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Scottish venture-capital investment soars in Q3
Venture capital (VC) investment into Scotland’s start-up and scale-up businesses increased in the third quarter of 2025, according to the latest KPMG Private Enterprise Venture Pulse report.
Scottish businesses raised £116.1m in the third quarter of 2025 – up more than 200 per cent from £36.2m in Q2.
A total of 23 investments were completed between July and September; the same number as Q2, signalling the sustained confidence of VC investors in supporting Scotland’s small-business ecosystem.
Software dominated, with almost a third (30 per cent) of Scottish VC investments in Q3 made into the sector.
The increase in VC investment comes as KPMG’s recent mid-year ‘Private Enterprise Barometer’ found that the appetite for Scottish businesses pursuing equity finance is gaining momentum, with more than a quarter (29 per cent) of the country’s businesses now open to VC investment.
Amy Burnett, KPMG emerging giants Scotland lead, said: “The quality, resilience and ambition of Scotland’s scale-up community continue to stand out, with another strong quarter for VC investment.
“Across sectors including technology, life sciences, energy and manufacturing, Scottish businesses are demonstrating real innovation and global growth potential. This diversity and drive are helping to attract investors’ attention and strengthen Scotland’s position as a leading hub for enterprise.
“We’re proud to support Scotland’s scaling business community. In particular, we run ‘Access - Founded by Her’, which champions female entrepreneurs and helps them access the expertise, networks and funding needed to scale their ventures. It’s this kind of collaboration that will continue to power Scotland’s next generation of fast-growing businesses.”
Photography: KPMG UK, of Amy Burnett
