Publication - Progress report
National Innovation Strategy: Scorecard (2026 Update)
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 third annual update to the scorecard, Scotland’s innovation performance is compared to UK and global peers.
4. Risk capital (deals under £10 million)
Ecosystem:
Convert
Performance assessment:
Performance worsening
At a glance
- In 2025, Scotland recorded 333 deals under £10 million, up 4.06% on 2024. Their combined value was £357 million, down 3.25% nominally and 6.62% in real terms.
- Deal numbers remained below their 2020 peak, while nominal deal value remained below its 2021 peak.
- In 2025, the UK retained its position as the most active European venture capital market coming in after the US and China.
What this indicator measures
- 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 £10 million, categorised as deals below £2 million and deals between £2 million and less than £10 million.
- Performance assessment is based on real terms performance of total value of risk capital.
Current Performance
- In 2025, 333 deals were valued at less than £10 million each, up 4.06% on 2024. Their total value was £357 million, down 3.25% in cash terms and 6.62% in real terms.
- 281 of these deals were valued below £2 million, totalling £126 million.
- 52 deals were valued between £2 million and £10 million, totalling £231 million.
- 56 deals were for university spinouts, with a total value of £194 million.
Key data table
| Deals breakdown | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Number of deals below £10m (Count) | 438 | 426 | 412 | 358 | 320 | 333 |
| Total value of deals below £10m (£m, cash) | 309 | 445 | 425 | 415 | 369 | 357 |
| Total value of deals below £10m (£m, 2025 prices) | 376 | 539 | 487 | 447 | 382 | 357 |
Source: Scottish Enterprise. Note: Historical figures may be revised as deals are identified.
UK comparison
- The UK had 5,428 deals at £10 million or less in 2025, a drop of 6.9% from 2024.
- This represented a nominal decrease of 17.4%, from £6.8 billion to £5.6 billion.
- Compared to other UK regions, Scotland ranks 4th, topping the 2nd quartile.
International comparison
- In 2025, the UK retained its position as the most active European venture capital market, coming in after the US and China globally.[12]
Key charts and insights
Source: Scottish Enterprise
Source: Scottish Enterprise
About the data
- Current dataset: Investing in ambition - Scotland's risk capital market: benchmark analysis (released June 2026).
- Next release: To be announced (expected June 2027).
Contact
Email: innovation@gov.scot