State-owned British Business Bank has launched a £150 million investment fund for small Scottish businesses.

The bank said the fund will drive sustainable economic growth by supporting new and growing businesses across the whole of Scotland through investment strategies that “best meet the needs” of such firms.

The fund, which comes despite British Business Bank having recorded over £135 million in losses in its latest financial year, represents the first UK government-backed investment fund for smaller businesses in Scotland.

“With this fund for Scottish businesses, we hope to open the doors to new opportunities for a range of smaller firms looking to get started, grow, and develop across different sectors,” said chief executive of the British Business Bank Louis Taylor. “We know that access to finance is a key concern for small businesses and are committed to ensuring that founders from all over the country have the same prospects in terms of finance, no matter where they are based.”

On its recent financial year losses, Taylor said they had been driven by an expected drop in valuations across its portfolio.

“Given the longer-term 10-year horizon for most of our investments we would expect an overall upward trajectory despite these in-year fluctuations,” he said.

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