There’s more to co-investment than extra money
Our Technology Ventures Investments Team (TVI) actively
co-invests with other funders. It’s not just because this route
offers additional capital, it also offers better growth
opportunities for the early stage companies we work with.
Our TVI team is celebrating 10 years of successful, equity based
co-investment. Established in 2006, we have already invested £55m
in 62 fast-growth, technology-based businesses across Wales. We
have leveraged an additional £119m from a wide range of supportive
co-investors including, angel investors, the British Business Bank,
corporate investors, sector specific funds, US based venture
capitalists and Alternative Investment Market (AIM) listings.
Co-investors offer more than just capital. Many of our
investment partners strengthen the executive teams and boards of
our portfolio companies. They provide high level market and sector
intelligence, access to distributers and international customers
and significant follow on investment. Crucially, they all share our
commercial vision and aspirations for the success of our investee
companies and are prepared to join us in the investment journey
from start-up to eventual exit.
We championed the benefits of co-investment very early on,
signing a co-investment memorandum with Fusion IP - who had secured
the exclusive investment rights to all spinouts from Cardiff
University. Now part of the IP Group, Fusion IP has provided the
TVI team with high calibre investment propositions; all developed
from pioneering local research. The TVI team has invested in 10
technology starts-ups in partnership with Fusion and the IP Group.
Two of which, Diurnal and Medaphor have successfully listed on AIM
in the last year.
Other co-investor relationships have been more informal but of
equally strategic importance to TVI and our investee companies.
These have included deals with corporate investors in Series A
level investment rounds. At a lower funding level, angel investment
continues to be a crucial source of co-investment to our very early
Through our xénos business angel network and the recently
launched Technology Seed Investment Fund, Finance Wales is
committed to supporting the burgeoning tech start-up community in
Wales. The Technology Seed Fund has already invested in 17
companies, all with angel investment support. For more established
technology businesses we work with a wide selection of
institutional co-investors; including the IP Group, Octopus
Ventures, Notion Capital, Mercia Technologies, Vanguard Atlantic,
Acceleris Capital, and Longwall Ventures.
As we embark on our next five year investment programme, a
changing state aid landscape will require even greater levels of
deal-by-deal co-investment. Some might see this as a challenge; we
regard it as an opportunity to bring even greater value to our
If you’re a tech-focused start-up or early growth
company based in, or excited to advance your business in, Wales we
may be able to help you. Get in touch with our team by