Start-ups to benefit from new £38m Scottish Government fund
Start-ups whose routes for investment and growth have been impacted by COVID-19 will be eligible for support through a new £38 million package announced by the Scottish Government today.
The package, to be managed by Scottish Enterprise, will include three levels of support to meet the needs of the most promising businesses at different stages of early growth:
- £3 million allocated as grants of up to £50k plus advisor support for start-ups identified as having the most significant potential to grow and attract future investment;
- a competitive £25m Early Stage Growth Challenge Fund to provide successful applicants with a mix of grant and investment funding up to a maximum of £300k; and
- an additional £10m for Scottish Enterprise’s existing Scottish Investment Bank co-investment funds to help stimulate private investment and support businesses that need more significant levels of funding to grow rapidly.
Economy Secretary Fiona Hyslop said: “Scotland’s entrepreneurs and innovators have always fuelled the nation’s economic growth so we must support them now to ensure that their energy and ideas can deliver good new jobs and help us plot a path to recovery.
“The creation and growth of businesses in exciting emerging sectors such as life sciences, digital technologies and space create high value jobs and accelerate international investment in Scotland.
“The economic impact of COVID-19 has been enormous, and the Scottish Government has so far spent more than £2.3 billion in support. Early stage businesses are not immune to this and have been impacted by a challenging investment market which restricts their ability to grow, innovate and compete internationally.
“This new package meets these challenges head-on, providing young and innovative businesses with the most comprehensive and generous package of support available anywhere in the UK.”
Steve Dunlop, CEO of Scottish Enterprise, added: “This package is the result of insight gathered by the Scottish Government and Scotland’s economic development agencies through direct engagement with partners and companies operating in the early-stage high-growth market.
“This field is home to many promising companies whose innovative products and services are aligned with our vision of a sustainable and inclusive economy. Pertinently, a considerable amount of them are immersed in work with the capacity to drastically improve the health and wellbeing of people the world over.
“We believe this additional funding from the Scottish Government will help remove the financial obstacles created by COVID-19 that threaten their growth. With our backing, we hope our early stage companies will fulfil their potential and bolster Scotland’s economic recovery while having a positive impact on businesses and individuals internationally.”