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Scottish Venture Fund

Support provided by Scottish Enterprise Highlands and Islands Enterprise South of Scotland Enterprise

What does this involve?

The Scottish Venture Fund invests in early-stage businesses with high growth potential that are seeking funding to develop new products, services, business models or markets.

You’ll need to get an offer of funding from a private sector investor before you can apply to this fund to fill the gap in your investment package.

Once you have an investor, you can approach Scottish Enterprise with details of the deal. They'll work with both new private sector investors and ones they already know.

You'll need to provide:

  • details of your private sector funding, including sources and terms
  • the amount you need from the Scottish Venture Fund
  • a detailed business plan with key financial information, including at least a 3-year forecast and historic information
  • details of what the funding will be used for

Scottish Enterprise will then review the potential economic benefits to Scotland and fully assess the investment opportunity. They'll propose terms for their investment and carry out due diligence.

Once the investment is completed, Scottish Enterprise's portfolio management team will work with your management team and the private sector investors to maximise the outcomes of the investment for everyone involved and the Scottish economy.

Am I eligible?

To be eligible for investment from the Scottish Venture Fund, your company must:

  • be a commercially viable business with high growth potential
  • operate or be planning to operate in Scotland at a level that matches the investment you've requested
  • demonstrate the economic benefits to Scotland that could result from this investment
  • show which other funding sources you've explored
  • be a small to medium-sized enterprise
  • have, be developing or be committed to developing a net zero plan
  • demonstrate or be working towards the 7 key principles of fair work: employee voice, security, respect, opportunity, fulfilment, flexible and family working, and the rejection of fire and rehire practices

The fund is not sector-specific, but certain sectors are restricted. Companies in these sectors may be considered if they have developed an innovative way to either address a gap or create new markets in the sector.

Restricted sectors include:

  • real estate or property development
  • social and personal services
  • pubs, clubs and restaurants
  • retail
  • events
  • local services
  • banking and some financial services and insurance
  • motor vehicles
  • professional services

What does this cost?

There is no cost to apply.

This fund can invest alongside experienced private sector investors on equal terms, and will provide up to a maximum of 50% of the total funding package. You will need to get funding from a private investor before you can apply.

Scottish Enterprise will only invest if there is a gap in funds, so you should seek to maximise your private sector investment first. Funding is available in amounts typically from £100,000 up to £2 million, as part of a total deal size that typically ranges from £200,000 to £10 million.

Who is this for?

High growth potential, early-stage businesses that need funding to develop products or markets.

How long does this take?

Scottish Enterprise will contact you within 5 working days after you submit your initial enquiry form.

Processing time will depend on your application and the investment review process.

Important information

This fund provides equity - that is, Scottish Enterprise will subscribe for shares.

Scottish Enterprise is a 'gap' funder - so if you're looking for investment, you will need to secure funding from a private investor first.

The fund typically provides from £100,000 up to £2 million, as part of a total deal size that typically ranges from £200,000 to £10 million.

Next steps

Submit an enquiry and an adviser will be in touch to discuss your needs. 

Support provided by Scottish Enterprise Highlands and Islands Enterprise South of Scotland Enterprise