The Scottish deeptech ecosystem raised £704 million in 2024, a 19% increase on the year before, according to a Scottish Government evaluation. Which raises the obvious question: if Scottish founders are staying put and capital is following, what changed?
The short answer, according to people close to the action, is that the infrastructure around research translation has matured. The longer answer involves a shift in founder confidence, better mentorship networks, and a growing body of evidence that you can build a globally ambitious company without relocating to London, Cambridge or the US.
The Scottish deeptech ecosystem’s research advantage
‘If you look at Scotland over the last 250 to 300 years, it arguably has the most inventions in the world,’ says Zakareya Hussein, CEO of e-skin robotics startup Touchlab. ‘Antibiotics were discovered here, modern day global economics, the steam engine.’ That historical depth in research and problem-solving is not just rhetorical. Research from the Royal Academy of Engineering shows Edinburgh ranks as the highest UK city for deeptech investment outside of the Golden Triangle of Oxford, Cambridge and London. And 57% of Scottish venture capital money went to deeptech last year, according to a report by Dealroom and the University of Glasgow.
Allan Cannon, entrepreneur in residence at Scottish growth platform CodeBase, points to physical infrastructure as part of Scotland’s edge. ‘We produce world-leading science and have offshore energy infrastructure, defence ranges and industrial assets,’ he says. Assets he cites include wave and tidal energy facilities the European Marine Energy Centre and Offshore Renewable Energy Catapult, as well as the Ministry of Defence Hebrides defence range. These are not resources a startup can easily replicate by moving south.
Bridging research and commercial reality
The persistent challenge has been moving from research excellence to commercial traction. Founders and investors often describe this gap as a ‘valley of death’: the period between a validated idea and a fundable, scalable business. Scotland’s universities have historically supported early-stage research well, but the commercialisation infrastructure around them is only now catching up.
‘We’re excellent at getting ideas to the runway,’ says Dr Chelsea Jarvie, founder of AI age verification provider Neon Guard. ‘The commercialisation infrastructure has come on a lot, and universities are taking spinouts seriously. A researcher with commercial ambition today has real, clear routes forward that didn’t exist as visibly before.’ Jarvie is direct about what still needs work. ‘The next step is making sure that support is matched with capital, especially early on.’
Cannon adds that a common trap for deeptech founders is confusing technological validation with market validation. Jarvie ran into that herself and adapted the Neon Guard pitch accordingly. ‘I told the story and framed the technology around the people it protects rather than the techniques behind it,’ she says. ‘Now the research backs up the people-first story, instead of me trying to make technical research the story.’
What Techscaler is actually delivering
The Techscaler programme, delivered by CodeBase on behalf of the Scottish Government, sits at the centre of much of this momentum. The programme offers education courses, one-to-one and group mentorship, access to community networks, events, workspaces, and connections to investors. According to the Scottish Government executive summary, Techscaler member businesses raised £118 million in capital since the programme began to the end of December 2024, across 35 unique companies supported through three cohorts.
One element founders flag repeatedly is the international exposure. ‘Techscaler got me to Silicon Valley and it completely changed the strategy for Neon Guard,’ says Jarvie. ‘Seeing how the startup world operates outside of the UK showed me what was possible, and the connections I made there led directly to investment in the business.’ Cannon frames those trips as a feedback loop: founders come back with new processes and a recalibrated sense of their own potential. ‘Founders realise they are good enough to build here,’ he says.
Hussein echoes the value of the network for navigating early deal-making. ‘[Techscaler provides opportunities to] talk to the right people and make sure that if something doesn’t feel right, not to close a deal,’ he says, citing the example of an angel investor who may not understand a founder’s field. Having technology skills alone isn’t enough if you lack the skills to sell, he adds.
For Jarvie, the community dimension is as practical as the formal programme. ‘Scotland’s most underrated asset is its community. People here are generous with their time and willing to make introductions, so you can reach the right people surprisingly quickly.’ Cannon puts it simply: ‘There’s a huge change happening within Scotland.’ The capital numbers, at least, suggest he has a point.
