A reflection on Scotland’s investment landscape in 2025

The BVCA recently launched its ‘Private Capital in Scotland’ report which highlights the multi-year, annual increase in the number of Scottish businesses taking on venture and growth capital support in 2025. In Scotland, private capital is reported to support 639 businesses who employ almost 160,000 employees and contribute close to £11bn to GDP evidencing the positive and significant impact that private investment can have. 

At Maven, this increasing impact of private capital for SMEs has continued into 2025 with the team providing capital to nine new companies operating in sectors being disrupted by high-tech innovation to more traditional industries. With a focus that spans early-stage university spinouts through to established later-stage companies, management buy-outs and family-owned businesses, Maven’s approach is rooted in its breadth of investment offering, regional reach, and practical partnership with entrepreneurs.

Investments during the year included Dalgety Bay’s PowerPhotonic, where Maven committed £2.6 million to fund expansion in the UK and US, Aberdeen-based NCIMB which was supported through a £1.7 million round alongside the Scottish National Investment Bank and Edinburgh logistics platform Podfather, which secured £3.4 million to drive new vertical growth. The team also supported the Strathclyde University spin-out and award winning DXCover as part of a £5 million investment round, who have developed a cancer diagnostics platform.

While there is much to celebrate in the national statistics, the positive metrics around the number of company's receiving funding masks what continues to be a challenging fundraising environment for management teams. When talking with those actively involved with SME investment a common theme from the year is that investment processes are taking longer or stalling altogether. The knock-on impact for companies seeking finance is magnified as the management teams must flex their growth plans pending investment being received, while also having to run the business day to day. This is further complicated by extended and complex diligence and legal processes. There also remains a challenge for those businesses seeking pre-seed or early-stage investment where the product or customer demand is not yet proven. 

The sense of accomplishment for management teams in successfully closing an investment round can be short lived however, with the immediate focus switching to delivery of the growth plan in increasingly challenging operating environments and where the secured funds may not last as long as planned. Founders are having to contend with structural realities that affect their ability to build and scale a business in today’s economic environment. Following the inflationary environment of recent years, businesses are experiencing an overall higher cost base, including the fight to attract and retain the necessary talent to deliver the growth plan. Businesses must also contend with constrained customer budgets and lengthening sales cycles which can result in contract delays and have a negative impact on forecasted revenues and cash flows. Even the most robust of businesses need a longer cash runway to reach meaningful scale. 

Maven has experience across a broad range of industries and business operating models, enabling it to understand common challenges that may be faced while factoring in the time and money that may be needed to credibly deliver compelling but ambitious growth plans. Ongoing support and follow on funding from existing investors are becoming an increasingly common feature, with further investment, often over multiple funding rounds necessary as growth plans take longer and cost more to deliver. This may also involve the need to attract new investors, but the ongoing commitment and show of confidence from exiting investors can be a determining factor in securing further funding. 

AI was the common theme for companies across the year with a number of businesses leveraging its capabilities. But for all the gains that this enabling technology can deliver, it also increases the need for a business to differentiate itself, with barriers to innovation that previously created a competitive moat, significantly reduced or removed altogether. The USP of a company is being increasing challenged, making it more difficult to stand out to investors, adding another layer of complexity to an already difficult fundraising environment. The challenge for investors is also growing, as it becomes increasingly difficult to identify truly differentiated technology that can deliver sustainable growth. 

What has not changed however is the requirement of investors to identify a management team who, with the requested support can deliver a growth plan. Management teams are still able to set themselves apart and secure investment by presenting a compelling strategy and being able to clearly evidence and communicate their competitive advantage and knowledge for their market and its customers’ needs. 

Heading into 2026, our pipeline of new investment opportunities remains strong, and we expect to get off to a strong start in backing the next wave of scaling businesses and look forward to partnering with them to help deliver their growth ambitions. 

If your business, or the business you advise, is exploring funding opportunities to support future growth we would love to hear from you. Speak to one of our investment team by getting in touch at funding@mavencp.com.