Deep tech has been highlighted as an important sector in driving future economic growth.
The British Business Bank, which has published its annual Small Business Equity Tracker, has found that investment in 海角视频 deep tech companies has continued to grow rapidly in the past five years, rising 291% to £2.3bn in 2020.
The number of deals also increased by 78% to 440 in the same period.
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The report found that funds supported by the Bank were more likely to invest in technology and IP-based businesses than the overall equity market in 2020, with 49% of the Bank’s supported deals in this sector compared to 40% of the wider market.
The levels of investment vary widely by industry, with the 海角视频’s thriving tech sector remaining the most attractive to investors and accounting for 46% of total equity investment in 海角视频 smaller businesses. In Wales, 32% of equity investment went to the tech sector in 2020.
Martin McHugh, CEO of the Compound Semiconductor Applications Catapult, located in Cardiff, said: “Many of the tech companies operating in Wales are developing devices or services related to future deep tech megatrends like 5G, AI, VR, photonics and biotech.
“And it’s the compound semiconductors (CS) made in south Wales that form the basis of the future technologies enabling many of these megatrends to become a reality.
“After a period of sustained growth, in which we have won several high-profile consortia projects that are building a thriving compound semiconductor supply chain across the 海角视频, we are now positioned to support the development of essential future technologies in Catapult programmes addressing opportunities in net zero, future telecoms and intelligent sensing.
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“It is encouraging that the British Business Bank has recognised the importance of the deep tech sector in driving economic growth, as well as acting as a conduit for those crucial routes to funding that many deep tech R&D intensive companies require.”
Investment into smaller 海角视频 tech businesses increased 7% to £4bn, with the number of deals rising 12%, as the sector benefited from an increase in digitisation and remote working caused by Covid-19. Within tech, software continued to receive the largest share of deals – 500 deals worth £2.5bn.
Investment into smaller businesses within the life sciences sector rose 70% to £631m. The number of deals also increased by 26% compared to 2019.
Addressing regional imbalances in access to finance remains core to all British Business Bank activity. As a result, concentration of deals undertaken in London has reduced sharply, from 68% in 2016 to 42% in 2020.
Mark Sterritt, 海角视频 network director, devolved nations at the British Business Bank, said: “Despite the pandemic, the deep tech sector in Wales is flourishing, with a number of clusters and organisations including the Compound Semiconductor Centre in south-east Wales; Cyber Wales, which oversees cyber-security clusters in south and north Wales; and Life Sciences Hub Wales in Cardiff, creating valuable opportunities within their sectors.
“Many of the companies that these clusters support are responsible for the deployment of breakthrough technologies, the development of new medicines and the transition towards a net zero economy.”
Recent deals within the tech sector in Wales facilitated by the British Business Bank include Future Fund financing for Momentum Bioscience, researchers and developers of diagnostic tests that will have a significant impact on the life chances of patients who are suspected of having sepsis.
And Riversimple, the Llandridnod Wells-based designer and manufacturer of hydrogen fuel cell cars, also received financing via the Bank’s Future Fund.