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Early evaluation shows the Investment Fund for Scotland is improving access to finance and supporting business growth across Scotland

Press release 13 October 2026

  • Independent evaluation finds the fund is performing well and operating broadly as intended. 
  • Strong evidence the fund is addressing regional finance gaps and improving access to finance for smaller businesses.
  • £31.6m invested through the Investment Fund for Scotland by September 2025
  • £33.3m of private sector funding leveraged   
  • 81 investments delivered to 75 smaller businesses across Scotland by September 2025  

An ‘Early Assessment Report’ undertaken by an independent research company (SQW Ltd) has found that the Investment Fund for Scotland (IFS) is helping to improve access to finance for smaller businesses across the country, supporting ambitious firms to grow, innovate and scale. 

By September 2025, the fund had provided £31.6m of investment, across the three sub-funds (equity, debt and smaller loans), to 75 businesses, helping to address local finance gaps and increase the availability of funding for smaller businesses.  

The evaluation, undertaken by independent research company SQW Ltd, found strong evidence that the fund is supporting companies that may otherwise have struggled to secure investment, while also attracting additional private sector finance into the region.  The fund has leveraged £33.3m of private sector investment, securing £1.05 of private sector leverage for every £1 invested.

IFS was launched in October 2023 in response to identified gaps in the supply and diversity of finance available to businesses across Scotland. The £150m fund comprises three finance options, delivered by dedicated fund managers: smaller loans of £25,000 to £100,000 managed by DSL Business Finance; debt finance of £100,000 to £2m, managed by The FSE Group; and equity finance of up to £5m, managed by Maven Capital Partners.

The evaluation found evidence that IFS is helping to address these finance gaps, with businesses supported across a broad range of sectors. Professional, scientific and technical activities accounted for 17% of firms supported (13 businesses), followed by wholesale and retail trade at 16% (12 businesses) and manufacturing at 13% (10 businesses).

Since the evaluation period ended, IFS has continued to invest in businesses across Scotland. The latest figures for June 2026 show that the fund has invested £43.6m into 95 businesses and has reached every region of Scotland.

One business to benefit from investment through IFS is Glasgow-based Fretronics Engineering Ltd.

Fretronics Engineering is a specialist in professional audio electronics design, manufacture and repair, operating within advanced manufacturing - one of the eight high-growth sectors identified under the UK Government's Modern Industrial Strategy. Founded by Olly Warner in 2022, the business produces the RSW Auto Switching Redundancy System, a device that monitors a live audio system during a performance and automatically switches to a backup if it fails. Since launching the device, the company has supplied equipment to major national and international artists including Harry Styles, Sabrina Carpenter, Coldplay, Benson Boone and Niall Horan.

Following strong sales from an initial release of just 50 units, Fretronics Engineering was looking to scale up production to meet growing demand and fulfil a pipeline of new orders. To meet this demand, the company secured a £40,000 loan from DSL Business Finance through the Investment Fund for Scotland.

The funding enabled Fretronics to double its monthly production output and build up stock levels to meet demand, as well as support new retail partnerships secured in the UK, Germany and the USA. From its manufacturing base in Govan, the RSW is now in use by artists and engineers around the world.

Fretronics Engineering currently employs a team of four, with plans to grow further and expand into neighbouring premises as production continues to scale.

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. Our products are trusted by leading names in the industry for their performance, reliability, and build quality, and it's been great to have the opportunity to work with some of the biggest names in the business.

Adam Kelly, Managing Director of Debt & 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.

The findings form part of SQW's independent evaluation of the British Business Bank's wider £1.6bn Nations and Regions Investment Funds programme, which comprises six regional funds across Scotland, England, Wales and Northern Ireland.

By September 2025, the wider programme had invested £294m through 951 investments to 877 businesses, attracting £233m of private sector investment. Across the programme, 81% of surveyed businesses reported that they would either have been unable to secure finance without the funds or would have secured funding on a smaller scale or over a longer timeframe.

The six Nations and Regions Investment Funds evaluated were the Northern Powerhouse Investment Fund II, Midlands Engine Investment Fund II, South West Investment Fund, Investment Fund for Scotland, Investment Fund for Wales and Investment Fund for Northern Ireland. 

Download report (.PDF, 5.8 MB)

Further Information

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Notes to editors

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive economic growth by helping smaller businesses get the finance they need to start, scale and stay in the UK. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

The British Business Bank’s core programmes support £23bn 1  of finance to almost 64,000 2  smaller businesses.

British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at british-business-bank.co.uk.

The Nations and Regions Investment Funds are supported by Nations and Regions Investments Limited, a wholly owned subsidiary of British Business Bank plc. They are not authorised or regulated by the PRA or FCA. British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such. A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.

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