THE British Business Bank’s Investment Fund for Scotland has provided over £10m of funding to smaller businesses in Scotland its first year.
After launching in autumn 2023, 26 businesses have received support to date, involving a mix of both debt and equity funding deals to enterprises across the country.
The investment fund for Scotland aims to improve access to finance and boost the Scottish economy, with loans from £25,000 to £2m and equity investment up to £5m available to help small and medium sized businesses to start up, scale up or stay ahead.
Dental biotechnology firm Calcivis, luxury skincare treatments provider The Aesthetics Club, and dog-friendly Stockbridge cafe Sip & Bark are just some of the businesses that have been supported by the fund over the past year.
Three dedicated fund managers, DSL Business Finance, The FSE Group and Maven Capital Partners, were appointed to manage separate parts of the £150m fund.
Mark Sterritt, director of nations and regions funds at the British Business Bank, said: “Scotland has a thriving small business community, and it is fantastic to see the impact that our fund has made for so many businesses in just 12 months.
“Reaching £10m of equity and loan funding is a significant milestone, and it has helped to unlock significant opportunities for business owners, from expanding teams and developing additional products to securing new premises.
“The fund was established to improve access to finance and support growing businesses with investment strategies that best meet their needs, regardless of who they are or where they are based.
“So far, we have supported firms in technology, life sciences, professional services, hospitality, and more, but this is only the tip of the iceberg.
“The £150m fund has the potential to unlock even more opportunities for the businesses underpinning local jobs and economies all over Scotland, and we look forward to building on this promising start.”
The anniversary of the investment fund has seen Edinburgh-based Ingenza Ltd, a leading biotech research business, secure funding to double its capacity and create up to 20 new jobs.
Delivered via The FSE Group, the £2m loan will support the fit-out of new commercial premises, enabling Ingenza to double its office and lab space and meet the growing demand in the pharmaceutical research and development market.
Ian Shott, chairman of Ingenza said: “This investment enables a crucial step forward for Ingenza. The pharmaceutical R&D market is growing rapidly, and we are well-positioned to capitalise on this growth.
“By doubling our capacity, we can enhance our offerings, especially in the area of ‘First In Human’ drug development testing.”
Mark Sterritt added: “There has been growing momentum around life sciences in Scotland for some time, and it is great to support a key player such as Ingenza with funding to implement its growth strategy.
“Innovation is one of the priority areas of the fund, and Ingenza is a welcome addition to the portfolio of high-growth businesses that we are already working with, all at the forefront of cutting-edge science and technology.”
