Ecosystem Fund Guidance

About the Ecosystem Fund

The Ecosystem Fund ("the Fund") is designed to support organisations, groups, individuals and activities that will facilitate the growth and development of the Scottish entrepreneurial ecosystem by delivering high impact projects.

Building on the success of previous phases, this round of the Ecosystem Fund introduces greater flexibility to support innovative approaches to ecosystem development, while maintaining focus on creating a sustainable, inclusive and vibrant environment for Scottish startups and entrepreneurs.

This Fund is a Scottish Government initiative and is being delivered by Inspirent Ltd on behalf of the Scottish Government.

What are the objectives of the Ecosystem Fund?

The Ecosystem Fund aims to support organisations, groups, individuals that are actively enriching Scotland's startup ecosystem. The Fund will enable support organisations to better help Scottish entrepreneurs access the resources, knowledge and connections to thrive.

The Fund empowers organisations to create new projects or develop and broaden existing activities to beneficiaries. It welcomes creative and ambitious bids that could provide, for example:

• Skills development
• Ideas exchange and collaboration
• Expert guidance
• Greater levels of innovation
• Increased access to non-public funding channels
• Elevated visibility of Scottish entrepreneurs
• Access to support for typically underserved groups
• Inclusive and accessible entrepreneurial opportunities for all

The Fund is opportunity-focused, seeking initiatives that do not duplicate existing activity but fill gaps in the current ecosystem offering in Scotland. We are committed to supporting initiatives that enhance diversity, inclusion and accessibility within Scotland's entrepreneurial community.

What is the Ecosystem Fund for / not for?

Proposals are invited that will connect, educate and empower Scottish founders and startups. The Fund is designed to strengthen infrastructure, resources and support activities accessible to the pre-startup, startup and scaleup community. While the Ecosystem Fund seeks to nurture startups, it does not provide direct funding for individual companies to grow their businesses.

Applicants must articulate how they will deliver new initiatives or meaningfully improve existing ones, to increase and widen their benefit to entrepreneurs and startups and scale ups.

Applicant organisations will directly participate in and benefit from these programmes but may not apply for themselves to gain capital for their own operations.

The Fund is for new Projects (or broadening to wider groups of beneficiaries) that have a collaborative, ecosystem-wide impact, not activities solely benefiting a single organisation. The goal is to catalyse innovation and fill gaps in Scotland's entrepreneurial ecosystem.

Who should apply to the Fund?

The Fund is open, but not limited to:

Ecosystem builders: Organisations such as incubators, accelerators, dedicated entrepreneurial support organisations and community groups that support entrepreneurs through programming, resources and events.

Industry associations, third sector organisations and non-profits: Groups enabling early-stage entrepreneurialism and startup in the community locally or in their sectors.

Universities, colleges, and education/training programme organisations: Academic institutions looking to create new activity to foster entrepreneurial skills and innovation through curriculum or competitions, for example.

Established companies: Businesses looking to deliver new partnership projects with pre-startups, startups, scaleups or educational establishments through pilots, tech acquisitions or accelerator programmes.

Private organisations: Entities that are highly experienced in entrepreneurial development with proposals for unique initiatives to inspire ideas, connect and widen the community.

Individuals and informal networks: People or groups without formal organisational structure who play vital roles in connecting entrepreneurs, facilitating knowledge sharing or creating collaboration opportunities within their communities. We've removed the minimum funding threshold specifically to enable these grassroots initiatives to access support for their ecosystem-building activities.

Is my organisation eligible to apply?

The Fund is open to Proposals from organisations, individuals, and informal networks. Organisations must be Headquartered in Scotland, or have significant operations based here.

For individuals and informal networks, applicants should be primarily based in Scotland and demonstrate their connection to the Scottish entrepreneurial ecosystem.

Proposals can be from private, public* or third sector organisations or individuals seeking to develop or scale up initiatives which meet the objectives of the Fund.

We encourage partnership-based, collaborative proposals, including, where appropriate, collaborations with international partners. Only one organisation or individual may be designated the Lead Organisation and would be the organisation or person that will contract with Inspirent to receive the Award and be fully responsible for adhering to all terms and conditions of the Award.

To be eligible for funding, the Awardee must, where applicable, demonstrate good business practices, where relevant, including principles relating to Fair Work practice and a commitment to Net Zero. Applicants will have the opportunity to describe their approach to these areas in the application form.

*Local economic development groups and academic institutions are eligible; however, core government agencies and entities are not.

What kind of proposals are sought?

The Fund is open to proposals that support Scotland's entrepreneurial ecosystem. Sector or industry-specific proposals are welcome but should demonstrate how they contribute to the broader entrepreneurial ecosystem rather than focusing solely on a single domain.

While we have removed prescribed themes to encourage innovation, successful proposals typically demonstrate:

Strong Impact Potential: Proposals should clearly show how they will strengthen Scotland's entrepreneurial ecosystem. This might include improving access to expertise, creating valuable connections, developing new resources or addressing specific gaps in current support provision.

Innovation in Approach: We welcome fresh thinking in how to support entrepreneurs. This could mean new types of support, innovative delivery methods or creative ways to reach underserved communities.

Collaboration: Strong proposals often involve partnership approaches, bringing together different organisations or sectors to create more comprehensive support.

Future Planning: Where relevant, projects should consider how their impact might continue beyond the funding period. This could involve capturing learning, sharing resources or developing networks that can be sustained.

Diversity and Inclusion: We value proposals that embed principles of diversity, inclusion and accessibility in their approach. This includes considering how diverse entrepreneurs' needs are addressed, ensuring physical and digital accessibility, and creating a welcoming environment for all entrepreneurs regardless of background.

The types of activities encouraged, but not limited to are:

• Community-building and networking initiatives
• Projects connecting Scottish startups to international markets
• Initiatives improving access to investment
• Sustainable impact projects benefiting local communities
• Innovation in entrepreneurial support delivery
• Projects that reach historically underserved groups e.g., women, minority ethnic groups, people with disabilities, rural communities, etc.

How much funding is available?

The Fund offers two tiers of funding:

• Tier 1: £0 to £9,999
• Tier 2: £10,000 to £40,000

There is no minimum funding threshold – we especially welcome applications for small-scale, grassroots initiatives that can have a meaningful impact on the ecosystem. We recognise that many grassroots and community-led initiatives have been traditionally underserved by public sector funding, and we're committed to nurturing these vital components of Scotland's entrepreneurial community.

For example, a group of university students organising regular entrepreneurial meetups, a community organisation hosting local networking events or an informal collective of entrepreneurs providing peer support could all apply for modest amounts to support their activities.

The maximum funding available is £40,000 per project.

Application Process and Requirements

The application process has been designed to be proportionate to the funding requested. All applicants will complete an initial screening form, after which they will be directed to either the Tier 1 or Tier 2 application form, depending on the amount requested.

Tier 1 Application (£0 - £9,999)

For smaller funding requests, we've created a deliberately simplified application process that focuses on the basics. This streamlined approach is specifically designed to be accessible to grassroots organisations, informal networks, individuals and community groups that may have limited experience with public funding applications or administrative capacity:

• Project Description (200 words): What you're proposing to do, why it's needed, and how it will benefit entrepreneurs in Scotland
• Expected Outcomes (150 words): What you hope to achieve, who will benefit, and how you'll measure success
• Delivery Plan (150 words): How you'll implement the project and your timeline
• Budget: A simple itemised budget showing major cost categories

We recognise that many valuable contributions to the entrepreneurial ecosystem come from smaller, less formalised groups that have traditionally faced barriers in accessing public funding. Our simplified Tier 1 process aims to remove these barriers and encourage applications from a diverse range of community-led initiatives.

Tier 2 Application (£10,000 - £40,000)

For larger funding requests, we require more detailed information:

• Project Overview (500 words): Comprehensive description of the activity, addressing ecosystem gaps and benefits to target beneficiaries
• Impact and Outcomes (400 words): Expected outputs, longer-term outcomes and evaluation methodology
• Delivery Approach (400 words): Implementation plan, timeline, resources and risk management
• Future Plans (300 words): How the project might continue or evolve to become self-sustaining over time, potential resources or partnerships and long-term impact
• Experience and Capability (300 words): Details of partnerships, team experience and evidence of successful delivery
• Budget and Resources: Detailed breakdown with justification and additional funding sources

How will proposals be assessed?

Proposals will be assessed in 3 stages:

Eligibility: Eligibility checks will be carried out to ensure that your organisation or application is a suitable potential Awardee. This will include, but is not limited to, having the HQ or substantial operations in Scotland (or for individuals and informal networks, being primarily based in Scotland), having no flags or sanction registered against your organisation or individual on Companies House or relevant registries, passing legal Sanctions checks, adherence to governance checks.

Specialist Assessment: Our teams of assessors will review Proposals against the assessment criteria relevant to your tier.

Final Decisions: A final Validation Panel of senior representatives will meet to review the assessors' scores and agree the final distribution of the Fund according to the quality of the -proposals and availability of Funds. The decisions will be final.

Following the final decisions, all applicants will be informed of the outcomes of their proposal. Organisations can request feedback on the outcome of their application.

Reserve List: All eligible applications that meet the quality threshold but cannot be funded due to budget limitations will be retained on a reserve list. Should additional funding become available later in the financial year, we may fund projects from this reserve list without requiring reapplication. Applications will remain on the reserve list until the end of the financial year (March 2026).

Assessment Criteria

Tier 1 Assessment (£0 - £9,999)

• Impact Potential (40%)
• Delivery Capability (30%)
• Value for Money (20%)
• Innovation (10%)
• Tier 2 Assessment (£10,000 - £40,000)
• Impact Potential (35%)
• Value for Money (25%)
• Delivery Capability (20%)
• Future Sustainability (10%)
• Innovation and Creativity (10%)

How will funding be awarded?

Successful applicants will receive a contract award letter by email. The contract will outline the total grant awarded, the approved milestones, and the corresponding grant payments for each milestone. Once a milestone has been achieved, applicants must upload evidence of completion along with proof of eligible expenditure. Following verification, the grant payment will be made to the nominated bank account.

When must projects be delivered?

All proposed activity must be delivered, and all project costs incurred by 31st March 2026.

As well as based on quality, projects will be assessed for feasibility of delivery within this timescale. Therefore, be ambitious, but realistic when submitting your proposal.

Where should projects be delivered?

We want activity to be as accessible as possible and therefore welcome project delivery taking place anywhere across Scotland, and especially in disadvantaged areas where beneficiaries may have additional challenges in accessing entrepreneurial support activity.

International visits within the scope and objectives of the Fund are also welcomed as a means of showcasing Scottish entrepreneurial talent overseas and building networks with international supporters and potential investors.

What is the timeline?

• Fund Launch: 22nd April 2025
• Applications Open: 22nd April 2025
• Information Sessions: April 2025
• Application Deadline: 5pm 20th May 2025
• Assessment Period: May/June 2025
• Funding Decisions: End of June 2025
• Project Implementation: From award - June 2025
• Project Completion: By 31 March 2026
• Final Reporting: By 30 April 2026

Can our organisation submit more than one proposal?

If the projects are entirely distinct from one another, e.g., with different objectives and outcomes, you may submit more than one proposal. Please note that approval is by project, and not by organisation. Therefore, each proposal will be assessed on its own merits.

Can our organisation apply on behalf of a partnership or collaboration?

The assessors welcome proposals that can scale up activity or reach broader audiences through collaboration. Collaborative activity is therefore strongly encouraged. Ensure that all partners are mentioned in the proposal Form.

Only one organisation or individual may be deemed the Lead Organisation (preferably the larger or more established organisation or, in the case of informal networks, a designated representative). The Lead Organisation or individual will be fully responsible for the contractual and legal obligations and conditions of the award and should therefore have the processes in place to contract, accept legal liability for the contract, submit invoices and any required evidence on time.

How will the project(s) be monitored?

Awardees will be required to have monthly 'check ins' with an allocated Business Growth Partner from Inspirent. Any delays, elevated risks or problems with the project that could impact on ability to spend the award as agreed in the contract, must be communicated to your allocated Business Growth Partner immediately.

All Projects must be actively managed on that basis as milestone payments are dependent on planned activity taking place.

The Lead Organisation will be asked to complete a survey at the end of projects so that we can collect feedback and confirm the outcomes from all projects. This Survey will be repeated after 12-18 months to gather evidence of the longer-term impacts of Funded activity. Appropriate record-keeping is therefore important.

Can the project be changed once the award is made?

Some minor changes to projects are to be expected, e.g., event dates being moved, number of participants fluctuating, programmes being altered to better fit the participants etc. However, awardees must be proactive about staying in touch with the Inspirent Contact to be sure that any changes are made known, any unforeseen impact on the Contract is discussed and managed as appropriate.

Moderate or significant material changes to your project must be proposed and discussed in advance with the Inspirent Contact and may mean, in some cases, that an Amended Contract is required. This could impact on the amount, terms, and conditions of the award, so ensuring that any changes to projects, big or small, are done with prior agreement to avoid any issues.

What if we cannot deliver the Project, for any reason?

At any point where you become aware that your proposed project is not going to be deliverable, inform the Inspirent Contact as a matter of urgency. They will work with you to explore any potential solutions. Only in circumstances where no alternative solution can be found, would we void your contract and your entitlement to the award would be withdrawn. Any milestone payments provided in advance of planned activity which does not take place, may be recoverable.

What is eligible and non-eligible spend?

All proposed spend should be justified as proportionate and appropriate for successful delivery of the aims of the Project.

Eligible Spend

Including but not restricted to the following:

• Venue and catering costs for in-person events
• Event printing collateral; signs, badges
• Digital collateral to promote or support events/initiatives e.g., licensing/hosting, website updates, content, marketing, PR, media buying
• Event management fees
• Event delivery fees e.g., staging, AV, signage
• Speaker / Special Guest Fees
• Content production e.g., videos, toolkits, guides and other information or learning materials
• New staff costs (contractors, freelancers, fixed term hires) directly attributed to the project delivery and for the duration of the project only (NB: existing staff costs are not eligible)
• Community group compensation; honorariums/fees for local community groups/charities/CICs/volunteers contributing to projects
• Supporting or providing childcare services to make events more accessible to parents/carers
• Providing accessibility accommodations e.g., adaptations to marketing, operational delivery of events, sign language interpreters, wheelchair ramps, assisted listening devices at events or venues/locations
• Converting existing materials e.g., content/website/resources to be more inclusive and accessible
• Documentation: Videography, photography and transcription services to document and share event content
• Transport e.g., costs for participant, speaker/guest mileage, bus, rail and flights where necessary. The lowest carbon option should be chosen wherever possible. Note: costs towards any flights must be economy for flights within the UK and EU. Contributions must be economy, premium economy or business class for flights out with the EU. First class flights or rail travel is not eligible
• Accommodation – speaker/guest/participant accommodation can be contributed to or covered where necessary and proportionate to the event and outputs of the project
• Consultancy costs where directly delivering activity for and with early-stage entrepreneurs
• Staff Training – is eligible where it has a direct relevance to the specific entrepreneurship project e.g., net zero, fair work, disability awareness
• Business advice/mentoring fees where directly delivering activity for and with early-stage entrepreneurs
• VAT – where organisations are not VAT registered, this is eligible and can be included in your costs against this project
• Other costs associated with the delivery of the project as described in the application that are fair, appropriate and proportionate to the proposed outputs.

Ineligible Spend

Including and not restricted to the following:

• Existing initiatives - Proposals should preferably be for new activities or existing activities that are being significantly developed/scaled up to reach broader groups and widen participation/accessibility. This Fund is not for ongoing programmes, or core costs
• Existing staff costs that constitute your business-as-usual obligations should not be included. However, where a case is made for redeployment of staff(s) on a full or part-time basis to deliver the specific project, this will be considered on a case-by-case basis
• Business as usual, operational costs – anything that the organisation would have to pay for anyway, regardless of this project, business travel/meeting costs, general staff training/CPD
• Capital costs; purchase of facilities, equipment, hardware
• Professional Service Fees – accounting, legal, insurance fees incurred in the course of business as usual or project delivery
• VAT – where organisations are VAT registered, VAT is not eligible and cannot be included in your costs against this project
• First class travel by rail/air is ineligible
• Superfluous accommodation costs are not eligible e.g., over-staying, or where the accommodation was unnecessary for the delivery of the outputs of the project.

Awardees must retain all records, receipts and invoices for a minimum period of three years following the close of the contract. Payment of the grant will be only be made upon submission of proof of eligible expenditure.

Where spend cannot be evidenced, there is a right to claw back funding.

Supporting Diversity, Inclusion, and Entrepreneurial Education Within the Ecosystem

While this Fund does not have separate thematic pillars (as previous rounds did), we recognise the importance of building a more diverse, inclusive and educationally enriched entrepreneurial ecosystem in Scotland.

Women's Entrepreneurship

Increasing women's participation in entrepreneurship remains a key strategic priority for Scotland's economic development. The Pathways Review highlighted significant gaps and barriers that continue to limit women's full participation in Scotland's entrepreneurial ecosystem. While this is not a separate fund exclusively focused on women entrepreneurs (like the Pathways Pre-Start Fund), we encourage all applicants to consider how their proposals can incorporate approaches that will specifically benefit women entrepreneurs within their broader ecosystem development activities.

This might include:

• Ensuring women are represented in project delivery teams and leadership
• Incorporating specific outreach strategies to engage women entrepreneurs
• Addressing known barriers such as access to networks, investment readiness or mentorship
• Collecting gender-disaggregated data to measure participation and impact
• Creating networking opportunities that are accessible to women with caring responsibilities

Entrepreneurial Education

For Scotland to be a successful entrepreneurial country, we must recognise the importance of harnessing entrepreneurial ambition at an early stage. Our entrepreneurs and innovators of tomorrow are in our classrooms today and supporting them is key to realising our ambitions.

While this is not a separate fund exclusively focused on entrepreneurial education (like the Entrepreneurial Education Pathways Fund), we welcome proposals that incorporate entrepreneurial education elements within broader ecosystem development approaches. Such proposals should demonstrate how they contribute to implementing the actions of NSET and the Entrepreneurial Campus recommendations.

Other Underrepresented Groups

Similarly, we encourage consideration of how proposals can increase participation from other underrepresented groups, such as those from ethnic minority backgrounds, people with disabilities, those from disadvantaged socio-economic backgrounds and entrepreneurs in rural or remote areas.

Applications that thoughtfully integrate approaches to increase participation from underrepresented groups or enhance entrepreneurial education as part of their broader ecosystem development objectives will be viewed favourably in the assessment process.

Private Sector Participation

We encourage proposals that include private sector participation, whether through direct partnerships, co-funding arrangements or in-kind support. While not mandatory, involving private sector organisations can help strengthen projects by:

• Providing additional resources and expertise
• Creating pathways to sustainability beyond the funding period
• Building connections between startups and established businesses
• Opening access to potential investors and customers.

Applicants without existing private sector relationships are still encouraged to apply. The Fund may be able to facilitate introductions to relevant private sector organisations where appropriate.

How to apply?

Please ensure that:

1. Your organisation is eligible to apply to the Fund

2. Your proposed project(s) align with the objectives of the Fund

3. Your proposed use of the funds are classed as eligible spend

4. You have fully completed all sections of the Application Form

Contact the delivery team at enquiries@ecosystefund.co.uk with any queries prior to submitting your application.

Where can I get help to complete my application?

Inspirent, our delivery partner, will promote online sessions where you can access support to help you prepare your application.

You can also find answers to common queries on the Ecosystem Fund website, which hosts a Frequently Asked Questions section and short video reels explaining the application process.

All applications must be submitted online

How long will you keep my application?

Should your application be eligible but initial funds exhausted we will retain your application until 31 March 2026 to save reapplication in the case of future funding becoming available later in the year.

Feedback on Your Application

Whether successful or not, all applicants can request feedback on their submission. For successful applicants, this feedback may highlight particular strengths in your proposal or suggest areas where additional focus might enhance your project delivery. For unsuccessful applicants, feedback can provide valuable insights to strengthen future applications, either for subsequent rounds of this Fund or for other funding opportunities.

To request feedback on your application, please contact enquiries@ecosystemfund.co.uk within 30 days of receiving your application outcome.

Your Feedback on the Fund

We are committed to continuously improving the Ecosystem Fund to better serve Scotland's entrepreneurial community. Your insights on the application process, guidance materials and overall experience are invaluable to us.

After the application period closes, all applicants will receive a short survey inviting them to share their experience. Additionally, awardees will have opportunities throughout their project delivery period to provide feedback on the management and support processes.

You can also submit feedback at any time by emailing . Your suggestions will be considered for future iterations of the Fund.