A total of £92.3 million was raised by the country’s start-ups from October to December, up from the £80.9m raised in Q3 of last year.

The volume of transactions also grew to 25, up from 21 in Q3. This was driven by investment activity in the capital, particularly Resolution Therapeutics’ £67m funding round, which significantly boosted overall investment for the country.

Nationally, the UK raised a total of £15.5 billion in VC investment in 2024, with funding in Q4 alone increasing by more than 40% to £4.4bn. Investments in 569 businesses contributed to the end of year surge, with the increase in value driven largely by £1.1bn raised by London-based firm GreenScale. According to KPMG’s latest Venture Pulse report, the UK achieved the highest level of VC investment in Europe in 2024.

These results come just weeks after KPMG published its KPE Barometer, which revealed that over 90% of Britain’s private business owners are confident of growth in 2025.

Vishal Chopra, Scotland senior partner at KPMG UK, said: “Despite a challenging economic backdrop, the quality and resilience of Scottish businesses continues to shine through, with a strong end to the year in terms of VC investment. Edinburgh’s thriving life sciences and technology sectors have been a key driver of activity, showcasing the city’s ability to attract significant investment even in a cautious market. 

“While investors remain measured in their approach, the fundamentals of Scottish businesses remain strong, and the growing focus on innovation and sustainability has put many in a strong position to deliver VC-backed growth this year.”

Amy Burnett, UK head of KPMG’s Emerging Giants practice, added: “After a difficult Q3, it’s great to see the UK end the year as the top destination in Europe for VC investment.

“The strong rebound in Q4 has boosted optimism among investors looking ahead to the rest of 2025, with AI likely to remain at the forefront of those looking to invest.

“However, the impact of both global and domestic events such as the UK Budget measures and the new US President taking office could still contribute to a level of investor caution.”