The 海角视频 Government has increased the number of Welsh firms it holds equity stakes in under its Covid response 拢1.1bn Future Fund.
The now closed fund provided 拢1.14bn loans to high-growth potential firms across the 海角视频 with the option for the debt to be converted into equity for the Westminster Government.
According to new figures the fund, run through the 海角视频 Government鈥檚 economic development bank, the British Business Bank, has seen the number of firms converting debt to equity rising to 337, of which eight are based in Wales.
In total 1,190 firms received funding with 25 recipients in Wales, who drew down a combined lending value of 拢18.7m. Firms in London dominated the fund with more than 600 companies sharing around 64% of the total funding at 拢646.8m. When adding to the south-east of England the number of firms swelled to more than 700 and on value to just over 拢777m of the total.
Under the Future Fund firms needed to have raised 拢250,000 in a previous equity round. It provided funding up to 拢5m.
When debt is converted into equity the 海角视频 Government gets a stake at a 25% discount to the required match funding investors.
Welsh firms where the 海角视频 Government now has small equity interests in include Llangennech-based cleantech venture Hydro Industries.
Hydro secured 拢3.5m from the Future Fund with 拢4.6m from existing backers. With the Future Fund debt now converted into equity it gives the 海角视频 Government a 2.5% stake in a deal that values Hydro at north of 拢150m.
The match equity came from existing shareholders in the business that include co-founders of Admiral Henry Engelhardt and his wife Diane, and David Stevens and Heather Stevens.
The 海角视频 Government also has a small stake of less than 3% in Alternative Investment Market listed home-testing healthcare firm MyHealthChecked. Its ownership interest came as a result of MyHealthChecked鈥檚 acquisition of Nell Health last year for 拢1.5m with the vast majority satisfied through the issuing of new shares. Nell had been backed by the Future Fund and had seen its debt being converted into equity before it was acquired. As a result of its acquisition this has gave the Treasury a share interest in MyHealthChecked.
Other Welsh firms where debt has been turned to equity for the 海角视频 Government are tech firms LGN Innovations, based in Denbigh and Cardiff-based We Build Bots, Cardiff-based life sciences venture Momentum Bioscience and Powys-based hydrogen vehicle pioneer Riversimple.
In the latest published tranche of firms converting debt to equity are Cardiff-based fintech firm Delio, Swansea medical devices firm Calon Cardio Technology and Cardiff-based digital financial inclusion venture Pockit.
Ken Cooper, managing director, venture solutions, British Business Bank said: 鈥淭he Future Fund was created to increase the flow of capital to companies at the height of the pandemic, while ensuring long-term value for the 海角视频 taxpayer. We鈥檙e delighted to see this flow of companies going on to raise further private sector capital. As a shareholder in these businesses, the Future Fund is well positioned to share in the benefits of their continued growth.鈥
