An angel investment fund backing the growth of indigenous firms has secured a new capital injection of £3m from the Welsh Government.
The Wales Angel Co-Investment Fund was launched in June 2018 with an initial £8m funding allocation. It provided match funding for 60 investments in 48 different businesses, which leveraged a further £10m from syndicated angel investors.
Angels Invest Wales now has more than 200 investors on its platform. By encouraging investment by business angels, the co-fund allows syndicates to bring their expertise to growth focuses businesses along with their capital, providing opportunities for mentoring, guidance and growth.
It has also allowed investors to drive innovation in key sectors and groups, including innovative green technologies, medtech and fintech.
From the new £3m around £300,000 is already allocated for syndicates that are progressing investment deals.
Angels Invest Wales has also helped to widen access to angel investment and attract new investors – including via Women Angels of Wales, which was founded with the support of the British Business Bank. The syndicate now has more than 50 members.
Deeside-based Polytag secured the backing of a syndicate of 15 female investors from Women Angels of Wales (WAW) in May last year with a combined investment of £100,000 that was match-funded with a further £100,000 from the Wales Angel Co-investment Fund. Rachel Ashley was the lead investor.
Led by chief executive Alice Rackley, Polytag uses data-driven technology to help retailers and manufacturers in the food and drinks industry to track the recycling of packaging. The business is playing a key role in the Welsh Government’s planned deposit return scheme by helping to track and return containers, and its technology is already being sought by operators in Europe, India and the United States.
Polytag recently won the Best Woman-Led Investment in Innovation category at the Ƶ Business Angels Association (ƵBAA) Awards.
Ms Rackley said: “The support we’ve had from Angels Invest Wales and the Wales Angel Co-Investment Fund was of real benefit when combined with the investment and insight we had from Women Angels of Wales. That allowed us to work on a successful blueprint for digitally tracking packaging and waste, which we’ve taken to other markets
“Wales is a world-leader in recycling, and Angels Invest Wales has helped us to take the solutions and best practices we provide to brands and companies worldwide.”
Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said: “The Wales Angel Co-Investment Fund has been a valuable addition to our business support system in Wales.
“We have added a further £3m to the fund to ensure even more entrepreneurial talent across Wales can access the finance they need to enable them to start-up, strengthen and grow.”
Tom Preene, fund manager for Angels Invest Wales, said: “We’re pleased that the Welsh Government has announced the further £3m in support for the Wales Angel Co-Investment Fund, which will allow us to continue to grow the angel community in Wales, connecting entrepreneurs seeking finance and expertise with business angels and syndicates.
We’re focused on diversifying the sources of deal flow opportunities available to businesses and engaging a wider investor base across all sectors in Wales Indeed, with more than 200 members, we’re now Wales’ biggest Angel network and we’re gaining real momentum having supported investment of £3.1m, and deployed £2m from the Wales Angel Co-Investment Fund in the last financial year.”
