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A £150 million investment fund has provided £43.6 million to 95 Scottish businesses, helping companies access finance to expand, innovate and increase production.
The Investment Fund for Scotland (IFS), launched in October 2023, had invested £31.6 million in 75 businesses through 81 investments by September 2025, according to an early independent evaluation by research firm SQW Ltd.
The evaluation found the fund was reaching businesses that might otherwise struggle to secure finance, while attracting a further £33.3 million in private sector investment. This equates to £1.05 in additional private funding for every £1 invested by the fund.
By June 2026, the IFS had invested £43.6 million in 95 businesses, reaching every region of Scotland.
The fund was established to address gaps in the availability and range of finance for Scottish businesses. It offers three types of funding through dedicated managers: loans of £25,000 to £100,000 from DSL Business Finance, debt finance of £100,000 to £2 million from The FSE Group, and equity investment of up to £5 million from Maven Capital Partners.
Businesses supported by the fund span a range of industries. The evaluation found that 17% operated in professional, scientific and technical activities, 16% in wholesale and retail trade, and 13% in manufacturing.
One beneficiary is Glasgow-based Fretronics Engineering, which specialises in professional audio electronics design and manufacturing.
The company received a £40,000 loan from DSL Business Finance to increase production of its RSW Auto Switching Redundancy System. The funding has enabled the business to double its output and meet growing demand from artists and retailers worldwide.
The IFS forms part of the British Business Bank’s wider £1.6 billion Nations and Regions Investment Funds programme, which includes six regional funds across the UK.
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Adam Kelly, managing director of debt and regional funds at the British Business Bank, said: "This independent evaluation highlights the important role the Investment Fund for Scotland is playing in supporting smaller businesses across Scotland.
"The findings demonstrate that the fund is helping businesses access the finance they need to invest, innovate and grow, whilst also helping to attract additional private sector investment into the Scottish economy.
"While the fund is still at an early stage, it is encouraging to see strong evidence that it is supporting businesses that might otherwise struggle to secure finance and helping to create the conditions for long-term economic growth."
Olly Warner, founder and director of Fretronics Engineering, said: "The Investment Fund for Scotland has been a core part of our ability to scale, giving us the capital we need to purchase parts and increase our production levels.
"It's meant we can double our output and meet the demand we're seeing from artists and retailers around the world."