The Welsh Government

The Welsh Government operates as a significant investor in the Welsh economy, primarily through its wholly-owned subsidiary, the Development Bank of Wales (DBW). Unlike a traditional venture capital firm, DBW is a development bank with a strategic mandate to address market gaps in finance and foster economic growth across Wales. It provides a wide spectrum of financial solutions, including equity, debt, and mezzanine finance, catering to businesses at various stages, from nascent startups to established high-growth companies. This approach underscores the government's commitment to supporting indigenous businesses and attracting investment into the region.

DBW manages several dedicated funds designed to meet specific business needs. For early-stage ventures, the Seed Fund offers equity investments typically ranging from £50,000 to £250,000. As businesses mature and seek further expansion, the Early Stage & Growth Fund provides equity capital up to £2 million. For larger, more complex funding requirements, the Wales Flexible Investment Fund can deploy up to £5 million, often combining equity and debt. In the fiscal year 2022-23, the Development Bank of Wales invested a substantial £131 million into 546 businesses, demonstrating its active role in the Welsh business landscape.

Beyond direct investment, the Welsh Government, through DBW, plays a crucial role in co-investing alongside private sector partners, including angel investors and other venture capital firms. This collaborative model helps to de-risk investments for private capital and amplify the overall funding available to Welsh enterprises. The bank's activities are not solely focused on financial returns but also on broader economic and social impacts, such as job creation and fostering innovation. By providing patient capital and strategic support, the Welsh Government aims to build a more resilient and dynamic economy for the nation.