Scottish startups are gaining global attention, according to a new report, with early-stage funding attracting a host of new international investors into the country’s innovation market.

The latest Scotland Newcomer Investors Report from startup intelligence firm Young Company Finance (YCF) found a 20% increase in new investors making their first forays in a Scottish firm, rising from 61 in 2022 to 73 in 2024.

That figure marks the highest number of new investors recorded since the post-Covid peak of 105 back in 2021, which YCF said is evidence of Scotland’s expanding reputation as an attractive investment destination. 

The report, which tracks investors making their first investment in a Scottish startup, found that while the average deal size in Scotland dipped from £1.2 million to £1 million, rounds backed by these new investors bucked the trend, climbing 28% to £3.86 million, up from £3.02 million the previous year. 

Despite an overall decrease in the number of funding rounds, going from 44 to 39, newcomer investors maintained a 29% share of all deals, consistent with 2023 figures.

However, existing Scottish investors have also played their part. More than a quarter of newcomer-backed investment rounds involved at least one of Scotland’s angel networks, with Angel group Equity Gap taking part in six of the thirty-nine raises.

Last year, the Scottish firms attracting the most investment were so-called ‘healing’ companies – think healthtech and life sciences – which saw £68 million forked out by newcomer investors over twelve rounds, while ‘feeding’ and ‘fuelling’ firms jointly raised over £61.2 million.

Among the big-ticket rounds pulling in fresh investor interest were Edinburgh gaming startup Build a Rocket Boy’s £52 million raise in February 2024, as well as biopharma EnteroBiotix’s £27 million funding in life sciences, and spacetech Orbex’s £16.7 million capital injection, both in April last year.

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Other success stories highlighted by YCF include veterinary diagnostics company MI:RNA, which raised £3.55 million last summer, attracting five newcomer investors, as well as golf-tech firm Shot Scope, which secured £6.7 million from newcomers like Guinness Ventures and Growthdeck.

“The steady rise in newcomer investors signals growing international engagement with Scotland’s early-stage market,” said Alison Grieve, editor of YCF.

“Even in challenging market conditions, we’re seeing larger deals and sustained international interest in Scotland’s known strengths in life sciences and renewable energy, but also in the emerging consumer technologies category, which has not traditionally been a focus for Scottish investors and public funding bodies.

“The upward trajectory of newcomers suggests Scotland is becoming increasingly integrated into global investment networks, bringing not just capital but international expertise and expansion opportunities to Scottish scale-ups.”