Mark Sterritt

While there’s no doubt that Scotland’s entrepreneurial spirit is thriving, the funding landscape has historically posed a challenge for businesses of all sizes. This is where initiatives like the £150 million Investment Fund for Scotland play an important role. In its first year, the fund has supported more than 26 ambitious businesses across a wide range of sectors, providing much-needed financial backing for expansion, innovation, and resilience.

From Highland Hilly Huts, a tourism enterprise in Inverness, to Panther M*lk, Glasgow’s emerging oat milk cocktail brand, and Scotmas, a second-generation, family-owned water treatment and disinfectant company based in Kelso, the fund’s impact spans both geography and industry, supporting businesses at various stages of growth.

One notable success is Ingenza, a biotechnology firm in Edinburgh that recently secured a £2m loan to double its capacity, create 20 new jobs, and cement its position at the forefront of pharmaceutical research and development. Stories like this demonstrate how targeted funding can make a real difference – not just for individual businesses, but for local economies too, where the right type of support plays a key role in addressing market needs and fostering job creation.

Access to finance is a challenge that isn’t easily solved, particularly for businesses outside of the central belt. With loans ranging from £25,000 to £2m and equity investments up to £5m, the Investment Fund for Scotland aims to tackle regional disparities by providing tailored financial support to businesses across the country, helping them overcome geographical barriers and seize growth opportunities that might have otherwise been out of reach.

But the fund’s role extends beyond providing financial backing, it was also established to address historical imbalances in the investment landscape. For too long, underrepresented groups, including women-led businesses, have faced significant barriers in accessing the funding they need to grow. By actively supporting these groups, the Investment Fund for Scotland is changing the narrative, promoting inclusivity, and driving a more equitable business environment that reflects Scotland’s diverse entrepreneurial spirit.

A key part of this progress can be attributed to our team of experienced fund managers – Maven Capital Partners, The FSE Group, and DSL Business Finance. Their collaborative efforts have not only attracted additional investment into Scotland but have also expanded the fund’s impact. By drawing in new investors and encouraging more activity in Scotland, they are helping to create a more dynamic and competitive financial ecosystem.

As the fund moves further into year two, its momentum shows no signs of slowing down. Increased lending, greater sectoral reach, and further collaboration with co-investors are all priorities for the next 12 months.

At its core, the Investment Fund for Scotland is more than just a source of funding – it’s a catalyst for growth. By empowering businesses and addressing systemic funding gaps, it is helping to unlock Scotland’s economic potential and ensuring that smaller businesses remain at the heart of the country’s future prosperity. We encourage any businesses looking to scale or expand to explore the range of funding options available.

After a strong start, the fund is poised to make an even greater impact in the years to come, creating opportunities that benefit not only businesses but also communities across Scotland.

Mark Sterritt is director of nations and regions investment funds at the British Business Bank