95% of Scotland’s tech startups claimed that they would be seeking additional funding to help their growth in 2017, while 85% of respondents conceded that the tumultuous political backdrop was causing concern.

But despite these worries, the survey found great unicorn-creating potential among Scotland’s early-stage companies, an ecosystem encouraged by the successes of previous startups such as Skyscanner.

Dr. Ben Spigel, Lecturer in Entrepreneurship at University of Edinburgh Business School, said:  “Scotland already has one of the most vibrant and exciting entrepreneurial economies in Europe.

“The exit of its two unicorns, Skyscanner and Fanduel, should only help to cement this by creating and inspiring a new generation of expert mentors, founders, advisors, and investors.”

76% of Scotland’s tech firms claimed that they were aiming to increase customer revenues this year, while 67% classed themselves as ‘revenue-generating’, compared to 33% who considered their state as ‘pre-revenue’.

Steve Ewing, Director of Operations at Informatics Ventures, said: “It is encouraging to see that our most promising young companies remain confident about their growth prospects in 2017 and the years ahead in spite of concerns around funding and an uncertain political environment.”

However, while 14% of respondents said they did not have concerns about the current political climate, most conceded that they had reservations surrounding Scotland’s politics. 44% stated that they were more concerned of the effects caused by Brexit than IndyRef2, while 25% said the opposite. 17% of survey respondents reported being apprehensive about both in equal measure.

According to the survey, Scotland’s startups recognise these challenges mainly surround markets and talent. In some areas firms seem poised to adapt, with 50% of survey respondents citing North America as their primary target market, followed by Europe at 18%. However, 42% of respondents conceded that their primary concern was the ability to attract and hold talent, including non-UK nationals.

Dr. Spigel said: “It’s no surprise that our entrepreneurs are concerned about the political landscape – there’s a real risk Brexit will make it harder for Scotland’s entrepreneurs to find the best tech and scale-up talent.

“These findings show just how essential it is for the Scottish Government, universities, and colleges to concentrate building a skilled and energetic workforce to support the growth of the country’s tech startups and scale-ups.”

According to the survey, Scotland’s universities and Government support are viewed as among the biggest benefits for basing business internally. 21% of survey respondents cited the nation’s universities as the greatest advantage that Scotland offers, while 18% said it was Government amelioration. Other positives include the ability to attract talent (14%) and Scotland’s advisory network (14%) for investors.

Susanne Mitschke, CEO and co-founder of MindMate and an alumni of EIE, said: “The survey is absolutely promising to position Scotland as a leading tech hub. Specifically, with great university and governmental support, Scotland is a “paradise” for starting up.

“As a founder from Germany, I am personally nervous about Brexit, which is also reflected by other entrepreneurs. I also see the Scottish funding gap and the gap of tech talent as a concern, also in the light of Brexit.

“Despite this, I strongly believe that Scotland is well equipped to become the most entrepreneurial society in the world.”

Engage Invest Exploit 2017 will be hosted this Wednesday and Thursday at the Edinburgh International Conference Centre.