Smaller businesses in Wales supported by the British Business Bank are projected to generate £3 billion in additional turnover.
The bank's The Power of 10: 10 Year Impact Report also estimates that through their growth they will boost Welsh economic output by around £1 billion over the lifetime of their finance, contributing significantly to long-term economic value and innovation.
Since it was established in 2014, the British Business Bank has supported 10,000 smaller Welsh businesses, which are expected to create 6,000 additional jobs and sustain almost 109,000 existing positions, cementing its role as a critical driver of growth and employment in Wales since its inception.
The bank has extended access to finance beyond London, supporting regional growth.
The British Business Bank is mandated to operate across all nations and regions of the UK and 84% of businesses supported by the bank are located outside London. The bank’s initiatives have driven significant economic contributions in every UK nation and region, it says, with estimated GVA impacts at £1 billion or more in all nations and regions.
Programmes such as the Regional Angels Programme and the £130 million Investment Fund for Wales, which was launched in late 2023, have driven investment and supported high-growth businesses. As a result regional finance ecosystems have been strengthened, fostering growth and innovation in underserved areas, says the bank.
As the UK’s largest domestic investor in UK venture and venture growth capital, the bank supported 11% of all UK smaller business equity deals, with these deals accounting for 15% of total smaller business equity investment over the past decade.
Equity finance activity has grown significantly, with £8 billion deployed in the last three years alone. It says these figures will be significantly boosted by the Investment Fund for Wales, of which £50 million is allocated exclusively for equity investment, with £3.5 million already deployed in 2024. Deals include a £1 million investment into online cyber security software business SudoCyber and a £850,000 investment into drone development specialists, Drone Evolution.
This investment has catalysed growth in high-potential sectors such as life sciences, clean tech, and advanced software, driving innovation across the Welsh economy.
Additionally, the launch of British Patient Capital in 2018 and subsequent programmes, including the Life Sciences Investment Programme and Future Fund: Breakthrough, and have accelerated equity flows to transformative sectors, the bank says.
Over the past decade, the bank has leveraged more than £4 of private sector investment and lending guaranteed for every £1 of public funding deployed, which it says demonstrates its ability to act as a catalyst for private funding.
Its network of over 200 delivery partners, which includes banks, fintech providers, and venture capital funds, has been instrumental in addressing structural market gaps and enabling innovation across the UK.
At the International Investment Summit, it was confirmed that the British Business Bank will establish the British Growth Partnership, subject to regulatory approval, encouraging more UK pension fund and other institutional investment into the UK’s fastest growing, most innovative companies. The initial fund will seek to raise hundreds of millions of pounds, including a commitment from the British Business Bank, to invest in some of the highest potential opportunities in the bank’s venture capital pipeline.
Through its Start Up Loans programme, the bank has ensured that traditionally under-represented groups gain greater access to finance.
To date 5,015 Start Up Loans have been delivered in Wales since 2012, and 37% of these loans have been awarded to female founders in Wales, while 7% have supported entrepreneurs from Black, Asian, or Other Ethnic Minority backgrounds, more than the equivalent percentage of Wales’ minority population. This focus on inclusivity reflects the bank’s commitment to unlocking potential and diversifying access to finance and creating opportunities for underserved groups, it says.
Looking to the future, the bank is expanding access to funding for female entrepreneurs and will invest £50 million into female-led funds through its existing programmes.
This investment will support the aims of the Invest in Women Taskforce, which is an industry led, government backed initiative committed to increasing finance for female entrepreneurs.
In Wales the Bank has partnered with the Development Bank of Wales and Women Angels of Wales (WAW), the business angel investment syndicate for women. WAW was established to help support women in the early-stage investment community in Wales, and designed to address significant imbalances in the angel investment ecosystem, where women remain a substantial minority.
The bank says it has played a pivotal role in supporting the transition to net zero and the UK’s position as a leader in sustainable growth. Up to 37% of smaller businesses supported have utilised finance to reduce their environmental impact or develop green business models.
A significant focus on net-zero sectors, including clean tech, highlights the bank’s commitment to fostering environmentally sustainable practices and supporting the UK’s transition to a greener economy, it added.
Louis Taylor, CEO, British Business Bank, said:
“The Power of 10: 10 Year Impact Report highlights the transformative role the British Business bank has played in driving economic growth and shaping the financial landscape for smaller businesses across the UK.
“From improving access to finance across the UK’s nations and regions to backing innovation and championing sustainable growth, we are proud of the impact we’ve achieved over the past decade. Looking ahead, we remain committed to supporting smaller businesses, unlocking private sector investment, and helping the UK meet its economic goals.
“The catalytic impact of the British Business Bank and impressive track record crowding in private funding will become even more crucial as we establish the British Growth Partnership, subject to regulatory approval, unlocking the huge potential of UK pension funds and other institutional investors in venture capital funds and the UK’s innovative businesses.”
