Scottish entrepreneurs have enjoyed a modest uplift in funding for new businesses but the same research shows fewer established companies benefiting from financial support to help them grow.
According to the latest Barclays Entrepreneurs Index, the total amount of venture capital (VC) available to Scottish firms in 2016 was up by 9%, by £1million to £12million, compared with the year before.
The latest figure is still nowhere near the £53million funding boost seen in 2014, while the 25 businesses receiving VC funding last year was two fewer than in 2015.
And the 171 high-growth firms receiving funding during 2016 – just 4% of the UK total – was 50 fewer than the year before, with the value of VC support plunging by £28million to £68million.
Barclays says Scotland is currently home to 58 private equity-backed companies, down from 72 year-on-year but still outperforming most other parts of the UK.
John Godfrey, director, wealth and investments, Barclays in Scotland, said: “It’s positive to see funding in our region has picked up on last year, however, despite this uplift, investment is down on previous years and the number of high-growth companies has fallen.”
Scottish entrepreneurs benefit from slight increase in funding for new firms
