As 2025 draws to a close, this is an opportune moment to reflect on the defining themes of the year and consider the opportunities and challenges that lie ahead in 2026.
2025 has been a pivotal year for the Development Bank of Wales.
We closed the 2024/25 year with £152 million invested, supporting 502 businesses and helping to create and safeguard 6,185 jobs across Wales. Notably, 82% of these were classed as micro businesses.
November then saw us mark our £1 billion investment milestone into equity, debt and property loans since 2017. That investment protected or created more than 50,000 jobs, while generating £5.8 billion in jobs-based GVA and attracting £636 million in private sector co-financing.
That £1 billion investment landmark is important but what really matters is the wealth and variety of success stories behind the headlines.
For example, this year has seen us make our single largest ever investment, with £17.5 million for a major property development at Parc Eirin, Tonyrefail. It also marked the launch of the Wales Residential Property Fund, which backs developers with loans from £150,000 to £10 million. This is an important enabler of the Welsh Government’s commitment to increasing the supply of affordable and good quality housing throughout Wales.
And we launched the £40 million Wales Business Succession Fund, which is supporting management buy-outs and buy-ins, helping leadership teams to take on new challenges while keeping businesses, jobs and innovation in Wales.
That includes the support we provided to Dragon Recycling Solutions, a Tredegar-based smart meter manufacturer, during an MBO. We provided a £5 million package for the business, including £2.25 million in equity from the new succession fund, and £2.75 million in debt from the Wales Flexible Investment Fund. Our investment – the third time the Development Bank has supported Dragon since 2016 – safeguarded 120 jobs.
The Welsh Government also confirmed an increase of £10 million to help accelerate the decarbonisation efforts of Welsh businesses via the Green Business Loan Scheme.
First launched in March 2023, the Scheme has now been extended to £20 million with funding available until 2028. It means that even more firms can access the support they need to reduce their carbon footprint while strengthening their competitiveness.
Mold-based Thorncliffe Building Supplies is a great example of how the scheme is helping businesses across Wales to ‘invest to save’ by providing loans with discounted interest rates to make energy efficiency improvements and implement decarbonisation initiatives. The company is using a loan of £3.2 million to invest in a new wash plant and water treatment system that will reduce their use of landfill.
Our range of funding options means that we’re able to support businesses across Wales in every sector, and at every stage of their growth.
From small businesses like Mumbles-based pottery party venue Craftsea, which we supported with a £50,000 micro loan to scale up to larger premises, to fast growth medtech ventures, we’re committed to making sure that businesses can access the capital they need to survive, adapt and thrive – whether in times of uncertainty or opportunity.
This year also saw Deeside-based pharmaceutical manufactures Reacta Healthcare – whom we have supported with £2.8 million in equity since our initial investment in 2019 – unveil two new Oral Food Challenge (OFC) products and unveil plans to accelerate its outreach into global markets. Both new products support its mission of making food allergy diagnosis more accurate, efficient and safe.
Beyond individual deals, 2025 has been a year of collaboration. None of this happens in isolation. Every investment is part of a wider ecosystem – entrepreneurs, leadership teams, co-investors, and government working together to create the conditions for Welsh businesses to thrive. Indeed, the £636 million in private sector co-financing we’ve attracted since 2017 is more than a figure; it’s a vote of confidence in Wales as a place to invest and grow.
That confidence matters. When we speak to founders and business owners, the message is clear: access to finance unlocks ambition. It turns ideas into jobs, and plans into progress. Whether it’s a start-up taking its first steps or a management team navigating a succession deal, the right support at the right time can make all the difference – not just for the business, but for the communities and supply chains that depend on it.
Looking ahead, our ambitions are as bold as the businesses we back. 2026 will see us continue to focus on sustainability and green finance, helping companies lead the transition to a low-carbon economy. We’ll keep driving innovation in technology and digital sectors, and we’ll work to ensure inclusive growth, so that opportunities reach every region and every community in Wales.
The £1 billion milestone is a marker of progress, but it’s not the destination. It’s a platform for the next chapter: one defined by partnership, innovation, and shared ambition. Together, we can build an economy that is stronger, greener, and ready for the future.
We want to reach out to more businesses who would benefit from our targeted investment, while continuing to build on the links we’ve already established with hundreds of entrepreneurs, sole traders, small business owners, major companies and property developers.
Our focus remains clear: to work alongside Welsh businesses to unlock potential, drive innovation, and create sustainable growth for generations to come.
