Edinburgh AI startups secure £64 million funding

Two Edinburgh-based artificial intelligence companies have secured a combined £64 million in new funding this week, highlighting investor confidence in Scotland's technology sector while underscoring a broader, more selective funding environment.

Wordsmith AI, a legal technology startup, raised £52 million in a Series B funding round led by Highland Europe and Index Ventures. The company, which uses AI to help corporate legal teams manage contracts, draft documents, and handle routine inquiries, plans to use the capital to accelerate platform development, expand its global headcount toward 300 by year's end, and intensify its push into the U.S. market. The firm, co-founded by former Skyscanner executive Ross McNairn, now serves more than 500 corporate clients, including BT Group, the Financial Times, Sage, and Canva.

Separately, Aveni, a financial technology company spun out from the University of Edinburgh, secured £12 million in a funding round led by PXN Ventures. The company develops AI tools for the financial services sector.

The investments arrive as data indicates a shift in the UK's risk capital market toward fewer, larger deals. A recent report covering 2025 noted that...