The fund, which will begin investing in spring 2027, is designed to support the creation and growth of innovative businesses emerging from Scotland’s universities. It also aims to address a capital shortage by mobilising additional private investment.

The Bank will provide up to £65m of cornerstone capital and establish the investment platform as a central point to engage investors, founders and partners.

The fund will strengthen the journey from research and innovation to commercial success, helping university-linked businesses grow from early-stage development to scale-up. It is designed to work alongside the Bank’s existing investor network, including Scottish Enterprise, and to support the wider innovation ecosystem.

It will offer two investment strategies: the Ignition Strategy, which will fund pre-seed to seed businesses, and the Accelerator Strategy, which will contribute to Series A+ rounds, enabling companies to scale.

The Ignition Strategy will deploy early-stage capital in seed rounds of £250,000 to £1.5m. Of the Bank’s £65m cornerstone investment, £15m is earmarked for these investments. The remainder will be used in the Accelerator Strategy, which will fund rounds in the region of £2m to £8m.

David Ritchie, chief executive of the Scottish National Investment Bank, said: “Scotland’s universities are among our greatest national assets. They produce world-class research, exceptional entrepreneurial talent and breakthrough ideas that can support long-term economic transformation.

“Despite Scotland delivering disproportionate research output compared to our population, founders can struggle to access the capital and business support needed to commercialise innovation and scale successful models.

“The Scottish Universities Fund is designed to help address that gap and create stronger pathways for ambitious companies to start, scale and stay in Scotland.

“Our ambition is not simply to provide capital. It is to help build a stronger innovation ecosystem, attract additional private investment and ensure more of the value created by Scottish innovation is captured here in Scotland. This is an important step in delivering the Bank’s innovation mission and supporting Scotland’s long-term economic growth.”

Alyn Smith, Minister for Innovation, Technology and Tertiary Education, said: “By working with the Bank and our universities to draw in private capital, we are helping more of Scotland’s research become high-growth companies that start, scale and stay here. That includes areas where Scotland has real strengths, from health and life sciences to the energy transition and data and digital technologies.”

Sir Jim McDonald, Emeritus Principal of the University of Strathclyde, is co-author of Scotland’s National Innovation Strategy, a report commissioned by the Scottish Government to unlock the innovation potential of Scotland’s universities, which recommended the creation of such a fund.

He said: “The Scottish Universities Fund represents an important opportunity to strengthen the connection between research, innovation and commercial growth. By supporting ambitious founders and helping innovative companies access the capital and support they need, the Fund can play a significant role in building Scotland’s future economy.”

The Fund is sector agnostic but will focus on areas aligned with Scotland’s research strengths, including:

• health and life sciences
• energy transition
• data and digital technologies
• advanced manufacturing

Universities are not required to invest in the Fund to participate. Instead, they are invited to become strategic partners, helping strengthen the pipeline of innovation and commercial opportunity emerging from their institutions.