Boosting Scottish Small Businesses: The Launch of the £150 Million Investment Fund
The British Business Bank is launching a brand-new £150 million Investment Fund for Scotland today, October 5th. This initiative will provide a significant financial boost, unlocking opportunities for smaller enterprises to prosper and thrive.
Unlocking New Avenues for Small Businesses:
The Investment Fund for Scotland is designed to foster sustainable economic growth by offering crucial support to both new and expanding businesses throughout the entire country. It aims to accomplish this by tailoring investment strategies to meet the unique needs of these enterprises. The fund offers a diverse array of financial options, including loans ranging from £25,000 to £2 million and equity investments up to £5 million. This wide spectrum of financial support is intended to help small and medium-sized businesses initiate operations, scale up their activities, or maintain a competitive edge in their respective industries.
A UK Government-Backed Initiative:
One of the most notable aspects of the Bank’s Investment Fund for Scotland is that it marks the first-ever UK government-backed investment fund dedicated solely to supporting smaller businesses in Scotland. This landmark move is set to significantly enhance the availability and variety of early-stage finance options, extending a lifeline to firms that might otherwise struggle to secure investment.
Supporting Diverse Business Endeavors:
The fund’s primary goal is to support businesses in a multitude of ways, including expansion, innovation in products or services, the development of new processes, skill enhancement, and the acquisition of essential capital equipment. This comprehensive approach shows the fund’s commitment to fostering holistic growth and development within Scotland’s small business ecosystem.
Expert Fund Management:
To ensure the efficient allocation of funds and expert guidance, the British Business Bank has appointed three trusted fund managers:
- DSL Business Finance: Responsible for managing smaller loans ranging from £25,000 to £100,000.
- The FSE Group: Tasked with overseeing larger loans in the range of £100,000 to £2 million.
- Maven Capital Partners: Managing equity investments of up to £5 million.
These experienced fund managers bring a wealth of knowledge and expertise to the table, further strengthening the fund’s potential to drive positive outcomes for small businesses in Scotland.
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.
“Scotland is a nation of entrepreneurs and innovators and recent success stories from spin-outs and early-stage businesses show that there is huge economic potential. We want to create local opportunities and generate an impact that spans beyond the fund, helping to boost productivity, innovation and employment.”
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.”
Following today’s launch, 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 31 October with the second in Edinburgh on 1 November. More towns and cities will be covered in the new year and an online version of the session will also take place on 7 November.
To find out more and apply for funding, visit: www.investmentfundscotland.co.uk
Fintech leaders among key speakers for scottish scale-up event
Leaders behind innovative fintech businesses will be among the speakers at this year’s Invest2Scale 2023 being held in Edinburgh. They include Thomas Gillan, CEO of Edinburgh-based payment orchestration provider BR-DGE and Mohsin Rashid, CEO and co-founder of consumer-facing fintech ZipZero. In June, the company moved its headquarters from London to Aberdeen’s ONE Tech Hub.
Callum Murray, the founder and CEO of Amiqus Resolution will also take part in the event as a contributor during a fintech panel discussion.
They will join keynote speaker Shane Corstorphine, the founder of Scaling Up Consulting and a former senior executive at Skyscanner, at the Invest2Scale event on 31 October.
Shane set up his consultancy business, which provides coaching for CEOs of rapidly scaling businesses, in 2019 after exiting from Scottish-founded unicorn company Skyscanner where he served as both CFO and Senior VP of Growth. He was an integral part of the tech company’s C-suite team that saw it scale from around 75 people to more than 1,500. Shane is also a non-Executive director for the market-leading Forge Holiday Group and for Glasgow-based healthcare scale-up, Simple Online Pharmacy.
The 2023 Invest2Scale event, which supports scalable Scottish companies with high growth prospects, will be chaired by Michael Moore. A former Scottish Secretary who served in the 2010 Coalition Government, Michael is now Chief Executive of the British Private Equity and Venture Capital Association.
Other speakers at Invest2Scale 2023 include Gemma Hamilton, an investor at BGF, an established and independent fund that has committed over £3.5bn of investment into SMEs across the UK & Ireland; and Carol Thompson, CEO of Glasgow-based BDD Pharma, who has led its growth as an integrated development and clinical trials company.
Also addressing the event will be Mike Reid, founder and Senior Partner of Frog Capital; Mark Boggett, CEO at Seraphim Space, the world’s leading specialist investor in the SpaceTech domain; and Federico Charosky, founder and CEO of Edinburgh-headquartered global cyber security services company Quorum Cyber; Craig Johnson, co-founder and Director of Strategic Partnerships at ENOUGH; and Hayley Raeper, People Lead at digital development partners xDesign.
Launched in 2022, Invest2Scale helps revenue-generating scalable Scottish companies which are ready for high-level growth by providing them with direct access to investors and VCs. The event is led by law firm MBM Commercial, accountants and advisers CT, recruitment specialists Eden Scott, and Angel Capital Scotland (formerly LINC Scotland).
Michelle Lownie, CEO of Invest2Scale founder company Eden Scott, who will also be taking part in a panel discussion at this year’s event, said:
“We are delighted to have secured such a strong line-up of speakers for Invest2Scale 2023. Our roster of expert guests all understand and have direct experience within the scale-up community and will bring huge value to this event by sharing their stories and offering supportive insights for companies that are on the verge of global growth.”
Further information on Invest2Scale 2023 can be found at: www.invest2scale.com
Bupa everywoman in Technology Awards are open for nominations
The annual everywoman in Technology Awards, celebrating the most inspirational women working in Science, Technology, Engineering and Mathematics (STEM), are open for nominations for 2024 and have announced their new title partner, Bupa Global & UK. Companies and individuals are invited to put forward candidates until 9th October 2023 for categories recognising all stages of the career journey, from apprentices to C-Suite.
Now in their 14th year, the awards shine a spotlight on and celebrate the tech industry’s most exceptional talent, from the UK and beyond, creating role models to inspire and attract women and young girls into STEM careers and close the gender gap within technology.
As an innovative industry, new sectors and specialisms and therefore career opportunities continue to increase. The UK tech market has been valued at $1trillion making it the third most valuable in the world, confirmation that growth is not slowing. Despite this, women currently only occupy 24% of roles in the technology industry and recent research suggests that almost half experience burnout, with 7% adding that they have felt pushed to their physical and mental limits.
The new partnership between everywoman and Bupa reflects the tech industry’s responsibility to attract and retain female tech talent, ensuring that women are fully supported to fulfil their career ambitions in order to support growth.
Maxine Benson MBE, Co-Founder of everywoman comments:
“Since 1999, everywoman has been working to advance women in business and help organisations to achieve their gender goals via our awards programmes, learning and development content, and our training that’s been delivered to over 200,000 women. With 40% of our learning and development content having a wellbeing related theme we recognise that work, family, and health responsibilities are intrinsically linked so are very excited to be partnering with Bupa. We look forward to unveiling this year’s role models at the March awards ceremony with our programme sponsors, including SSE, Accenture, BAE Systems, Howden Group Holdings Ltd, American Express, Centrica PLC, Computacenter, Discover and RS Group.”
Nimisha Patel, Chief Digital & Information Officer at Bupa Global & UK comments:
“We are delighted to be the title partner of the everywoman in Technology Awards. Technology is key to delivering the best healthcare solutions for our customers, it underpins innovation, helps people to be proactive with their health and supports us in being more sustainable.
We want to support everyone to live longer, healthier, and happier lives, and we understand the challenges that women in the workplace can face. Partnering with everywoman will help women to continue making the impact they already are, and to become the brave, caring, and responsible leaders of the future. Not just for tech but for business.”
For 2024, a new category will be introduced to reflect the ever-changing landscape of the industry. The AI Award will be awarded to a woman who is excelling in her role and making a tangible difference to her business in the field of artificial intelligence.
The 2024 Bupa everywoman in Technology Awards are free to enter and all the categories can be found here. The awards ceremony and dinner will take place at The Park Plaza in London on 14 March 2024, after the annual everywoman in Technology Forum.
For more information visit www.everywoman.com/techawards
@everywomanUK #ewTechAwards
For more information contact Francesca Stainer, PR Manager, francesca@everywoman.com
Three Scottish Companies Join AG Elevate Mentoring Scheme
In a dynamic landscape where technology is reshaping industries at an unprecedented pace, leading international law firm Addleshaw Goddard has once again demonstrated its commitment to fostering innovation. The unveiling of the 2023 AG Elevate mentoring scheme is not just a celebration of entrepreneurial spirit, but a nod to the transformative power of AI and health tech.
Among the chosen, three Scottish companies have secured their spot, cementing their position in a diverse cohort that mirrors the global tech economy.
AG Elevate is a 10-month program meticulously designed to guide tech businesses through the labyrinth of legal challenges that arise as they scale-up. This year’s selection shows AI innovation across diverse sectors, with health tech also emerging as a prominent theme. The chosen businesses have a shared vision of high-growth, backed by external funding and ambitious plans to disrupt norms.
AI’s explosion
AI is no longer confined to the realm of science fiction; it’s an integral aspect of our present and future. This year’s AG Elevate cohort reflects this, with over a quarter of the selected businesses making AI central to their propositions. From generative AI startups like Syntonym, specialising in hyper-realistic synthetic face generation, to AI-driven language e-learning platforms like Cardemy, the diversity of AI applications is staggering. These innovations have the potential to redefine customer experiences, streamline processes, and revolutionise various industries.
Scotland’s Tech Capabilities
Scotland’s tech capabilities are well represented in this year’s cohort with the inclusion of three exceptional companies. Legado, an innovative data-as-a-service platform, is reshaping the client-business interaction paradigm. Vectofy, on the other hand, is easing spreadsheet comprehension with interactive 3D visualisations, reducing errors and saving valuable time. Zelim is bringing the world’s first remotely operated rescue vessel with advanced AI-enabled casualty detection to market.
The Path Forward
The selected businesses are not only gaining access to legal mentors and industry networks but are also becoming part of a supportive ecosystem that encourages cross-collaboration and shared insights. Bespoke support, legal documentation, seminars, and interactions with like-minded professionals all contribute to a comprehensive growth experience. As these 15 innovative ventures embark on their 10-month journey, they are primed to elevate not only their own businesses but also contribute to the wider narrative of technological advancement.
UK banks to support Small Businesses growth with new innovation challenge.
FinTech Scotland and Smart Data Foundry have joined forces to launch a UK Fintech innovation challenge in collaboration with some of the leading UK banks.
This innovation challenge seeks to find innovative solutions that will support and strengthen the relationships between Financial Institutions and their SME clients. Successful applicants will be able to access a prize of up to £50,000 to help develop their ideas and support taking them to market.
This challenge offers a unique opportunity for participants to present their ideas to industry leaders, as well as engage with experts in data, technology, and fintech. This exposure will allow innovators to gain valuable insights, receive expert guidance, and enter potential collaborations, maximising the chances of success for their projects.
One of the key features of this challenge is the provision of SME synthetic data* by Smart Data Foundry. It will enable FinTechs to thoroughly test and refine their innovations, ensuring the development of robust and effective solutions that address the real needs of small businesses.
Thanks to the support from the Strength in Places UK Research and Innovation Grant, substantial funding will be offered to promising projects arising from the challenge. This funding will provide the necessary resources for entrepreneurs and innovators to develop and implement their ideas which will support small businesses towards sustainable growth and prosperity.
This challenge aims to provide essential support to address the strategic and operational needs of small businesses in Scotland and the UK in a post-COVID business environment.
Banks hold vast amounts of data about their SME clients. Unlocking the power of this data can help small businesses to become even more resilient and promote financial well-being, allowing them to flourish, grow and achieve sustainable and successful commercial futures.
Supported by NatWest Group and Virgin Money, this Fintech themed innovation call looks to attract creative and innovative ideas for data-led solutions to solve this multi-faceted challenge that will ultimately benefit SMEs across the UK.
This follows recommendations laid out in the Research and Innovation roadmap published by FinTech Scotland in March 2022 which highlighted the opportunity to drive innovation in support of SMEs across various sectors.
Commenting on this initiative, Nicola Anderson, CEO at FinTech Scotland said:
“We are thrilled to launch the FinTech Scotland Innovation challenge, which presents a tremendous opportunity to support small businesses and drive innovation in the post-COVID business environment. By collaborating with industry leaders and leveraging synthetic data assets, we aim to empower entrepreneurs to develop ground-breaking solutions that will address the strategic needs of SMEs. We encourage innovators to join us on this exciting journey as we shape the future of the fintech landscape in Scotland and the UK.”
Bryn Coulthard, Chief Product and Technology Officer at Smart Data Foundry added
“One of our core missions is to use data to inspire and accelerate financial innovation. The combination of funding from UKRI’s Strength in Places Grant together with the unique SME synthetic data that we have made available for this initiative creates the ideal environment for FinTechs to embrace this challenge and to get involved. Collaboration is a key ingredient for innovation and I’m delighted that we have partnered with FinTech Scotland with support from NatWest Group and Virgin Money to provide sector expertise with the power of the combined networks to make this innovation challenge a huge success.”
Those interested in taking part can do so at https://www.fintechscotland.com/what-we-do/research-innovation-challenge/
Exits aren’t just IPOs & Roads Shows”¦
Article written by Mason Doick, Head of Corporate at Scottish fintech InfinitX
A successful exit plan for your business needs to start early and be built with the support of the team you have around you. And given current market dynamics it’s never been more important to invest the necessary time to fully consider the options available. At its core, there has been no real change here ”“ you’re either looking at a trade sale on a whole or partial basis, or otherwise it’s a case of releasing equity in the firm, affording founders and early stage investors in the business the opportunity to continue sharing in what will hopefully be the ongoing profitability.
One fundamental shift that has been observed however is companies staying private for longer. Traditional IPOs aren’t off the table – even if we have seen a real slowdown in deal flow over the last 12 months as monetary policy normalised and macro-economic headwinds have been building ”“ but the burden associated with seeking a full market listing only ever seems to increase. IPOs have always been a challenging and time consuming process, with a slew of hefty costs from various parties also needing to be accounted for. And bear in mind that becoming a public company is just the beginning, with significant ongoing obligations to maintain a listing – and placate investors ”“ also needing to be taken into account. Whilst the longer term benefits of an IPO remain clear, the increasingly complex and costly approach here is by definition necessitating a longer runway ”“ something that has the potential to starve the business of much needed capital to fuel growth.
With the IPO burden growing on an annual basis, against this backdrop we’re noticing a growing number of entities who previously may have looked at a listing deciding that the approach now looks uneconomical and the prospective return on investment is no longer alluring. But what are the alternatives if an IPO is too costly and a trade sale sees founders lose all economic interest in the business they cultivated? That’s where platforms like JP Jenkins are able to offer a third way, enabling cap tables to be reorganised, fresh investment to be made into the business in exchange for equity and then for a valuation ”“ and an ability to buy and sell stock – to be available on an ongoing basis. Issuers from many sectors are already benefitting from these services, including technology-play WeShop and the fintech incubator Quantum Financial. For many, this intermediate step has the potential to create a solid foundation when it comes to making the step to a full public market listing.
It’s difficult to ignore the headlines which all too often seem to be declaring the death of the UK as a capital raising venue. But according to UK Finance, the nation’s capital market remains one of the strongest in the world, with highlights including the fact so £14.7 billion of equity was raised in 2021 for UK companies. And the appetite for investing in privately held companies continues apace too. Using the proxy of the government’s EIS scheme, 2022 saw a record £2.3 billion invested under the program, some 40% up from the 2021 figure.
So the key takeaway here is that whilst underlying market conditions may be looking less than optimal and there’s no shortage of people willing to talk down “UK plc”, the investment market remains vibrant and businesses with solid growth prospects have little to fear when it comes to seeking fresh capital. Financial innovation means that there’s more choice than ever and allowing founders to retain an economic interest is arguably a worthy trade off if it paves the way for a better return in the longer term.
Photo by energepic.com: https://www.pexels.com/photo/close-up-photo-of-monitor-159888/
Accelerator programme to find the next Amiqus
Law firm Addleshaw Goddard has commenced its quest to discover exceptional high-growth tech enterprises to join its AG Elevate program. This program acts as an accelerator, specifically designed to facilitate the expansion of businesses in the technology sector.
AG Elevate, a rapid 10-month program, aims to propel tech enterprises from various industries forward by addressing the legal challenges that commonly arise during their growth phase.
Since its establishment in 2017, the program has successfully nurtured nearly 50 high-growth businesses. Among the select few invited to join AG Elevate in 2019 was Scottish fintech Amiqus that has since flourished tremendously. In fact, Amiqus now provides its innovative solution to Addleshaw Goddard.
Amiqus is a leading compliance platform that assists businesses in digitally managing the onboarding and compliance processes for both new clients and staff. As one of the United Kingdom’s fastest-growing fintech companies, Amiqus was conceived when its CEO and founder, Callum Murray, recognised a significant market gap. He sought to provide a solution to the complex, time-consuming, and expensive compliance challenges faced by businesses across various sectors.
Today, Amiqus excels at helping regulated businesses and organisations, including law firms, overcome practical obstacles in compliance and digital onboarding of new clients and staff.
Entrepreneurs understand all too well that the journey from a groundbreaking idea to building a successful, sustainable business is riddled with difficulties and rarely follows a linear trajectory. For Amiqus, specialising in the legal sector, the opportunity to participate in AG Elevate arrived at the ideal stage of their growth journey.
Amiqus applied for a place in the program and was chosen by an impartial panel to be part of the 2019 cohort. This stroke of fortune allowed Amiqus’ product to gain invaluable insights into the workings of an international law firm.
As part of the cohort, Amiqus was paired with a legal mentor and provided with a comprehensive package of legal support. Successful applicants also gain access to professional industry networks, tailored resources developed by AG, and opportunities to forge connections with like-minded individuals and businesses in the tech ecosystem.
This transformative experience began in June 2019. Since then, Amiqus has witnessed a doubling of its annual turnover and an expanded client base, which now includes some of the foremost organisations and professional services firms in the country. Additionally, Callum has recently been nominated as a regional finalist for EY’s Entrepreneur of the Year award.
Callum Murray, CEO of Amiqus, expressed his gratitude for the Elevate program, stating,
“The Elevate program not only provided us with invaluable support and insights but also connected us with a fantastic peer cohort of high-growth companies from across the UK. It’s truly the icing on the cake to come full circle and now support Addleshaw Goddard with our software, particularly in the field of law and technology.”
Dave Anderson, co-lead of the AG Elevate program and Addleshaw Goddard Partner who served as a mentor to Amiqus during the accelerator, commented,
“It’s wonderful to witness another success story emerging from the program, and notably, the first where AG has become a client. Callum and his team have thrived, and it’s fantastic to see AG Elevate playing a small role in their journey. Our team of legal mentors possesses a comprehensive understanding of the priorities and potential obstacles faced by rapidly growing tech businesses, offering AG Elevate members significant benefits beyond legal expertise.”
Photo by Bakr Magrabi: https://www.pexels.com/photo/compass-on-hand-3203659/
Scaling Up – improving Resilience
Season 3, episode 5
Listen to the full episode here.
Scaling up a fintech business is a crucial part of a company’s life, moving from launching and validating a proposition to growing, onboarding clients and driving revenue. At that stage companies will focus on marketing, sales, recruitment which are all important considerations. It is however paramount to also look at resilience to protect customers/clients, adhere to new regulation, be investor ready and navigate procurement better and faster.
In this podcast we will explore what being resilient mean. We’ll cover cyber resilience of course but will go much wider and look at how to build a solid and future proof business.
Guests:
Wayne Scott – Regulatory Compliance Solutions Lead
David Lanc – Founder and CEO at Ionburst
Stories from female fintech entrepreneurs
To celebrate International Women’s Day 2023, we met with two female fintech entrepreneurs to hear about their stories, why they chose to become fintech leaders, their successes and challenges.
Ana Gallacher, founder of BabyReady Finance
Sheila Hogan, CEO and founder of Biscuit Tin
I am Sheila Hogan CEO and Founder of Biscuit Tin a “death-tech” SaaS business – we make life admin easier for you now and easier for those you love in the future by helping you create a digital legacy to be proud of. Biscuit Tin is a digital secure vault holding all your life information that is released to those you nominate when you die, providing them with the direction they need to easily and effectively close down your life and a digital biography of your life to hand down the generations.
I had an entrepreneurial flair from a young age ”“ from making pencil cases that I sold to my school mates, Pencil skirts with my own , clothes label ItFitz and I tried everything to make money ”¦ every party plan going. I left School at 16 and went into Tech as I had a feeling it was a thing of the future. I started at Bradford Council as a Junior Computer Officer, I then went to study Computer Studies part-time at Huddersfield Uni.
A Programmer in the early days, I progressed onto analysis project & programme management and up to creating Biscuit Tin I was a Consultant Business Architect designing the way businesses need to operate to leverage technology. Predominantly for large financial services institutions.
The challenges I faced before Biscuit Tin were mainly my own making ”“ always looking for the next thing’ and trying to find my niche and the career I felt destined for. It appeared after closing down the lives of both of my parents armed with a physical Biscuit Tin of old papers. The two worlds of my professional technology career and personal experience collided as I realised that the life close-down’ process is completely broken and needs to change.
It seems many of my challenges since then have revolved around money ”“ from bootstrapping, winning grants and investing what I could from my pension to get the business off the ground. To the challenges of raising capital I face now to forge ahead to scale-up and deliver to our mission to make a difference in this space and be a global Digital Legacy leader within 5 years.
Pathways: A New Approach for Women in Entrepreneurship
Last week, the Scottish Government published Pathways: A New Approach for Women in Entrepreneurship. This landmark report was overseen by tech entrepreneur Ana Stewart and the Scottish government’s chief entrepreneurial adviser Mark Logan, and was commissioned to help identify ways to unlock untapped potential, close the gender gap and boost Scotland’s economy.
We met with John Cushing, CEO and founder of mnAi, who provided detailed data analysis for the report.
The report “seeks to change how we think about the under-participation of women in entrepreneurship, to more rapidly and effectively move our society away from its current extreme gender imbalance in this field of endeavour.”
Startups founded by women in Scotland currently receive only 2% of overall investment capital, representing, the report states, a “denial of opportunity on an industrial scale”.
Just how significant is the report, and its findings?
“It’s the most comprehensive report of female entrepreneurism ever undertaken in Scotland,” says John Cushing.
mnAi use proprietary data and technology to supply unique research, analytics and insight on all UK companies.
“The Stewart Report lays bare the fact that fundamentally things just aren’t moving on as fast as they should be,” says Cushing.
“This is in spite of some amazing achievements by female entrepreneurs in and across Scotland – much more needs to be done to support their ambitions, particularly growth stage companies and those seeking investment. The report not only lays bare the problem, but also identifies the solution. That’s the critical part of all of this, that the Pathways Report actually does exactly what it says ”“ it lays a pathway to success.”
“With 12bn+ data points, our core product is a data asset encompassing 9m+ UK companies and 37m+ people that is updated and refreshed in real-time,” Cushing says. “Our unique insight on hard-to-find data points including emissions, diversity, gender, productivity, investment, debt, grants, financials and more, helps improve decision making, increases efficiency and removes complexity. Having learned about our gender disaggregated algorithms and the work we did with the 2022 Rose Review and The Gender Index, Ana and her team extended an invite to also support her ground-breaking research.”
The report makes 31 recommendations such as tailored funding packages, attention to diversity in education, and quotas to ensure women get proper recognition and a fair share of investment.
First Minister Nicola Sturgeon described the list of recommendations as “compelling”, adding: “The review’s findings are challenging but underline the need to tackle the root-causes, as well as the immediate barriers, of this inequality ”¦ The Scottish Government will respond quickly to the review as a whole, and its recommendations.”
Despite the progress made in some areas there is work to be done.
“I’m very confident that things will change… however this is a collective issue,” says Cushing.
“From secondary education to investment capital, I think we all have a responsibility to support those in need or who need help. Being a business owner is not easy, and yet many people choose to do it day in, day out so why should my gender make a difference to my ability to grow my company? It shouldn’t. This report presents the facts and now it’s up to all of us to make a difference.”
For more information about mnAi’s data platform, and to book a free interactive demo, click here