Skip to main content

​
What this report is

The Scottish Scale-Up Panel report, Scaling Scotland: Building the Engine for the Next 50 Years of Prosperity, was produced by Shane Corstorphine and the Scottish Scale-Up Panel (SSUP), established in January 2025 following a conversation with Deputy First Minister Kate Forbes. It is based on 75+ interviews with founders, investors, and advisors. It is designed to complement Mark Logan’s Scottish Technology Ecosystem Review (2020) and the Logan/Stewart Pathways report (2023). The report sets a target of 10 new unicorn companies (valued above USD 1 billion) and 50+ major scale-ups (above £50 million revenue) by 2040.

​
The scale-up gap

Scotland has approximately 1,520 scale-ups with revenues up to £5 million, but only 285 in the £5-10 million bracket, 250 between £10-50 million, and just 85 above £50 million. Scottish scale-ups average 67 employees versus a UK average of 100, and £14.7 million revenue versus £20 million. Closing this gap could mean 138,000 more high-value jobs and £22 billion in additional annual company revenues. Between 2001 and 2016, more than 40% of Scotland’s high-growth firms were acquired or closed. The report’s central thesis is “build for scale, not for sale.” Skyscanner is the counter-example: over 15% of equity sat with employees, spawning new founders, executives, and investors. The HQ and largest office remain in Edinburgh nine years after the Trip.com acquisition.

​
The four pillars

The report structures its recommendations across four pillars with culture as a “missing foundation.”
PillarFocusKey finding
Business capabilityStrategic, operational, and advisory supportOnly 4 in 10 scale-ups have a board; skills gaps in sales (53%), strategy (47%), brand building (41%)
TalentLeadership at every growth stageLow senior executive density; proposes Beckham’s Law-style incentive for ~50 relocated senior hires per year
FundingEnvironment for £10M+ revenue companies with 10x potentialCap table complexity and over-reliance on equity; deals above £10M rose from 8 (2019) to 17 (2024)
Market expansionEarlier, faster internationalisation8 in 10 scale-ups seek export markets; key targets are EU (59%), North America (54%), Middle East (38%)
Business capability. Strategic, operational, and advisory support for founders. Key finding: only 4 in 10 scale-ups have a board. Key skills gaps: sales and business development (53%), strategy development (47%), brand building (41%). Talent. Leadership talent at every growth stage. The report proposes attracting relocating executive leaders through a Beckham’s Law-style tax incentive pilot, targeting approximately 50 senior hires relocated or returned per year. Finland’s 20-day introduction to the ecosystem programme is cited as a model. Funding. Improving the environment for £10 million+ revenue companies with 10x potential. Average deal sizes have risen 110% since 2019, and deals above £10 million increased from 8 (2019) to 17 (2024). The constraint is not capital scarcity but funding model design — messy cap tables from angel rounds, over-dependence on equity when venture debt may be more appropriate, and limited funding literacy. Market expansion and internationalisation. Earlier, faster, more confident internationalisation. Eight in 10 Scottish scale-ups are looking to expand into export markets; six in 10 already export. Key markets: EU (59%), North America (54%), Middle East (38%).

​
Cultural barriers

The report identifies four cultural barriers as the “missing foundation”:
  1. Belief, will, risk, and resilience. A mindset shift from cautious to ambitious.
  2. Celebration of scale, not just start. The ecosystem celebrates launches more than sustained growth.
  3. Learning from failure. Clean failure remains stigmatised rather than normalised.
  4. Fostering operational ownership. Experienced operators recycling into the ecosystem as founders, board members, and mentors.

​
Key recommendations

The report proposes 15 recommendations. The most structurally significant:
  • Scottish Scale-Up Enablement Hub (SEH). A tech-enabled orchestration platform with an unremunerated board of scale-up operators, replacing the current fragmented support landscape.
  • Single Scale-Up Data Platform. Real-time view of all Scottish scale-ups with AI-powered predictive needs assessment.
  • Strengthen board capability. NED database, board training, best-practice framework with a target of 80% adoption by 2027.
  • Reform public co-investment. Cap Scottish Enterprise co-investments to two follow-on rounds. Consider 15-20% portfolio reduction. Introduce a right to sell on secondary market after 5 years.
  • Scale-Up Lane in Government. Fast-track visas, procurement, and planning for the top 25 highest-potential businesses, with response times reduced to 24 hours.
  • National Growth Culture Report. A 10-to-20-year entrepreneurial culture strategy targeting publication in 2026.

​
International benchmarks

The report cites several international models:
  • France La French Tech. 60+ communities abroad; government funds included €400 million Seed Fund, €1 billion Sovereignty Fund, €2.5 billion DeepTech Plan. Exceeded its 25-unicorn target ahead of schedule with record VC above €11 billion in 2022.
  • Estonia e-Residency. 100,000+ e-residents from 170+ countries creating 25,000+ companies.
  • Spain Beckham’s Law. 24% flat tax on Spanish-sourced income up to €600,000 for up to 6 years.
  • FinTech Scotland cluster model. Cited as the template for how all Scottish industry clusters should be organised.

​
Context

This report connects to themes explored across the Building Scotland conversation series — particularly Ross Laurie on 20-year planning, Andrew Williams on founder density, Robert Gelb on dependency culture, and Nick Sherrard on ecosystem spending accountability. The £230-per-head paradox paper and 20-year plan paper examine overlapping themes.