Wales consistently punches above its weight when attracting, fostering and growing fintech businesses.
In a continually scaling sector, fintech companies use technology to solve financial problems and produce innovative services for businesses and consumers in traditional financial services like banking, lending, and insurance.
The development bank has been able to attract co-investment from specialist venture investors both inside and outside of Wales. It has joined with international supporters and leveraged Welsh Government backing to support companies– and has widened and strengthened syndicates through Angels Invest Wales -our largest angel investment network.
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One company which saw early investment from the Development Bank before going on to increasingly successful funding rounds is Coincover. Founded in May 2018, the company is providing an international standard for blockchain and crypto protection, with a platform which protects users and investors from theft, user error or infrastructure failure.
In November 2018, Coincover raised early-stage funding from a syndicate of business angels led by Ashley Cooper and match funding from the Wales Angel Co-investment Fund.,
In 2021, the company went on to raise $9.2m in a Series A round led by Element Ventures, and further support from the Development Bank.
Following, a fantastic 2022, Coincover raised $30m round led by Palo Alto-based investment firm Foundation Capital.
And subscription provider Wagonex has seen 120% year-on-year growth since it relocated to Cardiff in 2019, following an initial equity investment from the Development Bank. Their tech allows vehicle suppliers to offer subscription options to consumers, covering credit decisions, insurance, road tax, servicing and others.
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The development bank backed Wagonex with a third round of equity in October, following the announcement of a first investment by Admiral Pioneer.
Two seed stage companies attracted to set up in Cardiff following backing from the development bank are recently-founded Agam and Driverly.
AGAM – meaning “advance” in Bangla- helps workers in Bangladesh build up their credit score, thanks to an algorithm based on their financial literacy, access to finance and confidence.
Its digital nano-loans service platform, PrimeAgrim, was piloted in the country with the support of Prime Bank, a leading commercial bank.
Founder and CEO Shabnam Wazed, 30, is a graduate of the FinTech Wales foundry programme
Former Admiral employees Armin Kia and Nestor Alonso, along with Mohammad Alina founded Driverly which provides a flexible, subscription-based car insurance service which monitor the customers’ driving behaviour throughout their policy term, and adjusts prices based on this behaviour and market conditions.
At the development bank we’re pleased to support start-up and scaling-up companies in Wales’ fintech sector. They’ve brought pioneering, tech-based solutions into fields where traditional providers may have been slow to advance, rapidly creating opportunities for development and improvement in fields as diverse as trading, banking and vehicle hire.
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As Cardiff - and Wales more broadly - provide increasingly attractive spaces for fintech companies looking to relocate or start up, we’re seeing a strengthening and growing ecosystem for investors and start-ups alike.”
Steve Holt, director at Angels Invest Wales said: “We have been able to play an active role in fostering Wales’ growing fintech sector by introducing experienced investors with extensive sector knowledge and experience of successfully growing similar businesses.”
Their advice and expertise can also be worth just as much as their financial backing and support to integrate into the right networks can bring out the very best in fintech companies which make Wales their home.