Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Development Bank of Wales reports strong investment activity

equity funding



The bank made 519 investments with an average deal value of £210,276, into 460 Welsh businesses during the year ending March 31, 2022

The Development Bank of Wales has ramped up its investment activity to support firms across the economy with nearly £110m in its last financial year.

The bank, which provides debt and equity funding to SMEs and is wholly-owned by the Welsh Government, made 519 investments with an average deal value of £210,276, into 460 Welsh businesses during the year ending March 31, 2022.

Just over half of investments (51%) were awarded to existing customers. Total investment was £109.1m, an increase of £3.6m on the previous year. Equity investments made up 10.6% of the total (£11.58m).

Co-investment in 2021-22 reached £64.1m, an increase of £4.1m on 2020-21 as the Development Bank continues to focus on working with the private sector to maximise the flow of private capital in Wales. £30.3m of the co-investment was for tech ventures.

The investor base held by Angels Invest Wales (AIW) grew to 299 and there were 92 individual angel investments during the year totalling £3.3m compared to £2.6m in 2020-21. Through co-investment, AIW had a total cumulative impact of £8.6mm – including £1.65m in match-funding by lead Angel investor syndicates. 10% of investors registered with AIW are women.

With a customer portfolio of almost 3,000 Welsh businesses, the Development Bank now manages funds totalling £1.9bn including the £32.5m for micro loan funding.

Micro loans of up to £50,000 across all funds accounted for 70% of total investments made by the Development Bank during the year, of which almost half were fast track loans with a lending decision targeted within 48 hours. 140 fast track loans totalling £2.39m were awarded in 2021-22 compared to 93 in 2020-21. Start-up investment also increased from £7.5m to £8.8m with 135 investments in 2021-22 compared to 122 in the previous year.

The development bank saw particular growth in north Wales with businesses in the region receiving £30.1m from the overall value of deals compared to £25m in the previous year. South east Wales had £47m and mid and west Wales reported £32.1m. There were 3,540 jobs created or safeguarded during the year across Wales.

Chief executive of the Development Bank, Giles Thorley, said: As a patient investor, our focus is on helping businesses to start-up and grow. This long-term approach is particularly important in the tech sector where we provide follow-on funding for those companies that have benefited from seed and early stage equity finance.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.



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