A fifth of new investment in Scotland last year went into University of Edinburgh companies, a recent report has shown.
Nine of the 43 funding rounds (21%) that drew new investors to Scotland in 2025 were for Edinburgh startups and spinouts the report, by investor platform Young Company Finance (YCF), found.
New investment in Scotland has risen from 65 funders in 2023 to 76 in 2025. Notably, biotech spinout Rhizocore, from the Roslin Institute, attracted five investors to the Scottish market for the first time (The First Thirty, The Grosvenor Estate, Sand River, Generation-Re and Kibo Invest) investing alongside Scottish Enterprise and Old College Capital (OCC), the University of Edinburgh’s venture investment fund.
The average deal size in 2025 rose sharply, driven by a small number of particularly large funding rounds, including for Edinburgh spinout Trogenix, from the Institute of Regeneration and Repair, which raised £70m to start in-human trials of its brain cancer treatment platform.
Alongside health, which continues to attract new investment, there was a marked increase in investment into technologies that strengthen sovereign capability, from space and communications to recycling and advanced manufacturing.
OCC was noted for attracting 14 newcomer investors over five deals, contributing to an increase in syndicated funding, where public agencies, private investors, university venture funds and other capital providers are increasingly participating alongside one another.
The Scottish National Investment Bank participated in five of the 43 rounds attracting newcomers, while Scottish Enterprise participated in 16 (more than 37%). Scottish university venture funds participated in seven rounds, five of which included OCC.
Dr Andrea Taylor, CEO of Edinburgh Innovations, the University of Edinburgh’s commercialisation service, said:
It's hugely encouraging to see the University of Edinburgh attracting new investors to Scotland.
And it's no surprise: it's testament to the quality of our companies and the thriving support ecosystem we have built around them, including crucial early-stage funding and ongoing co-investment and support from OCC.
That support, and the investment it brings, enables innovators like Rhizocore and Trogenix to make a real and lasting social and economic impact on the world. ”
Alison Grieve, editor of Young Company Finance Scotland, said:
The consistent growth in newcomers – now 76 organisations backing Scottish companies for the first time – shows that Scotland’s growth capital market continues to earn attention well beyond its borders.
What’s particularly striking this year is the shift towards sovereign capability. Investors are increasingly drawn to Scottish companies in sectors that speak to a broader strategic confidence in what Scotland has to offer. With nearly a third of all rounds now attracting a newcomer, we’re seeing a market that’s not just growing, but genuinely diversifying its base of support. ”
The full report will be presented at the YCF Conference 2026 September 17 at Surgeons' Quarter, Edinburgh.
