High growth start-ups and scale-ups are attracting record levels of investment in Wales, according to a landmark new report released by Beauhurst, the research platform, and sponsored by the Development Bank of Wales, an active investor in the UK.
Investment into Welsh businesses has been steadily increasing in recent years. Welsh start-ups and scale-ups secured £129 million in 2020, which was a record for the country. Beyond high growth companies, a record number of businesses were incorporated in Wales that year – 19,453.
The resilience of Welsh businesses during the pandemic was strengthened by the COVID-19 Wales Business Loan Scheme, which saw the Development Bank of Wales delivering £92 million in additional loans to Welsh companies.
The research suggests that Wales is becoming a springboard for a new generation of high growth companies. While data suggests that the UK is experiencing a steady decline in early-stage funding for start-ups, the average deal size for Welsh companies in 2020 was £939,000. Since 2011, a third (466) of deals have been secured by Welsh companies raising investment for the first time.
The comprehensive study of Welsh investment activity between 2011 and 2020 identified 1,215 high growth companies in Wales, which have raised £882 million across 1,201 deals over the last 10 years.
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