Business News Round Up (21/05/2024)
£5 million government support for start-ups unveiled
The Scottish Government has unveiled a £5m package of support for start-ups. It forms part of an ongoing to commitment to deliver on the recommendations of the Logan report into developing a world-class technology sector, and the Pathways report, which is focussed on expanding the number of women starting and scaling-up businesses. The package includes: funding to expand the business funding competition Scottish EDGE, helping broaden and tailor the range of financial support available to fledgling businesses; the development of pre-start support, aimed at stimulating the earliest stages of business creation and product development for under-represented groups; support to maximise the economic impact of university spin-out companies, and commercialise research; and investing in initiatives that will attract the world’s top talent and showcase Scotland as a global destination for start-up founders and investors.
https://www.insider.co.uk/news/5-million-government-support-start-32850789
GB Bank lands £85m investment deal
GB Bank is primed for growth after securing an £85m investment deal. The bank, which specialises in funding property projects for SME developers and investors, has landed the funding from new investor Hera Holdings and existing shareholder the Teesside Pension Fund. Hera Holdings is injecting £40m in GB Bank over the next 12 months and intends to invest a further £40m throughout 2025 and 2026. The Teesside Pension Fund, meanwhile, was one of GB Bank’s original investors, and will now provide a further £5m. The expansion will see GB Bank rapidly grow its lending capabilities offering funding of up to £10m and up to 80 per cent loan to value. The bank is forecasting that the new investment will allow it to grow its lending to £500m over the next 12 months as it rapidly expands its team and infrastructure.
https://www.insidermedia.com/news/national/gb-bank-lands-85m-investment-deal
Scottish tech industry to “grow rapidly” in the next five years, per new survey
Scotland’s tech industry is predicted to “grow rapidly” in the next five years, according to a new report from UKTN. Eight out of 10 tech leaders say the sector is set to expand in the second half of the decade, with 76% stating that Scotland had become ‘more attractive’ to start a tech firm in the past five years. A total of 86% said they would encourage other similar firms to launch in Scotland and 80% stressed they had received advantages to setting up and running their firms in the region, according to the survey sponsored by KPMG. The report ranked fintech as a strength for Scotland followed closely by health tech, with climate tech and deep tech cited as emerging specialisms. Tech leaders also highlighted the ability to secure funding as the main challenge in the sector closely followed by hiring the right kind of staff.
Record tourism boom in Scotland sparks economic growth
Nearly four million people visited Scotland last year, up from 3.7m before the pandemic, according to data from the International Passenger Survey by the Office of National Statistics. This marks a significant milestone for Scotland, making it the only part of the UK to achieve record levels of tourism growth in the past year. Incoming Visit Scotland CEO Vicki Miller highlighted that nearly 20% of visitors to Scotland are from international markets. She noted that international tourists are crucial as they tend to stay longer and spend more, contributing 46% of the total tourism value in Scotland. Outgoing VisitScotland chief executive Malcolm Roughead echoed these sentiments, stating that the figures signify not just recovery but growth, with international visitors exceeding pre-pandemic levels. He emphasized the importance of these visitors to Scotland’s tourism industry and the broader economy, pointing out that they support various businesses, jobs, and communities across the country.