Scottish Investment Bank

The Scottish Investment Bank (SIB) operates as the dedicated investment arm of Scottish Enterprise, Scotland's national economic development agency. Based in Glasgow, SIB plays a crucial role in fostering economic growth by providing capital to small and medium-sized businesses across Scotland. Its primary mission is to address market failures in the provision of finance, ensuring that promising Scottish companies have access to the funding necessary for their development and expansion. SIB's strategic approach involves co-investing alongside private sector investors, thereby de-risking investments and stimulating greater private capital flow into the Scottish economy.

SIB manages a portfolio of funds designed to support businesses at various stages of their growth cycle. These include the Scottish Seed Fund, targeting early-stage companies, the Scottish Co-investment Fund, which supports a broader range of SMEs, and the Scottish Venture Fund, aimed at more mature businesses seeking significant growth capital. This diversified fund structure allows SIB to cater to a wide spectrum of funding needs, from initial seed capital to substantial growth equity. The bank's commitment to co-investment means it typically partners with business angels, venture capital firms, and other private investors, leveraging their expertise and capital.

The typical investment sizes from SIB's funds demonstrate its flexible approach. For instance, the Scottish Co-investment Fund can provide equity and loan investments ranging from £10,000 to £2 million, while the Scottish Venture Fund offers equity investments between £100,000 and £5 million. This broad spectrum allows SIB to support businesses from their nascent stages through to significant expansion. Over the years, SIB has proven to be a cornerstone of the Scottish funding landscape. Since 2003, it has invested over £1.2 billion directly into Scottish businesses, a significant contribution that has successfully leveraged over £3.2 billion of private sector investment, underscoring its catalytic role in the nation's economy.