 million will support 12 tech projects that enhance the ability to monitor Earth’s atmosphere and measure critical emissions such as carbon dioxide, methane, and nitrogen dioxide.

Among those involved in the 12 projects are several Scottish-based institutions and companies, including the University of Edinburgh, the University of Strathclyde, the UK Astronomy Technology Centre in Edinburgh, and Bright Ascension, the Dundee-based space software company.

To read more, click here.

£3M Semiconductor Chip Research Facility at University of Glasgow

A major new grant will allow the University of Glasgow to build one of the UK’s most advanced research facilities for silicon chip integration and packaging.

The Engineering and Physical Sciences Research Council’s Strategic Equipment Grant scheme will provide £3m to help the University establish ANALOGUE – the Automated Nano AnaLysing, characterisatiOn and additive packaGing sUitE.

ANALOGUE will enable the rapid prototyping and characterisation of a wide range of semiconductor devices. New developments prototyped at ANALOGUE could find applications in biomedical implants, sustainable and biodegradable sensors, and quantum computing interfaces.

To read more, click here.

Dundee Innovation Lab Secures £1.1M Funding Boost

The Levelling Up award was made Thursday 9th May by Jacob Young, Parliamentary Under Secretary of State (Levelling Up), on a visit to the University. It will be used to facilitate a dedicated space in Dundee for the integrated delivery of education in law and technology.

The new venture will bring together students, staff and legal practitioners to collaborate on developing innovative products and services for legal, and other professional services, companies.

To read more, click here.

Scots Unis to Take Part in £3.5M Project to Reduce AI Harm

Four Scottish universities are supporting a new project to tackle emerging concerns about generative and other forms of AI currently being built and deployed across society.

Backed by £3.5m in funding from Responsible AI UK (RAi UK), the project is called Participatory Harm Auditing Workbenches and Methodologies (PHAWM).

Researchers from the University of Glasgow will lead the new project, with support from colleagues at the University of Edinburgh, Strathclyde, and Stirling, as well as the English universities of York, Sheffield, and King’s College London.

To read more, click here.

Initiatives for Next-gen Manufacturing in Scotland Get £14M Boost

A trio of manufacturing-oriented research initiatives, led by the National Manufacturing Institute Scotland (NMIS), have received a £14 million funding boost through the Glasgow City Region Innovation Accelerator programme.

The three projects aim to accelerate productivity and sustainability across local manufacturing and engineering specialists, with smaller businesses working alongside partners including Boeing, SSE Renewables, Howden, Thales, and Babcock.

The projects are supported with £5.4m from the UK government, and up to £8.6m from industry partners.

To read more, click here.

Scots Medtech Spinout Nami Surgical Secures £3.2 Million

Nami Surgical, the Scots medtech company and spinout from the University of Glasgow, has secured £3.2 million in investment and grant funding.

St Andrews-based impact investment firm Eos led the seed £2.5m round alongside the Investment Fund for Scotland, which is managed by UK private equity firm Maven and delivered by British Business Bank, Scottish Enterprise, and SIS ventures.

The spinout has also separately been awarded a grant amounting to £700,000 from Innovate UK, the United Kingdom’s national innovation agency.

To read more, click here.

Scots SMEs Urged to Apply for £120M Energy Decarbonisation Framework

Scottish businesses in the energy, renewables, and retrofitting sectors can put their names forward to secure a spot on a new major framework worth up to £120m over four years to support the delivery of crucial retrofitting and decarbonisation works and services.

The new retrofit and decarbonisation framework extends beyond public buildings, encompassing both domestic and non-domestic requirements, offering an opportunity for businesses of all sizes, particularly smaller firms, to tender for these vital works.

To read more click here.

2i Testing Lands Eight-figure Private Equity Investment

2i Testing received a funding injection from London-based private equity firm Rockpool Investments for an undisclosed eight-figure sum.

Rockpool typically provides funding in the £5-15 million range, meaning this round is likely between £10-15m.

The funding will bolster 2i as it eyes a turnover surpassing £50m in the coming years, a sizable goal, but the company has already seen an annual turnover of £20m.

To read more, click here.