Scottish Venture Fund

Support provided by Scottish Enterprise Highlands and Islands Enterprise South of Scotland Enterprise

What does this involve?

The Scottish Venture Fund invests in companies from start-ups, early stage to expanding businesses seeking funding to develop new products and/or markets. First, you’ll need to secure an offer of funding from a private sector investor before you can approach Scottish Enterprise to consider the gap in your investment package.

With an investor secured, you can approach Scottish Enterprise with details of the deal. They will work with private sector investors both known and new to Scottish Enterprise.

The following information would be required:

  • details of the private sector funding secured, sources and terms
  • the amount being sought from the Scottish Venture Fund
  • a detailed business plan including key financial information (at least three-year forecasts and historic information)
  • what the funding will be used for

They will then conduct a review of the potential economic benefits to Scotland and undertake a full appraisal of the investment opportunity. Terms of the investment will be proposed and due diligence undertaken.

Once investment is agreed, the portfolio management team will work alongside your management team on an ongoing basis to help shape your strategy and maximise the outcomes of the investment for the company, the investors and the Scottish economy.

Am I eligible?

To be eligible for investment from the Scottish Venture Fund your company must:

  • be a commercially-viable business
  • have, or be in the process of developing a significant operational presence in Scotland which is proportionate to the levels of investment being sought
  • demonstrate the economic benefits to Scotland that could result from the investment
  • demonstrate which other funding sources have been explored
  • fall within the EU definition of a Small to Medium Enterprise (SME)

 

The fund is not sector-specific but certain sectors may be restricted, including:

  • real estate/property development
  • social and personal services
  • pubs, clubs and restaurants
  • local services
  • banking, some financial services and insurance
  • motor vehicles
  • nuclear decommissioning
  • professional services
  • retail

 

Other activities may be restricted from time to time, in line with European Regional Development Fund (ERDF) requirements.

What does this cost?

There is no cost to apply.

Who is this for?

This is for businesses seeking funding to develop products and/or markets.

How long does this take?

This will depend on your application and the review process.

Important information

This fund can invest alongside sophisticated private sector investors on equal terms, up to a maximum of 50% of the total funding package on a commercial basis.

Scottish Enterprise is a 'gap' funder, so you should seek to maximise private sector investment first. The Fund can provide from £10,000 up to £2 million, as part of a total deal size typically ranging from £20,000 to £10 million.

The fund is primarily equity-based (Scottish Enterprise will subscribe for shares), however, it will consider other forms of investment.

Scottish Enterprise take a flexible approach, ensuring the most appropriate solution is provided for the companies’ circumstances, working alongside the private sector investor(s).

If you're looking for investment, you will need to secure funding from a sophisticated private investor first.

Next steps

Submit an enquiry and an adviser will be in touch to discuss your needs. 

Support provided by Scottish Enterprise Highlands and Islands Enterprise South of Scotland Enterprise

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