KPMG and RSM reports shine spotlight on Scotland’s ‘resilient’ tech scale-ups
“Across sectors including technology, life sciences, energy and manufacturing, Scottish businesses are demonstrating real innovation and global growth potential” – Amy Burnett, KPMG
Scottish businesses raised just over £116 million in the third quarter of 2025, after a surge in venture capital investment, a new report suggests.
A total of 23 such investments were completed between July and September, the same number as in the second quarter, according to KPMG’s latest Venture Pulse study. However, those deals raised a total of £116.1m in the third quarter, which is an increase of more than 200 per cent from the £36.2m invested in the previous three months.
The report examines venture capital (VC) investment into Scotland’s start-up and scale-up businesses.
The largest raise in the latest period was a £67.5m investment in Stirling-based DL Mining, a cloud mining service platform. Software also dominated more broadly, with almost a third (30 per cent) of Scottish VC investments in the third quarter made into the sector.
The increase in VC investment comes as KPMG’s recent mid-year Private Enterprise Barometer found that the appetite for Scottish businesses pursuing equity finance is gaining momentum, with more than a quarter (29 per cent) of the country’s businesses now open to such funding.
Amy Burnett, KPMG “Emerging Giants” Scotland lead, said: “The quality, resilience and ambition of Scotland’s scale-up community continue to stand out, with another strong quarter for venture capital investment.
“Across sectors including technology, life sciences, energy and manufacturing, Scottish businesses are demonstrating real innovation and global growth potential. This diversity and drive is helping to attract investors’ attention and strengthen Scotland’s position as a leading hub for enterprise.”
She added: “At KPMG, we’re proud to support Scotland’s scaling business community through initiatives such as our ‘Access’ Series A preparation programme.”
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Across the UK, there was also a rebound in VC activity during the third quarter following a Q2 that saw the weakest quarter of investment in five years.
New figures show that investment levels jumped to £4.6 billion across 594 deals, up from £2.6bn across 435 deals in the previous quarter, making the UK number one in Europe when it comes to VC investment in Q3.
KPMG said the quarter was defined by a mega deal in the AI sector with NScale securing a £1.1bn investment with other major deals including Rapyd Financial, which offers payments, mobile wallets, money transfers, card issuing, and fraud protection, netting £370m and crypto and cloud infrastructure firm PS Miner landing £259m.
Nicole Lowe, UK head of KPMG’s Emerging Giants practice, said: “It is extremely encouraging and constructive to see the UK rebound strongly in Q3 with high levels of VC investment but what is most positive is the fact that the country is being recognised for its attractiveness when it comes to future investors. Something which continues to show a level of confidence in the country in this quarter and for many more to come.
“The deals during Q3 also continue to showcase the UK’s growing role in being a hub for frontier tech across a range of areas including AI and crypto. This is a massive shot in the arm of firms looking for investment across the UK and provides a very strong platform for future growth and renewed interest despite headwinds from geopolitical conflicts and trade concerns.”
The report comes as new research suggests that Scotland’s tech sector is continuing to defy economic uncertainty after new incorporations jumped by more than a quarter.
Adit, tax and consulting firm RSM UK’s analysis found that a total of 471 new tech companies were incorporated in Scotland in the third quarter of 2025, jumping 26 per cent from 375 in the same quarter last year. Despite a slight drop from the previous quarter, which showed exceptional year on year growth of 36 per cent, the overall trend is of strong growth, RSM noted.
Will Simpson, head of technology for RSM UK in Scotland, said: “This momentum in new tech incorporations suggests that, despite continuing headwinds, the business leaders and entrepreneurs of Scotland will continue to innovate and invest. With worries over how the UK government will address gaps in the Budget, it’s now more important than ever that the UK and Scottish governments work to develop a healthy ecosystem, where innovative tech companies are nurtured, not only at early incorporation, but also as they look to scale.
“The tech sector has the capability to become a huge driver of economic growth, and with the right government support, Scotland would be ideally placed to benefit, with its world-class universities driving a skilled future workforce for the sector,” he added.
UK-wide, the firm’s analysis found 15,470 tech companies were incorporated in Q3, jumping 36 per cent from 11,368 in the same quarter last year. The number of tech incorporations rose by 8 per cent compared to Q2 this year.
Ben Bilsland, partner and head of technology industry at RSM UK, said: “UK tech is showing resilience, with quarterly tech incorporations reaching another record high despite broader business confidence remaining subdued. The continued momentum in the UK’s booming tech ecosystem of high growth, successful companies will further reinforce the country’s position as a global leader in tech.
“Looking ahead, the government must address roadblocks to ensure growth of these tech companies isn’t stifled. Funding is crucial, alongside access to the right talent and skills, and a regulatory environment that balances innovation with protection.”
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