Scottish companies raised £42m in the third quarter of 2018 (July – September), more than double the amount raised in the previous quarter (£21m).
New figures from KPMG’s Venture Pulse report, which highlights key trends, opportunities and challenges facing the venture capital market, also reveals £35.8m out of a total £42m was raised by businesses in Scotland’s healthcare sector.
Standout deals in Scotland included £18m raised by Edinburgh-based DYSIS Medical, a developer of medical equipment, and £8.54m by Care Sourcer, a care provider comparison site.
The regional trend mirrors the UK-wide and global story, which saw healthcare and biotechnology driving some of the quarter’s top investment deals, including London-based gene therapy developer, Orchard Therapeutics (£112m), and drug developer Artois at £65m. Globally, healthcare companies raised £14.5bn ($19bn) in the third quarter of 2018.
In total, £1.4bn of Venture Capital was invested in UK businesses in the last three months, thanks to a number of multi-million-pound deals.
James Kergon, head of deal advisory for KPMG in Scotland, said: “The summer is usually quite a quiet period for investment, yet Scotland has continued to attract investors, particularly in the healthcare sector.
“Scotland’s healthcare companies, both large and small are thriving, and as the UK’s population continues to grow older, drug development and biotechnology will continue to be a safe bet for investors.
“Start-ups fared particularly well, with early-stage financings accounting for £16m of investment, including a remote patient monitoring developer, Snap40, raising £6.1m in its seed round.
“This is particularly encouraging for Scotland as we prepare to leave the EU, and while investors will be keeping a close eye on negotiations in the coming months, this shows confidence in Scotland’s economy and its ability to remain at the forefront of technological developments.”
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