HM Insights

The Edinburgh effect – why it's all growth in our capital's investment world

Edinburgh is renowned for its high standard of living and quality of life, however, it is also world-class when it comes to the amount of support available to young and growing businesses. So it's no wonder more and more people are waking up to the benefits of launching a business in the city and being part of it and Scotland's thriving ecosystem. 

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As a country, we've been making waves in the equity investment scene in recent years, and forecasts or this year expect our private equity scene to skyrocket. Key indicators of this include recent statistics showing that private equity and venture capital firms backed three times as many deals in Scotland in 2018 than they did in 2011 - so we can only imagine what the rest of 2019 has in store.

Despite Scotland's relatively small size, Beauhurst statistics show that Scottish companies managed to secure 37% of the announced deals backed by angel networks in 2018, with Edinburgh securing the most deals in Scotland in five of the past six years. 

Separately, the crowdfunding market is continuing to dominate the equity investment sphere with British crowdfunders investing £98.2 million through 187 deals in the first half of 2019 alone. Crowdcube, one of the top crowdfunding platforms in the UK, completed 83 deals in this first half.  Harper Macleod has a working partnership with Crowdcube and companies working with both organisations can save on deal costs.

As for sectors, sticking to its upward tangent in recent years, reports show that FinTech – an area in which Edinburgh takes the lead - has dominated this year already with more money invested in the first half of the year than in any other half and already beating its figures for the whole of 2018.

While this is all great, it doesn’t come as a surprise to those familiar with the market in Scotland, and particularly in the capital.

Four years ago Harper Macleod moved to larger premises next to Haymarket station to keep up with the growing demand for our services in the east of Scotland and since then our headcount in Edinburgh has doubled.

Also, our startup and investment team has increased by 300% between 2011 and 2018 and we are currently recruiting for new team members to join our team to assist with our continued growth. 

Get in touch

Harper Macleod has extensive experience in doing investment deals in both Edinburgh and Scotland at large and we are overjoyed by the increase in the number of deals completed and the cash invested across Scotland. To find out what we could do for your business, please get in touch with a member of the team.