The Scottish National Investment Bank has reported a net loss of £138m for the last financial year, a figure it describes as 'painful' but, you know, educational. The state-owned lender pointed the finger at the collapse of three early investments, including its very first, the Glasgow-based laser company M Squared.

But it's not all doom and gloom: the bank also raked in £32m in income, comfortably covering its operating costs of £20m. So, it can pay the electricity bill, just not the investment portfolio. Chairman Willie Watt called the losses 'painful' but insisted the bank has 'learned lessons' - which is bank-speak for 'we'll try not to do that again.'

The bank, set up by ministers in 2020 to fund business and innovation for economic growth, revealed a net loss of £138m for the 2025-26 financial year. This includes £65m in realised losses from the failure of M Squared Lasers, electric car charging firm Trojan Energy, and satellite and digital company Krucial. An additional £85m in unrealised losses came after rocket manufacturer Orbex and medical tech firm Pneumowave entered administration.

In a twist that surprises no one, the bank also invested a record £374m in Scottish ventures, while keeping operating costs below budget. So, they're spending more, losing more, but at least they're doing it efficiently.

Watt lamented the tough economic environment, citing 'tighter financial conditions, cautious sentiment and more challenging fundraising.' He added, 'We have learned a lot over the past five years and continue to improve and tighten our investment processes along with stricter criteria for potential investments.' Chief executive David Ritchie called the losses 'regrettable and disappointing' but vowed to show that a 'commercially disciplined development bank can deliver for Scotland.' We'll see about that.

For the record, M Squared Lasers was once hailed by Nicola Sturgeon as 'a great example of the ambitious and innovative companies we have here in Scotland' when the bank launched in 2020. It went into administration in 2025 with debts of £64m. Trojan Energy, an Aberdeen-based EV charging firm, collapsed with debts of almost £30m. Krucial, a Glasgow satellite tech start-up, folded last year. Orbex, which planned a satellite launch facility in the north-west Highlands, is to be liquidated. And Pneumowave, a Glasgow medical tech firm, appointed liquidators in July.

Since 2020, the bank has invested over £1.2bn in 53 ventures and helped raise £1.9bn in third-party investment. An independent report by Sir John Elvidge, a former chief civil servant to the Scottish government, expected losses of about £110m by the end of 2025-26 - so they exceeded expectations, just not in the good way. Elvidge said the bank should learn from the losses but didn't think the scale was necessarily higher than expected for a new body.

First Minister John Swinney defended the bank, saying it must take risks to deliver 'greater economic returns' and build 'an economy that is fit for the 21st Century.' Meanwhile, opposition politicians had a field day. Scottish Labour's Daniel Johnson said the losses 'must be examined.' Reform UK's Kim Schmulian accused the SNP of 'gambling with taxpayers' money' and 'dressing up failure as a challenging environment.' Scottish Conservative Craig Hoy warned the bank must not become 'another SNP vanity project where taxpayers are left to foot the bill for failure.'

Ah, politics: where one person's 'learning experience' is another's 'vanity project.' The bank's journey continues, presumably with more 'lessons' to come.