The Scottish Government has announced new funding to support entrepreneurs starting a business as part of the draft Scottish Budget for the next financial year.
£15m will be allocated to Scottish startups. Holyrood has also ringfenced £4m of this pot to provide support for female entrepreneurs.
The announcement follows the launch of a UK government-backed £250m funding pool for female-led firms in England, Wales, and Scotland at the end of November.
Deputy First Minister Kate Forbes said: “This budget commitment demonstrates that the Scottish Government stands squarely behind this and future generations of business talent.”
Scottish government doubles funding for entrepreneurs
Forbes announced the new measures while on a visit to the Royal Bank of Scotland’s entrepreneur accelerator hub in Edinburgh.
According to the full announcement, a total of £34.7m will be spent on furthering entrepreneurship, innovation and social enterprise. Holyrood has said this is double the amount of funds given for 2024/25.
Part of the pool will be awarded to Techscaler, a state-run programme that connects scaling tech startups with experts in the field. £42m has been committed to the initiative so far.
The government claims to have supported 517 startups and scaleups through the scheme so far, although some critics allege that Teschscaler’s impact has been inflated.
More money will also be injected into the Ecosystem Fund, a pot of money used to organise networking events and educational workshops for Scottish startups.
A new fund will also reportedly be established that will support businesses based in sectors such as life sciences, digital, and advanced manufacturing.
Women-led startups get £4m boost
Of the investment designed to startups, £4m will specifically be allocated to women-powered businesses. This is in recognition of the specific gender funding gap that poses specific challenges for female founders when raising early-stage capital.
In 2023, the Scottish government published Pathways, a review into gender diversity in Scotland’s startup ecosystem that was commissioned by Forbes.
The findings highlighted that, despite the fact women make up one in five Scottish entrepreneurs, just 2% receive institutional investment.
The new funding pool will add to a further £250m for women-led businesses that was unveiled by the UK government at the end of November.
The ‘Women backing Women’ fund, the resource is backed by Westminster’s Invest in Women taskforce. It aims to be one of the world’s largest funding pools for female founders.
“I want everyone, from every walk of life, to feel encouraged and supported in taking the first steps on their entrepreneurial journey,” added Forbes.
