Scottish National Investment Bank: review of performance 2026

Investment terms

72. One question that has been raised with me both by investees and by co-investors in relatively early stage businesses is whether the Bank’s structural terms are fully aligned with its positioning as a relatively high-risk investor seeking to crowd others in: or whether in some respects, in particular the downside protections, they might in fact be more onerous than the circumstances require.

73. It has been suggested by some that this could have the unintended effect of changing expectations and behaviours in the wider investment ecosystem, for example by putting off international angel or venture capital investors, who have a very different culture and approach. If that were indeed the case, this could have potentially negative impacts for the broader private investment market in Scotland.

74. For obvious reasons, I have not been in a position to examine the underlying facts relating to specific investments, or to speak directly to international investors: but it seems to me that the issue merits some consideration by the Bank, in dialogue with others in the ecosystem. In that context, I was encouraged to hear about recent structured discussions between the Bank and representatives of Scotland’s angel community. I hope that this dialogue continues and yields concrete results. It would be helpful if the Bank could set out the outcomes of these discussions for the benefit of wider stakeholders.