The report provides the first comprehensive analysis of the Scottish angel investment market, drawing on data from Angel Capital Scotland (ACS) covering 1,753 investment deals into 509 companies.

Researchers found that £1.7 billion was invested into early‑stage Scottish companies between 1996 and 2023, with around a quarter coming from the public sector.

Investment by angel investors of £633 million leveraged a further £637m from other private investors, alongside £422m of public investment, demonstrating the effectiveness of public funding in drawing in private capital.

The study calculates an average policy cost of £12,668 per job created – a figure it states is significantly cheaper than other comparable job‑creation policy initiatives in the UK.

Report co-author, Professor Niall G MacKenzie, Head of the Hunter Centre for Entrepreneurship, Strategy and Innovation at the University of Strathclyde’s Business School, said: “This report provides clear evidence of how sustained public support for angel investment has delivered substantial economic outcomes, cost effective policy measures for innovation, company creation, and economic impact.

“Over nearly three decades, angel‑led investment has supported more than 41,000 jobs at a policy cost per job that is significantly lower than any comparable initiative, while successfully leveraging large volumes of private capital into early‑stage Scottish companies.”

The report identifies what it describes as the ‘Scottish Model’ of angel investment, in which private investors lead on investment decisions while being supported by public policy through a combination of co‑investment and tax relief mechanisms.

According to the analysis, this long‑standing public-private partnership has contributed to Scotland developing one of the most mature and established angel investment markets in the world.

The data revealed that investment has been concentrated in professional, scientific and technical activities; manufacturing; and information and communication technologies – sectors associated with innovation and high growth.

The report also presents, for the first time, a comprehensive geographical analysis of angel investment across Scotland, showing the highest levels of investment in the Central Belt, particularly along the east coast.

The report, Where angels tread: understanding the economic impact of early‑stage risk capital in Scotland, 1996-2023, was authored by Professor MacKenzie and Dr Margaret Coughtrie, an independent researcher and angel investor.

The research was supported by a British Academy Innovation Fellowship and conducted using data from Angel Capital Scotland. It was launched as part of the Entrepreneurship and Innovation Observatory – a joint initiative between the Hunter Centre and Fraser of Allander Institute at Strathclyde Business School to provide analysis of key aspects of Scotland’s enterprise and innovation performance.