Scotland’s tech sector accounted for 44% of equity investments in small businesses last year, according to the British Business Bank’s small business equity tracker.
It revealed that £124m was invested into smaller tech companies in Scotland in 2020, with a total of £284m in equity deals last year.
The number of deals in the tech sector grew by 16% in 2020 – exceeding the UK’s 12% increase.
Life sciences companies contributed significantly to this figure, receiving £44.6m in equity investment, with Scotland receiving 31% of the UK’s deals in this sector in 2020.
Scotland’s share of small business equity investment deals has more than doubled over the last five years, from 5% in 2016 to 12% of the UK total.
Activity has been boosted by a variety of new companies emerging, along with support from the Scottish Government, with 42% of announced equity deals during 2020 involving state backing.
The British Business Bank said that last year’s strong momentum has continued into the first quarter of 2021.
The total value of equity investment in smaller businesses across the UK reached £4.5bn - the highest amount ever recorded in a single quarter. Scotland accounted for £90.9 million of this figure.
Mark Sterritt, UK network director for devolved nations at the British Business Bank, said: “It is particularly encouraging to see the tech and life sciences sectors feature so prominently as destinations for investment.
"Scotland has a flourishing tech ecosystem and a vibrant life sciences sector, with a broad range of exciting and ambitious companies emerging across the country, with products and services that have global potential.”
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
