Economic development agency Scottish Enterprise generated a record amount of income from its investments in early-stage companies during the year to April, but the value and volume of new deals fell following the withdrawal of Covid support funding.
The agency, which has been investing alongside the private sector in young firms since 2003, generated £106.6 million from the sale of stakes in companies such as Edinburgh-based Current Health and Smarter Grid Solutions, a spin-out from the University of Strathclyde. That was up from £56m previously.
It was also the strongest year on record for attracting money from overseas, with foreign investors accounting for £164.4m of the £257m leveraged from the private sector.
But the value of new investments by Scottish Enterprise fell to £50.7m from £78m previously, when funding was enhanced by the July 2020 launch of the Scottish Government’s £38m programme to support early-stage firms hampered by the pandemic. Awards from this were finalised in November 2020.
READ MORE: 'Record returns' at Scottish Enterprise
The number of companies receiving support from Scottish Enterprise, headed by chief executive Adrian Gillespie, also fell to 102 against 177 previously.
Mr Gillespie said it was an “exceptional year” for the agency’s early-stage investment activities. This included what he described as “a healthy number of deals” as well as the increase in returns from the maturing portfolio.
“It’s hugely gratifying to see the businesses we work with go from strength to strength, attracting further investment, and developing innovative products, services, and business models, providing high value employment opportunities right across Scotland,” he said.
“Our support for fast growing, innovative companies is particularly important at a time when there are considerable challenges facing many businesses. We very much recognise the importance of attracting new investment to the future prosperity of Scotland.”
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