The report, which tracks investors making their first investment in a Scottish company, shows an overall 20 per cent increase from 61 newcomers in 2022 to 65 in 2023, reaching 73 in 2024. Despite an overall decrease in the number of funding rounds (from 44 to 39), newcomer investors maintained their 29 per cent share of all deals, consistent with 2023 figures.

Growing international interest: The 73 newcomer investors in 2024 represent the highest number recorded since 2021 (105), demonstrating Scotland’s expanding reputation as an attractive investment destination.

Larger deal sizes: Median deal sizes for newcomer-backed rounds increased significantly by 28 per cent from £3.02 million in 2023 to £3.86m in 2024, even as overall median deal sizes across all Scottish rounds decreased from £1.2m to £1m.

Sector strengths: The report broadly categorises companies into those that are feeding, healing, or fuelling the world. 2024 continued to see Scotland’s “healing” companies attract the most investment from newcomer investors (£68m, with twelve rounds completed), with “feeding” and “fuelling” jointly raising over £61.2m in newcomer-backed rounds.

Notable deals: Major transactions attracting newcomer investors included Build a Rocket Boy’s £52m gaming industry raise (Feb 2024), life sciences firm EnteroBiotix’s £27m round, and spacetech company Orbex’s £16.7m funding.

Existing investor participation: The report also highlights the vital role of existing Scottish investors in facilitating newcomer participation. Angel group Equity Gap co-invested in 6 of the 39 rounds involving newcomer investors, while over a quarter of newcomer rounds saw participation from at least one of Scotland’s angel investor groups.

Alison Grieve, editor of YCF, said: “The steady rise in newcomer investors signals growing international engagement with Scotland’s early-stage market.

“Even in challenging market conditions, we’re seeing larger deals and sustained international interest in Scotland’s known strengths in life sciences and renewable energy, but also in the emerging consumer technologies category, which has not traditionally been a focus for Scottish investors and public funding bodies.

“The upward trajectory of newcomers suggests Scotland is becoming increasingly integrated into global investment networks, bringing not just capital but international expertise and expansion opportunities to Scottish scale-ups. Our data indicates that newcomers are targeting more established opportunities, potentially reflecting confidence in Scotland’s maturing startup ecosystem.”