Raising investment for a technology start-up is exciting but it’s rarely straightforward. Having the right funding in place is only one part of the picture. The journey to becoming investment-ready, building the right syndicate, and managing the challenges that follow all take time, experience and support.
At the Development Bank of Wales, our technology ventures team focuses exclusively on early-stage technology businesses that are based in, or willing to relocate to, Wales. In fact, we’ve made almost 300 equity investments in tech ventures totalling over £89 million since 2017. But the investment itself is just one part of what we do.
Before a company reaches that point, our team spends a lot of time helping founders and management teams prepare for investment. That means working with them to develop their business plans, helping them understand what investors are looking for, and identifying potential co-investors to build the syndicate they need. Events like Wales Tech Week play an important role in that process. They help to plant new ideas, connect people, and nurture the early stages of growth.
Our focus is on equity investment, because most of the businesses we back are early-stage and often pre-revenue. They don’t yet have the cashflow to service loans or pay interest, so debt isn’t the right instrument for them. Flexibility is key: sometimes we lead an investment round and coordinate the syndicate, while at other times we act as a co-investor, supporting another lead investor.
What matters most to founders is that we can help complete a funding round. Whether a company is raising £500,000 or £5 million, pulling that together can be difficult. We can step in to fill gaps in a round – at the beginning, as a key investor that gives confidence to others, or towards the end, to help close the deal.
What makes our approach different is the consistency of support over time. A technology business doesn’t develop in a single year; it takes many years to move from an idea through multiple funding rounds and stages of growth. Our ability to provide long-term backing is a real strength. Venture capital markets naturally ebb and flow, and private funders often need to adapt to wider economic pressures or shifts in sentiment. We’re not subject to the same cycles. Our funds and strategy are designed for the long term, giving founders and co-investors confidence that there will be continuity of support as their business grows.
We also recognise that technology trends come and go. Six months ago, AI was attracting a great deal of attention – and we do invest in AI – but we also back a much wider range of innovation. The point is that we stay focused on the long-term potential of Welsh businesses rather than short-term fashions.
That stability is strengthened by the wider ecosystem in Wales. From Anglesey to Swansea, there are incubators and facilities where founders can share experiences and access practical support. Our universities are producing high-quality graduates in all sorts of disciplines, giving companies a strong base for recruitment and training. And there is a well-established network of lawyers, accountants and advisers who understand what it takes to build and grow a start-up.
But perhaps the most distinctive aspect of the Welsh technology scene is its sense of community. Your reputation matters here. In larger markets such as London or Silicon Valley, there is always another deal; in Wales, relationships and trust endure. That closeness creates a supportive environment for founders who are navigating the challenges of early-stage growth.
To build on that, we’ve recently launched a new Founders Playbook, now available on our website. It was developed in collaboration with founders, investors and other stakeholders across the sector. It offers practical, real-world guidance for anyone navigating the fundraising journey, from preparing for investment to managing growth after a funding round. It also looks at how founders can look after their own wellbeing throughout what can be an intense and demanding process.
Fundraising is a critical step in the life of any technology business, but it’s not the end goal. What really matters is building something sustainable – a company that creates value, supports jobs, and contributes to Wales’ growing reputation as a place where technology and innovation thrive.
That’s what our work at the Development Bank is ultimately about: consistent, long-term support that helps good ideas take root and grow into successful, scalable businesses.
Find out more about the Development Bank of Wales’ support for tech ventures here: https://developmentbank.wales/business-need/finance-tech-ventures
Duncan Gray talks about this and more in the Meet The Funder – The Development Bank Podcast. Listen to the podcast here.
