Scottish city becomes financial hotspot for innovation, report reveals

Edinburgh has experienced a four-fold boost in venture capital (VC) investment, becoming the fastest-growing innovation hub in the UK, a report by HSBC Innovation Banking and Dealroom has revealed.

After experiencing a global reset since 2022, the report revealed that VC investment levels have stabilised, with the value invested in UK start-ups rising by almost $4bn in the first quarter of 2024.

While London continued to lead the funding ranking, new figures have put Edinburgh among the top three cities, with its largest funding round coming from gaming company Build a Rocket Boy’s Series D round, valued at $110m.

With the money raised by all start-ups almost amounting to the combined total of France and Germany, the UK remains the top European destination for start-up innovation and investment, ranking only behind the US and India on the global stage.  

Also, according to the research, the fintech sector has reclaimed its spot as the top-funded UK start-up sector, securing $1.4bn during the first quarter of 2024. 

Frontier technology also experienced a significant cash boost, with quantum computing and semiconductors collectively raising more than $600m.

Simon Bumfrey, head of technology and life sciences at HSBC Innovation Banking UK said: “This data reflects a busy start to the year for the UK innovation ecosystem – from growth in investment in established and emerging areas like fintech and quantum computing to expansion of regional tech hubs across the length and breadth of the country, there is much to celebrate.”