Though Scotland’s tech industry is in the nascent stage as compared to the other parts of the UK, its technology industry is driving the next wave of economic growth. Reportedly, it is touted to have the potential to become the UK’s Silicon Valley. Boosting this growth further, the British Business Bank has launched a new £150 million Investment Fund for Scotland.
The Investment Fund for Scotland is the second in a series of six new Nations and Regions Investment Funds being launched by the British Business Bank. It follows the launch of the South West Investment Fund in July. A total of £1.6 billion has been committed to the new funds to drive sustainable economic growth and break down barriers in access to finance.
Supports growing Scottish businesses
This additional funding is meant to help smaller businesses to prosper and thrive. The fund will drive sustainable economic growth by supporting new and growing businesses across Scotland through investment strategies that best meet the needs of these firms.
It includes a range of finance options with loans from £25K to £2 million and equity investments up to £5 million to help small and medium-sized businesses. It will help them “start up, scale up or stay ahead”.
The Bank’s Investment Fund for Scotland is touted to be the first solely UK government-backed investment fund for smaller businesses in Scotland, helping to increase the supply and diversity of early-stage finance by providing options to firms that might otherwise not receive investment. The funding is designed to help businesses with activities including expansion, product or service innovation, new processes, skills development, and capital equipment.
Louis Taylor, Chief Executive of the British Business Bank, said: “With this fund for Scottish businesses, we hope to open the doors to new opportunities for a range of smaller firms looking to get started, grow, and develop across different sectors. We know that access to finance is a key concern for small businesses and are committed to ensuring that founders from all over the country have the same prospects in terms of finance, no matter where they are based.
Scottish Secretary Alister Jack said: “It’s great news that the British Business Bank is launching its new £150 million Investment Fund for Scotland. This funding boost will be hugely important in giving smaller Scottish businesses the investment they need to grow. Scotland has some fantastic business success stories, and this new, additional fund will help create even more of them.“
Fund management trio
British Business Bank has appointed three fund managers to manage the cash. DSL Business Finance will manage the smaller loans part of the fund ranging from £25K to £100K, The FSE Group will be responsible for larger loans between £100K and £2 million and Maven Capital Partners will manage equity deals up to £5 million.
The British Business Bank will be holding a series of information roadshows aimed at people working in the small business finance ecosystem, including enterprise agencies, advisers, accountants, and more.
The first of these will be held in Inverness on October 31 with the second in Edinburgh on November 1. More towns and cities will be covered in the new year and an online version of the session will also take place on November 7.
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