Business News Round Up (03/09/2024)
Investment in Scottish businesses hits £85 million during second quarter
A total of 23 Scottish companies shared investment worth £85.3m in the second quarter of 2024. The latest KPMG Private Enterprise Venture Pulse report showed that businesses in Edinburgh, Stirling, Dundee and Glasgow received a funding boost. This means that, in the first half of the year, that 42 firms have shared £184m in the form of venture capital (VC) investment. Standout deals completed during the second three months of the year include £13m for Edinburgh-based Prothea Technologies, £11.1m for Stirling’s iGii and £10m for Dundee outfit Outrun TX. Elsewhere in the UK, the survey showed the first signs of recovery in Q2, with the amount raised more than doubling the amount raised in the first. After a quiet opening to the year, which saw £3bn in VC funding raised by UK businesses – the lowest seen in 22 quarters – activity picked up dramatically in Q2, with £6.9bn raised.
https://www.insider.co.uk/news/investment-scottish-businesses-hits-85-33588295
Manchester hailed as a “thriving hub” for new businesses
Often described as the UK’s “second city” alongside Birmingham, Manchester has now been named as the top new business destination outside London. As the country’s economy continues to get back on track, with national output forecast to pick up pace between now and 2026, the number of new business births is a key marker of confidence in the market. And last year was a record year for the inception of new business in the UK, according to research from commercial law specialists Tend Legal, with The New Startup Index, published by NatWest and Beauhurst. It reported that more than 900,000 new firms were incorporated in 2023. The study not only looked at new business “births”, but also business “deaths”, or the closure of companies over the period, comparing various locations on how exciting they were as a start-up destination versus how well businesses could succeed there between 2017 and 2022.
Innovate UK U-turns on grant scheme after uproar
Innovate UK, the innovation agency, has been forced into a quick u-turn over a decision to award just half the number of grants it had promised to women entrepreneurs in a funding competition. The agency came under fire from businesswomen across the UK after awarding 25 out of a potential 50 grants of up to £75,000 each. This was despite receiving 1,452 applications for the Women in Innovation scheme and having “up to £4 million available to grant. Women took to social media to challenge the assessment process and accuse the agency of wasting their time making out an application. After Daily Business reported the outrage on Sunday, Innovate UK announced on Monday that it will now award all 50 grants and commit the remaining £1.87m and the full £4m initially allocated.
https://dailybusinessgroup.co.uk/2024/09/innovate-uk-u-turns-on-grant-scheme-after-uproar/
Salmon sector call for urgent economic growth focus in Programme for Government
Scotland’s salmon sector has urged the First Minister to prioritise growth and job creation in tomorrow’s Programme for Government. Salmon Scotland, the trade body representing the UK’s largest food export, is calling on John Swinney to cut the red tape hindering Scotland’s blue economy. The appeal comes as Scotland’s Finance Secretary Shona Robison and UK Chancellor Rachel Reeves face tough financial outlooks and impose public spending curbs. Tavish Scott, chief executive of Salmon Scotland, described Scottish salmon as “a bright spot for Scotland’s economy” and stressed the need for support to build on “giant leaps” in global sales, with the sector on track for record-breaking exports. Last year’s Programme for Government acknowledged aquaculture’s “vital role in our economy” and outlined a vision for the blue economy, highlighting Scottish salmon as a key component.