Scotland’s investment market sees best half year performance, and whilst the headwinds are challenging, some see opportunity!

Kerry Sharp, Director, Entrepreneurship & Investment, Scottish Enterprise shares an insight into Scotland’s investment market, “Reflecting on what we are seeing in the Scottish market, over £500m was invested into Scottish companies in the first half of the year – our best half year performance yet, bolstered by some large deals. Scottish Enterprise’s early-stage activity continued to be very healthy over that period too. While an encouraging start to the year with significant capital being deployed and strong interest from international investors in Scottish opportunities, market commentary is pointing to increased uncertainty and changes in investor behaviour given the economic challenges we now face.

There is no doubt the overall market dynamics are changing – substantially reduced exit activity and downward pressure on valuations and an ever greater move towards later stage opportunities with commercial traction which present less risk to investors. Companies tell us that they are finding it harder to raise all of the finance they need, and many of the transactions we are involved in are becoming more complex, and taking longer. It is increasingly clear that companies will need to be even better prepared to raise finance in the challenging market ahead – there are still funds to invest, but the competition is going to be even tougher.

Current market conditions means there is an even greater need for our company building support at the earliest stages of the market, including our Financial Readiness Service (helping companies navigate the financing landscape and put their best case forward), as well as our co-investment activity directly investing alongside a diverse range of investors. How we work with others in the eco-system to support Scotland’s growing pipeline of high growth investment opportunities has never been more important.”

For more details on our co-investment funds and loan product visit www.scottish-enterprise.com/investment