Tech startups on a Scottish government business startup scheme have raised £66 million in public and private investment over the course of the last year, according to new figures.

The number of companies enrolled on the flagship Techscaler programme – run by the tech ecosystem builder CodeBase – have also nearly doubled in the last 12 months, according to the scheme’s annual report released today.

New figures show firms on the scheme jumped from 502 to 978, while individual entrepreneurs more than doubled from 610 to 1,411. They were able to access benefits including mentoring, training and introductions to potential investors and customers.

The £66 million figure is an increase on last year’s £52 million, representing growth of 26.92 per cent in investment terms from the previous year, meaning a combined sum of £118 million has been raised in two years.

Speaking at the Edinburgh Futures Institute, Kate Forbes, deputy first minister, said: “The Techscaler programme – which I am deeply proud to have launched just two years ago – is contributing to Scotland’s reputation as one of the best places in the world to launch a tech start-up.

“While this is a relatively young programme, what this report makes clear is that it is delivering results and helping entrepreneurs to unleash their ability to innovate, spearheading Scotland’s presence in expanding new markets.”

The capital investment comes from both private and public sources and is supporting businesses in sectors such as medical technology, artificial intelligence and space.

Further activity included two international pop-up hubs in Singapore and San Francisco to help companies penetrate global markets.

Konversable, a Glasgow AI chatbot and messaging technology company which helps companies convert enquiries into sales, was introduced to potential investors and customers at Techscaler’s Singapore pop-up in October. The company secured £300,000 investment over the year.

Stephen Coleman, CEO and co-founder of Edinburgh-headquartered CodeBase, said: “We’re proud of our collective achievements over the first two years of Techscaler, delivering strong support for our ambitious founders and startups both here in Scotland and increasingly as they target global markets, building on our position as a catalyst driving innovation, partnerships, and collaboration across the Scottish tech ecosystem.”

Catherine McWilliam, national director of IoD Scotland said: “Scotland is an excellent place for entrepreneurs to do business, as there is a real commitment to growth and many support networks to tap into. 

“The tech sector in Scotland is growing incredibly fast, thanks to initiatives like Techscaler. We welcome any positive news about opportunities for growth and available funding for Scotland’s business community. However, there are still big gaps in support for under-represented groups in the Scottish technology ecosystem, and we would like to see further investment and support in this area. Initiatives like the Lifted Project and Pathways, which support women entrepreneurs, are great examples of this in practice.”

However, the Labour Party in Scotland said more needed to be done by the SNP-led government to turbocharge the digital economy.

Daniel Johnson MSP, Shadow Cabinet Secretary for Economy, Business and Fair Work: “Whilst the Techscaler programme is a vital part of Scotland’s technology eco-system and a vital means of attracting pre-seed capital, we need to get real about the level of investment required to truly make Scotland “one of the best places to launch a tech start up.

“The Scottish Government needs to be seriously thinking about how we attract venture capital and world leading investors to help our companies at every stage of the start-up growth journey.

“This week Scottish Labour launched our technology consultation which looks at how we can provide routes to capital- connecting Scotland to key global sources of growth funding while continuing to nurture indigenous seed capital in Scotland.”

Key metrics from Techscaler’s first two years:

  • 1,411 members and 978 companies have joined Techscaler since launch, up from 610 and 502 in 2023.
  • 742 members cumulatively enrolled in education programmes at the end of 2024, up from 369 in 2023.
  • 641 members mentored in total over 2023 and 2024, up from 299 in 2023.
  • Since Techscaler’s launch, the total capital raised by member businesses has grown from £54m in 2023 to £118m in 2024.
  • 18,000+ event attendees across 2023 and 2024, nearly double the 9,500 in 2023.