Dog-friendly cafe and luxury skincare firm among 26 Scottish SMEs sharing £10m in state funding

The state-backed British Business Bank has hailed a £10 million milestone a year after launching a dedicated fund to help support Scotland’s small and medium sized businesses.

A total of 26 ventures have received support through the Investment Fund for Scotland to date, involving a mix of debt and equity funding deals. Launched in autumn 2023, the £150m fund aims to improve access to finance, with loans from £25,000 to £2m and equity investment up to £5m available to help small and medium sized enterprise (SMEs) to start up, scale up or stay ahead.

Dental biotechnology firm Calcivis, luxury skincare treatments provider The Aesthetics Club and dog-friendly Edinburgh café Sip & Bark are among the businesses that have been supported by the fund over the past 12 months. Three dedicated fund managers - DSL Business Finance, The FSE Group and Maven Capital Partners - were appointed to manage separate parts of the investment vehicle.

The Investment Fund for Scotland was launched in autumn 2023.

The first anniversary comes as Edinburgh-based Ingenza, a biotech research business, secures funding to double its capacity and create up to 20 jobs. Delivered via The FSE Group, the £2m loan will support the fit-out of new commercial premises, enabling the capital firm to double its office and lab space and meet the growing demand in the pharmaceutical research and development market.

Ingenza engineers biological systems for a diverse range of applications, including therapeutics, enzymes, and consumer products, addressing challenges in human health and the global environment.

Mark Sterritt, director, nations and regions funds, at the British Business Bank, said: “Scotland has a thriving small business community, and it is fantastic to see the impact that our fund has made for so many businesses in just 12 months. Reaching £10m of equity and loan funding is a significant milestone, and it has helped to unlock significant opportunities for business owners, from expanding teams and developing additional products to securing new premises.

“The fund was established to improve access to finance and support growing businesses with investment strategies that best meet their needs, regardless of who they are or where they are based. So far, we have supported firms in technology, life sciences, professional services, hospitality, and more, but this is only the tip of the iceberg.”

Ian Shott, chairman of Ingenza, said: “This investment enables a crucial step forward for Ingenza. The pharmaceutical R&D [research and development] market is growing rapidly, and we are well-positioned to capitalise on this growth. By doubling our capacity, we can enhance our offerings, especially in the area of ‘first in human’ drug development testing.”

Sterritt added: “There has been growing momentum around life sciences in Scotland for some time, and it is great to support a key player such as Ingenza with funding to implement its growth strategy. Innovation is one of the priority areas of the fund, and Ingenza is a welcome addition to the portfolio of high-growth businesses that we are already working with, all at the forefront of cutting-edge science and technology.”

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