Despite the uncertainty and volatility of the financial year to March 2025, Scotland’s angel investors maintained their support for Scotland’s emerging high-potential SMEs, according to the latest annual data from Angel Capital Scotland. 

Figures from Scotland’s national association for business angels show that the number of investments fell slightly to 91 from 94 in 2023-24, but the value of private capital committed increased from £100.6m to £106.4m, reflecting an increasing average deal size. Public sector co-investment provided a further £25.6m.

There was a wide range in the value of individual deal sizes from around £20k to over £4m.

The support was heavily focused on companies with proprietary intellectual property in key technology sectors, with life sciences / health, digital / software, and enabling technologies such as photonics, accounting for almost two thirds of the total.  The energy, renewable and environmental sectors also continued to grow.

Geographic distribution was nationwide including Highlands & Islands and Southern Scotland, but the national hotspot continued to be Edinburgh and Lothian.

David Grahame, executive director at Angel Capital Scotland, commented “Business angels necessarily take a long-term view rather than overreacting to current events and it is good to see our members actually further increasing their commitment to supporting Scotland’s most exciting young companies, many of whom are showcased at the YCF Conference.

“At the same time, the increasing range of institutional and other co-investors is an encouraging sign of a maturing ecosystem.”

More good news for Scottish business investment 

The latest figures from Angel Capital Scotland come just a week a after Beauhurts releasing a Scotland-specific blog detailing the country’s investment fortunes, as told in the firms much larger State of UK Investment report.

The research found that while the number of deals dropped 6% from Q4 2024, total investment value soared 108%, reaching £211 million across 99 rounds – 7% of all UK deals. This mirrors a broader UK trend of larger, later-stage funding, yet Scotland stands out with a particularly strong venture-stage pipeline, defying the national dominance of seed rounds.

Funding is more diversified in Scotland than the UK overall. While application software leads (26% of deals), it’s well below the UK average of 48%. Electronics hardware follows at 18%, with standout raises from firms like Neuranics. Renewable energy (12.4%) also shows strong momentum, reinforcing Scotland’s cleantech ambitions.

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Despite robust growth, gender diversity is worsening. All-female founding teams accounted for just 3.7% of deals in Q1 2025—down from 6.5% in Q4 2024. Mixed-gender teams also dipped below 10%, while all-male teams dominate at 83%. This decline from 2024’s already low 7.2% highlights a growing inclusivity gap.

Scotland’s investment ecosystem remains resilient and growth-oriented. But the stark gender imbalance poses critical challenges for equitable access to capital—especially as more funding flows to scale-ready firms.

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