Investment in fast-growth Scottish firms 'slows'
Investment in fast-growth Scottish businesses slowed in the first quarter of 2021, research by KPMG has found.
A total of 21 venture capital (VC) deals were agreed in the first three months of the year, down from 23 in the last quarter of 2020. The combined value of the deals also fell, from at least £97.6m to at least £64.3m. The quarterly drop contrasted with the UK as a whole, which saw a record £5.1bn invested in fast-growth firms. Seven of the Scottish deals were for Glasgow-based firms, followed by five in Edinburgh and three in Aberdeen. The fall follows a year when the entrepreneurial "scale-up" sector saw record levels of investment and deals in Scotland. 'Golden opportunity' Amy Burnett, KPMG senior private enterprise manager in Scotland, said the first-quarter figures were "relatively subdued and disappointing", but added that it was clear investors still had an appetite for Scottish scale-ups. "To some extent, we bucked the global trend towards the end of 2020, with significant deal volume and value, and we're now seeing that steady off and balance itself out," she said. "Once again, the data demonstrates that investors are keen on Scotland's increasingly key sectors - low-carbon energy, pharma and tech. "For entrepreneurial business leaders, that provides a golden opportunity to adapt and embrace future opportunities."