The ‘Early Assessment Report’ undertaken by an independent research company by SQW found that the fund had provided £31.6m of investment, across the three sub-funds (equity, debt and smaller loans), to 75 businesses, helping to address local finance gaps and increase the availability of funding for smaller businesses by September 2025.

It found evidence that the fund is supporting companies that may otherwise have struggled to secure investment, while also attracting additional private sector finance into the region.  The fund has leveraged £33.3m of private sector investment, securing £1.05 of private sector leverage for every £1 invested.

IFS was launched in October 2023 in response to identified gaps in the supply and diversity of finance available to businesses across Scotland. The £150m fund comprises three finance options, delivered by dedicated fund managers: smaller loans of £25,000 to £100,000 managed by DSL Business Finance; debt finance of £100,000 to £2m, managed by The FSE Group; and equity finance of up to £5m, managed by Maven Capital Partners.

The evaluation found evidence that IFS is helping to address these finance gaps, with businesses supported across a broad range of sectors. Professional, scientific and technical activities accounted for 17% of firms supported (13 businesses), followed by wholesale and retail trade at 16% (12 businesses) and manufacturing at 13% (10 businesses).

The latest figures for June 2026 show that the fund has invested £43.6m into 95 businesses and has reached every region of Scotland. 

The findings form part of SQW’s independent evaluation of the British Business Bank’s wider £1.6bn Nations and Regions Investment Funds programme, which comprises six regional funds across Scotland, England, Wales and Northern Ireland.

By September 2025, the wider programme had invested £294m through 951 investments to 877 businesses, attracting £233m of private sector investment. Across the programme, 81% of surveyed businesses reported that they would either have been unable to secure finance without the funds or would have secured funding on a smaller scale or over a longer timeframe.

The six Nations and Regions Investment Funds evaluated were the Northern Powerhouse Investment Fund II, Midlands Engine Investment Fund II, South West Investment Fund, Investment Fund for Scotland, Investment Fund for Wales and Investment Fund for Northern Ireland. 

Adam Kelly, managing director of debt & regional funds at the British Business Bank, said: “This independent evaluation highlights the important role the Investment Fund for Scotland is playing in supporting smaller businesses across Scotland. The findings demonstrate that the fund is helping businesses access the finance they need to invest, innovate and grow, while also helping to attract additional private sector investment into the Scottish economy. While the fund is still at an early stage, it is encouraging to see strong evidence that it is supporting businesses that might otherwise struggle to secure finance and helping to create the conditions for long-term economic growth.”