£420m boost: BGF marks 15 years of backing Scottish start-ups and scale-ups
“Since 2011, we’ve seen how resilient and determined the Scottish business community is” – Patrick Graham
Funder BGF has completed some £420 million in Scottish investments as part of its mission to support the regional growth economy, 15 years after it was established.
BGF - formerly the Business Growth Fund - was established in 2011 to address what was seen as a structural funding gap in the UK mid-market. Investing through minority stakes, the funding outfit partners with entrepreneurs and management teams while enabling them to retain ownership and control.
BGF supports businesses at all stages of growth - from earlier-stage companies to established and family-owned firms.
Today, BGF is ranked as the UK and Ireland’s most active growth investor and has backed more than 650 companies across a network of 15 offices. Some 74 per cent of capital has been deployed outside of London and the south east of England, reflecting BGF’s longstanding regional focus.
Across the UK and Ireland, about £5 billion has been invested in the last 15 years, according to the latest figures.
They also reveal that BGF has generated £3.7bn in proceeds across more than 280 exits, while BGF-backed companies have delivered more than £8.2bn in revenue growth. Since 2011, BGF portfolio companies have created in excess of 35,000 jobs.
In Scotland, the investment group has backed growth businesses from sectors spanning luxury goods to life sciences. Its current portfolio includes firms from across the nation, such as Strathberry, Waracle, Calnex, Walker Precision Engineering and Stellar Omada.
Recent investments north of the Border include a £15m investment in Cruden Homes, which sits alongside positive recent exits from Aberdeenshire catering company Entier and Edinburgh AI consultancy Optima Partners.
In 2026, BGF was recognised as the most active investor in the UK’s 245 fastest-growing private equity-backed companies, according to the Real Deals Private Equity Value Report, in association with BDO, the accountancy and business advisory firm. BGF currently has a portfolio of 360 investee businesses and assets under management of about £3bn.
Patrick Graham, regional partner for Scotland, Ireland, south west England and Wales at BGF, said: “As we celebrate 15 years of backing Scotland’s most driven businesses, we are proud of the strong roots established in the region. Our track record of consistently healthy returns is a product of the trusted relationships we have built with some of the best management teams in the country.
“Since 2011, we’ve seen how resilient and determined the Scottish business community is. Our portfolio is at the forefront of developing pioneering technologies, providing high-quality services to communities and stimulating much-needed economic growth, despite a difficult operating environment.
“The value of our flexible, patient capital approach has given the businesses we back the confidence they need to reach their growth potential,” he added.
BGF said it had committed to invest a further £200m in Scotland over the next five years, underlining its confidence in the”depth of opportunity across the nation” and “supporting ambitious businesses to scale”.
Meanwhile, UK start-ups and scale-ups raised some $17bn (£13bn) in venture capital funding during the first half of 2026, marking the strongest opening to a year since 2022, according to new analysis from HSBC Innovation Banking UK and Dealroom.
Growth was driven by record levels of investment in artificial intelligence (AI), renewed momentum in late-stage funding and continued strength across deep tech and life sciences, reinforcing the UK’s position as “Europe’s leading innovation ecosystem”, the report notes. The UK attracted 39 per cent of all European venture capital investment during the period and raised more funding than the next three largest European markets combined, according to the latest study.
AI remained the defining theme of UK venture capital investment in the first half of the year, with AI-related start-ups raising a record $12.6bn - accounting for nearly three quarters of all venture capital invested in the UK. Funding was more than four times higher than the first half of 2025 and almost four times the previous first-half peak recorded in 2022.
AI companies secured 19 of the UK’s 28 “mega-rounds” during the first half of this year and accounted for all four $1bn funding rounds completed during the period. Enterprise software attracted the highest levels of AI investment, followed by health, hosting and robotics.
Emily Turner, chief executive, HSBC Innovation Banking UK, said: “The first half of 2026 demonstrates the continued strength of the UK’s innovation ecosystem, with record levels of investment reflecting growing confidence from both domestic and international investors. What is particularly encouraging is how AI is increasingly being applied across sectors.
“We’re seeing it create new opportunities in sectors from life sciences and deep tech to enterprise software, while helping companies compete on a global stage.
“The UK’s combination of world-class research, entrepreneurial talent and access to capital continues to make it one of the most attractive places in the world to build and scale innovative businesses. As success increasingly emerges from innovation hubs across the country, the foundations are in place for the next generation of breakthrough companies to scale globally.”
Technology secretary Liz Kendall said: “The UK is one of the most exciting places in the world to start and scale a tech company, especially in AI. We have the biggest capital pool in Europe, outstanding talent from our world-leading universities and a regulatory environment that is pragmatic, not dogmatic.
“These investment figures aren’t just theoretical. They mean well-paid jobs and exciting opportunities in some of the fastest-growing sectors for people all across the UK. We are determined to ensure the UK’s tech success works for all in every part of the country. We will continue to back our outstanding tech talent from all backgrounds in every nation and region.”
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