£115 million of start-up investments ploughed into Welsh tech firms

Early-stage Welsh technology companies have raised almost £115 million in venture capital investment over the past six years, reports the BBC.

According to research from analytics company Pitchbook, the Welsh technology scene has been booming in recent years, and 2017 was a record year for British tech investment.

Wales is one of the devolved nations to have benefited from this. Since 2012, 92 Welsh technology companies have attracted £114.2 million of investment.

These statistics, which were compiled by Pitchbook on behalf of London & Partners, show that the total of venture capital deals made across Wales has varied year-by-year. There were 21 in 2016 and 16 in 2017.

Companies in areas such as AI, digital and software are attracting the most interest from investors. Doug Trafelet, managing director of Pitchbook, said technology in Wales is advancing.

“I think that, on a global basis, deal sizes are going up. We have more capital in the eco system and we have more firms that are chasing after the same number of deals,” he said.

“As a result, some of those technologies or venture capital companies are worth more in the eyes of investors, or investors are forced to pay more to compete.”

He added: “Whereas a few years ago there was a trend to splash a lot of money on start-ups, a lot of capital has dried up and it’s been directed to companies at later rounds,” he said.

Steve Smith, technology ventures investment director at the Development Bank of Wales, said the Welsh technology industry is being supported by “universities with world class facilities” as well as a “number of successful regional incubators and accelerators”.

He said: “As the technology eco system in Wales has developed, larger institutional co-investors are being attracted by the opportunities here.”

“These investors often have a focus on ‘later stage, de-risked propositions’ that require more substantial investment.

“This is great news for Wales, but we must be able to support tech companies at all stages from initial start-up, through product development, early commercialisation, growth and eventual exit.”

Source: BBC 

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