The British Business Bank said that £18m has been deployed to date from its £130m Investment Fund for Wales (IFW) to back the growth of indigenous SMEs.
The economic development bank of the Ƶ Government launched its first dedicated fund for Wales in November 2023.
It consists of three pots with the small debt element offering loans from £25,000, to £100,000 managed by BCRS, larger loans of £100,000 to £2m, managed by Development Bank of Wales subsidiary FW Capital, and equity investments up to £5m,managed by Foresight. The British Business Bank has not disclosed what has been invested from each pot.
Some £40m for the fund was held back at launch for future deployment. The British Business Bank said a process for allocating part of the investor reserve will commence later this year with an expectation of it being deployed in the third year of the fund.
Foresight has to date made five equity investments with a number of other deals close to being signed off. It is managing an equity pot of £50m.
Across its three element IFW has backed 67 businesses located across Wales, which has leveraged an additional £3m of private sector co-investment.
Equity investment deals have included £1m into Brecon-based gamified cyber security learning platform SudoCyber and a significant investment into Cardiff-based AI start-up, Nisien.AI. Its other equity investments were into Evertrek, Assured Insight and Drone Evolution.
Debt deals include £100,000 for Sgiliau Play Centre to facilitate opening a new site in Llanelli and £100,000 into Hirwaun-based cake wrapper manufacturer, Chevler, which is the Ƶ’s leading manufacturer of packaging used in the baking and sale of cakes and muffins.
Mark Sterritt, investment director at the British Business Bank, said: “It’s been almost eighteen months since the launch of the Investment Fund for Wales and during that period the fund has really gathered momentum, developing both a history and pipeline of investment deals into Welsh businesses that we are positive will enable them to realise their potential.
“Additionally, the Investment Fund for Wales aims to crowd in private capital, ultimately increasing the amount and diversity of available equity finance. With this in mind we will be working hard to leverage private capital investment over the course of the fund life.
“As the fund matures in the years ahead we expect to see significantly more private capital enter the Welsh investment market, as later funding rounds bring in more specialist investors.”
