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Publication - Progress report

National innovation strategy: scorecard - 2025 update

Published
25 September 2025
Directorate
Economic Development Directorate, +1 more … Chief Economist Directorate
Topic
Business, industry and innovation, Economy
ISBN
9781806431694

The national innovation strategy first published an innovation scorecard in 2023, tracking Scotland's performance against key metrics compiled from publicly available data. In the second annual update to the scorecard, Scotland’s innovation performance is compared to UK and global peers.

View supporting documents Supporting documents

5. Risk Capital (Deals Under £10 million)

5.1 Ecosystem

  • Convert

5.2 Performance Assessment

  • Performance Worsening

5.3 Description

  • Equity investment is an effective indicator of innovation which is closer to the market. Although not all ‘deals’ are innovation driven, risk capital is considered a good proxy for innovation as evidence shows top sectors for deals are generally those associated with high levels of innovation, with university spinouts particularly associated with innovation. The term "deal" describes risk capital obtained during an announced or unannounced equity investment rounds.
  • The number and value of risk capital deals in Scotland are tracked by Scottish Enterprise, including deals below £10m, categorised as deals below £2m and deals between £2m and less than £10m.
  • All figures are in cash, nominal terms. Performance assessment based on real terms performance.

5.4 Time Series

  • Following a similar trend as the UK overall, the number and value of risk capital deals under £10 million in Scotland continued to decline in 2024, from peaks in 2020 and 2021, respectively.
Chart 12: Value (and Number) of Risk Capital Deals less than £10 million in Scotland, 2019-2024, Cash Terms
A combined bar and line chart showing Scotland had 293 deals under £10m, valuing £331m total; the sum of £116m in deals less than £2m and £215m in deals between £2m and less than £10m.

5.5 Current Performance

  • In 2024, there were 293 deals under £10m, valuing £331m. Of which:
    • 244 deals were below £2m, with value of £116m.
    • 49 deals were between £2m and less than £10m, with value of £215m.
    • 52 deals were for university spinouts, valuing £176m.

5.6 Previous Year Performance

  • The number of sub-£10m risk capital deals declined by 15% in 2024 from 345 in 2023.
  • The value of deals in Scotland below £10m fell by 17% from £398m in 2023 (a 20% decrease in real terms)
  • The largest decrease was in deals between £2m and less than £10m.

5.7 UK Regional Benchmark

  • Scotland ranks 5th in terms of the total value of all deals (of any value).
Chart 13: Value (and number) of total deals, 2024, Cash Terms
A combined bar and line chart showing Scotland ranks 5th out of the 12 regions in terms of total deal value.

5.8 International Benchmark

  • Limited international comparability.
  • In 2024, the UK retained its position as the most active European venture capital market, coming in after the US and China globally (Dealroom.co, Venture Wrapped 2024, Jan 2025).
  • Scotland has dropped one position compared to the UK, in value and number of deals.

5.9 About the Data

Contact

Email: innovation@gov.scot

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