The bank’s annual Nations and Regions Tracker revealed that in the first six months of 2025, Scotland recorded 87 equity deals with a combined investment of £226 million. Among this, 16 equity deals involved university spinouts, representing 18% of all UK spinout activity. 

Despite a fall in the total deal volume and investment value compared to the same period in 2024 (-19% and -23%, respectively), Scotland continued to punch above its weight in terms of the share of investment that smaller businesses secured. Deals in Scotland accounted for 11% of total UK equity investment in small businesses - almost double the proportion of the UK’s small business population based in Scotland, which stands at 6%.

In 2024, Scotland was ranked the highest of the UK’s regions and devolved nations in terms of equity deal volume growth, up 13.6% from 2023. The report also shows that Scotland recorded double the number of equity deals per 100 high-growth enterprises (28) compared to the UK average outside of London (14) between 2022 and 2024, ranking second only to the capital on this measure. Scotland also ranked third (after London and the East of England) based on equity investment value per 100 high-growth enterprises (£81m).

While UK equity markets experienced a 15.1% decline in deal volumes last year, Scotland continues to demonstrate overall resilience. However, this strength was not uniform across the country. In 2024, the Glasgow City region, Scotland’s second-largest equity hub, recorded a 5% drop in deal volume and a 46% fall in deal value. Addressing these inequalities, alongside the finance access gaps faced by smaller businesses, remains central to the Bank’s mission. 

New initiatives and investments are set to launch in the Glasgow City Region in 2026, including a British Business Bank dedicated Cluster Champion and additional investment for this cluster via the Investment Fund for Scotland, aimed at revitalising local equity activity and supporting inclusive growth.

Susan Nightingale, director, UK network, devolved nations at the British Business Bank, said: “It’s promising to see Scotland leading the UK in equity deal volume growth, demonstrating resilience in a challenging market.

“The ambition and drive of Scotland’s high-growth businesses are unmistakable, and our Investment Fund for Scotland is already unlocking exciting new opportunities for companies across the country with over £26m of funding agreed so far.”

Demand for external finance among Scottish smaller businesses also remained strong. In 2024, 43% of smaller businesses in Scotland used external finance, just below the UK average (45%). Borrowing intentions also improved, with 15% planning to borrow or renew finance agreements, up from 11% the previous year and the second highest in the UK.

Alongside this, Scottish businesses demonstrated a high level of financial sophistication, with 57% likely to seek external advice if they needed finance.

In 2024, concerns about economic uncertainty among Scotland’s smaller businesses eased slightly, with 57% perceiving the trading environment as presenting more threats than opportunities, down from 62%.

Mr Nightingale added: “While economic challenges remain, the appetite for external finance and the willingness to seek expert advice are positive signs for Scotland’s business community.

“We encourage all ambitious businesses, wherever they are based, to explore the support available through the Fund and our wider programmes.”