It is often said that Wales has too many businesses with an aversion to taking equity because of a perceived loss of control, especially amongst owner-managed SMEs.
But here we feature a number of firms, across a range of sectors, that see equity as crucial to realising their growth and job creation plans; based on the adage that it's better to have say a 51% stake in a £50m valuated business that 100% in one valued at £20m, as well as often benefiting from the expertise and access to new networks that investors can bring.
Sonovate
One of Wales' leading fintech firms has secured a £110m investment boost to fuel its ambitious global expansion plans.
Sonovate, the 海角视频’s leading finance and back-office tech provider to recruitment agencies and consultancies, has secured debt and equity finance, in a funding round led by M&G Investments, MXB Holdings Inc, Dawn Capital and Rocket Internet SE.
This latest investment follows series B funding secured in October 2016, led by Global Founders Capital, the investment vehicle of Rocket Internet, and supported by Dawn Capital.
Dawn also led Sonovate’s Series A funding round earlier that year.
The new funding will allow the company to advance its core product offering, reach into new international markets including Germany, the Netherlands and America and optimise finance for SME and mid-market businesses.
Sonovate, which employs 72 at its Cardiff head offices and 24 in its London office, was founded in 2012 by Richard Prime and Damon Chapple. Its tech driven offer provides upfront funding against unpaid invoices.
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Since then it has funded nearly £1bn of invoices and paid 16,500 contractors. More than 2,400 businesses now use Sonovate.
Sonovate has not disclosed the funding split between debt and equity and what percentage of ownership it has given up.
MoneyShake
A car-leasing price comparison start-up venture has been boosted with a £500,000 seed-funding equity investment.
Cwmbran-based Moneyshake.com helps consumers find the best lease deals quickly by comparing prices from the 海角视频’s leading providers. Its founder and chief executive is Eban Lovatt.
The £500,000 equity investment has been provided by the Development Bank of Wales and serial entrepreneur Tim Scholes, a private investor and experienced strategy professional.
Research from the British Vehicle Rental and Leasing Association (BVRLA) Âreveals there are more than 5 million leased cars on the road in the 海角视频.
Last year, the consumer car market saw the highest level of growth in the leasing sector at 14%.
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The company currently employs four, but is now looking to expand significantly during the next 12 months creating a range of senior technology, marketing and management jobs.
Wagonex
Wagonex, the Cardiff-based car subscription marketplace platform, has been boosted with a significant equity funding round as it looks to bolster growth in the 海角视频 and overseas
The investment round was led by the Development Bank of Wales technology ventures team co-investing with US investors and 海角视频-based angels with a final close to complete after the summer.
Wagonex has been a leading name in vehicle subscriptions since its inception and now works closely with several global vehicle manufacturers.
Chief executive and founder Toby Kernon said, “We are delighted to have the opportunity to work with such an experienced and active investment company as the Development Bank of Wales and that they recognise the potential for Wagonex. Our international investors and global client base offer an incredibly exciting opportunity to build a successful and sustainable business.
“We are very proud to be based in Wales and very pleased with our new Head Office at Tramshed Tech in Cardiff.
“With this investment we can accelerate the development of the business, expand our product suite and remain a market leading name in vehicle subscriptions.”
Delio Wealth
Leading fintech firm Delio Wealth has secured a £3.3m equity investment to support its global scale-up plans.
The Cardiff-based company is also creating 15 jobs on the back of the investment, in a round backed by Maven Capital Partners (lead investor in the round with £2m and existing investors) that will extend its presence throughout Asia, the Middle East and America.
It will be increasing its headcount by 30% over the next six months.
The disruptive financial technology provider will move into a new office in the centre of Cardiff later this year, progressing and cementing its ambition to create a fintech hub in the capital.
It creates white-label private market technology platforms for financial institutions.
Since its creation in 2015, Delio Wealth has gone from strength to strength, trebling its customer base in just 15 months, working with the likes of Barclays, ING, Coutts and the newly formed 海角视频 Fintech Alliance.
The fintech sector is worth an estimated £8.2bn to the Welsh economy, employing more than 44,000 people.
Its chief executive, Gareth Lewis, who co-founded the business with David Newman, said: “This is an exciting time for the Delio team and a huge opportunity for us to make our mark on a global scale. To receive support from Maven highlights the growth opportunity in the business and in the private markets as a whole. As the industry continues to grow, it is vital we grow with it.”
Supported by its recruitment partner, Acorn, Delio is creating well-paid tech jobs.
Plimsoll
One of the 海角视频’s leading independent television production companies, Plimsoll Productions, has secured a multi-million-pound investment boost from LDC to support its ambitious growth plans.
Headquartered in Bristol with offices in Cardiff and Los Angeles, the deal values the award-winning company, whose productions include Hostile Planet with Bear Grylls, at £80m.
Mid-market private equity firm LDC has taken a minority stake in the business, the exact size and value of which hasn’t been disclosed. Plimsoll will continue to be led by its founder and chief executive, Grant Mansfield.
The company distributes to more than 50 countries worldwide through Magnify Media, a company it took a significant stake in three years ago.
For its financial year ending August 2019, the business is on track to generate sales in excess of £35m.
As well as Hostile Planet withBear Grylls (National Geographic) its portfolio of productions also includes: Yellowstone Live (National Geographic); Rescue Dog to Super Dog (Channel 4); Britain’s Parking Hell (Channel 5); Life at the Extreme (ITV), and Sit Baby Sit (Channel 4).
It is currently producing multiple unannounced series for leading streaming video on-demand platforms.
LDC said its backing would support the firm’s ambitious management team to continue to drive the business forward, invest in its natural history and documentary divisions, as well as supporting expansion into the US and new global markets.
Deal-maker LDC was advised by KPMG Corporate Finance, Osborne Clarke, Oliver & Ohlbaum and Deloitte.
Plimsoll Productions was advised by ACF Investment Bank, Westbrook Advisers and PwC.
Tosca Debt Capital provided the banking package and was advised by DLA Piper.
QuoteONsSite
Swansea-based tech start-up QuoteONSite has secured £350,000 in equity seed funding.
It said the backing from the Development Bank of Wales and Deri Green, will facilitate aggressive growth over the next 12 months.
Angel co-investor Deri Green has invested £200,000 with a further £150,000 of equity coming from the Development Bank of Wales Technology Seed Fund. Mr Green was introduced to the investment through Angels Invest Wales, the Development Bank of Wales’ business angel network.
Four staff have been hired following the funding round, with plans to expand the team over the next year. The £350,000 seed round will also support user experience, research and software development on top of a comprehensive sales and marketing plan.
QuoteOnSite is a platform that streamlines the quote management process for businesses of all sizes from start-ups to established enterprises.
For businesses that still rely on traditional methods of quoting QuoteOnSite provides a solution to the lack of visibility, traceability and analytics that form an integral part of a successful sales process.
Customers can supply their data and choose from a menu of products directly on the business’ website via an integrated contact form. This reduces time wasted on duplicating data-entry from traditional contact forms into downstream CRM systems.
The husband and wife team behind QuoteOnSite, TJ and Elaine Amas, identified the need for a quoting tool within the trade and construction industry.
After two years of working on development and a huge amount of testing, QuoteOnSite officially launched in 2017. Since then their tool has been adapted for use across multiple sectors and enables any business or sole trader to provide easily accessible quotes to customers.
The couple have successfully grown the business while still working and raising their young family.
Hut Six
One of Wales’ most innovative start-up firms has secured a significant investment boost as it move towards scale-up in a sector worth £1bn and growing.
Hut Six, which came out of the Alacrity Foundation entrepreneurship programme in Newport, has secured a new £450,000 equity investment in a funding round that included the Development Bank of Wales, as well as existing and angel investors.
It has developed a series of software-based cyber security products that raise awareness and indicate appropriate corrective behaviour amongst IT users to combat the techniques and ruses used to breach an organisation’s security procedures.
By minimising the risks of human error, Hut Six supports organisations in creating a responsible, security-conscious culture. Gartner, the technology market research specialists, has estimated the current information security awareness (ISA) market at nearly £1bn annually, with estimated growth at 13% year on year.
Computer-based training is the largest single segment of the ISA market, accounting for over 25% of revenues.
Its first investment was initial seed funding from Sir Matthews’ investment vehicle Wesley Clover.
The latest funds will support the company’s domestic and overseas expansion through additional operational support as well as increasing sales and marketing activity.
Acquis Insurance Management
Newport-headquartered Acquis Insurance Management has been acquired in a management buy-out backed by mid-market private equity house Dunedin.
The deal will enable the current management team, led by CEO Nick Leader, to drive the business’ international growth with support and funding from Dunedin. The value of the deal has not been disclosed. Acquis had a turnover of £5.7m in its last financial year to the end of October, 2018
Founded in 2009, it provides leasing companies with insurance for leased equipment and is currently placing insurance in thirteen countries across Europe.
Blue-chip clients include Investec Asset Finance, BNP Paribas Leasing Solutions, Siemens Financial Services, Société Générale Equipment Finance and Deutsche Leasing.
The company employs 38 people. Following Dunedin’s investment, Acquis plans to grow its team and expand into new markets, particularly in Europe where the business has recently opened a new office in the Netherlands.
Acquis will also invest in developing new products to meet a broader range of client needs. HSBC provided senior debt together with a revolving credit facility.