As part of an interview series Matt Hyde, Director of Recruit121 and FinTech Awards Wales, talks to a whole host of professionals in and around Wales’ thriving fintech Sector.
This week Matt caught up with Duncan Grey, Technology Venture Investments Director at Development Bank of Wales.
1. Can you provide us an overview of your team as part of the Development Bank of Wales and its primary mission in supporting businesses across the region?
The Development Bank has a wide range of funding packages to help technology-rich companies with strong intellectual property to start-up and scale-up in Wales.
Our team of 14 dedicated investment executives has played a pivotal role in this mission by investing nearly £50 million in Welsh tech companies over the past five years. Around a quarter of that was from our Wales Technology Seed Fund, which is financed entirely by the Welsh Government.
We invest from pre-seed through to Series A, supporting proof of concept through to scale-up. We typically invest between £100,000 and £350,000 but can go up to £5 million for more mature businesses. Businesses are usually required to match our investment with other funds.
However, our commitment goes far beyond just providing financial resources. We strive to foster businesses that act as catalysts for growth, innovation, and community impact across Wales and their respective sectors.
Since our inception in 2017, we have successfully invested more than £105 million into more than 200 Welsh businesses. Additionally, we have leveraged a further £260 million through co-investment, underscoring our ability to attract and align with strategic partners. This dual focus on direct investment and co-investment highlights our dedication to building a vibrant, resilient, and innovative economy in Wales.
2. How has the role of the Development Bank of Wales evolved in recent years, particularly with the growth of the fintech sector?
The role of the Development Bank of Wales has evolved significantly in recent years, especially with the rapid growth of the fintech sector. Within the Technology Ventures Investment team, we’ve adapted to meet the increasing specialisation in the tech and fintech industries, driven by advancements in blockchain, AI, and other transformative technologies. To effectively support this dynamic sector, we’ve drawn on the diverse expertise of our team, which includes a range of specialisations and backgrounds.
Our evolution has also been bolstered by strong collaboration with key stakeholders in the fintech ecosystem. For example, our partnership with FinTech Wales has been instrumental in fostering innovation and growth within the sector. We actively support initiatives like the Wales Fintech Awards, Wales Tech Week and MediWales which celebrate the remarkable achievements of Welsh fintech businesses. We also engage with hubs such as Tramshed Tech, a vital space for fintech entrepreneurs and startups to collaborate and thrive.
These partnerships, combined with our funding expertise, have enabled us to not only respond to the demands of a rapidly growing sector but also to help position Wales as a significant player in the global fintech landscape. By aligning our efforts with the sector’s needs, we are ensuring that Welsh fintech businesses are well-equipped to seize emerging opportunities and drive economic growth.
3. What are some of the key successes or milestones that the Development Bank of Wales has achieved in supporting Welsh businesses?
There’s a number of success stories in the Welsh fintech sphere that we’ve supported in the past few years.
Most recently we provided further backing to a Welsh technology business, Driverly, which provides adaptable app solutions to major car insurance companies. What’s interesting is Driverly started life as a technology platform making it easier for young drivers to access car insurance, using data gathered on individual drivers to help bring down their insurance contributions. To take advantage of market developments the business has moved to a B2B model and provides its customisable platform to a host of insurers. With the six-figure round of funding, supported by the Development Bank, Angels Invest Wales and high-profile Welsh investors, it has given Driverly the opportunity to grow its customer base.
Another recent investment was £350,000 in equity funding for Amped PCR, a start-up based in mid-Wales. Amped PCR is developing PurifAI, an innovative DNA testing system, designed to revolutionise how industries detect harmful pathogens and will be as easy to use as a smartphone. It's an exciting venture and we look forward to seeing how far this Welsh business can go.
Last financial year we supported Awen Oncology. They are developing a breakthrough range of anti-cancer drugs that target a variety of cancer types. They are based at M-SParc and are a university spin-out. They had a six-figure equity investment from the Wales Flexible Investment Fund and a further six-figure investment from Start Codon, a specialist life science venture builder. Awen Oncology also has financial backing from Cancer Research UK, Innovate UK and the Welsh Government SMART capital programme.
4. How important is fintech to the broader Welsh economy, and what role does the Development Bank of Wales play in fostering this industry?
Fintech plays a crucial role in the Welsh economy, serving not only as a key pillar of the broader tech sector but also as a hub of innovation.
The industry is transforming traditional processes by introducing new methods that enable consumers and businesses to automate tasks that were once complex and time-consuming. This innovation is driving efficiency and creating marketable services that meet real-world needs, resulting in highly compelling business propositions.
The Development Bank of Wales plays a pivotal role in fostering this industry. As an early investor in many seed and start-up stage fintech businesses, we provide the critical funding needed to help innovative ideas take shape. Beyond the initial capital, our investments often serve as a signal of confidence, helping businesses attract co-investors and additional leverage. This dual role – providing direct financial support and acting as a catalyst for further investment – enables us to support the growth and development of fintech companies that are driving change and contributing significantly to the Welsh economy.
Importantly, we work as minority investors, holding less than 50% of a company’s equity but get actively involved to support growth. We can also bring in co-investment from syndicates and business angels, attracting match funding through our Wales Angel Co-investment Fund.
5. What unique advantages does Wales offer for fintech companies looking to scale, and how does the Development Bank of Wales leverage these in its support efforts?
Wales offers a range of unique advantages for fintech companies looking to scale, making it an increasingly attractive destination for businesses in this sector. We boast a well-established fintech ecosystem that consistently outperforms expectations, supported by key hubs in cities like Newport and Cardiff. These hubs provide thriving support networks, access to talent, and opportunities for collaboration with other innovative businesses and partner organisations.
The Development Bank is an integral part of ecosystem, supporting fintech businesses by providing not just funding but also access to valuable networks, expertise, and strategic partnerships. Our close collaboration with organisations like FinTech Wales, local incubators, and accelerators ensures that companies benefit from a comprehensive support structure, enabling them to scale efficiently and sustainably.
By aligning our resources with the unique strengths of the Welsh fintech ecosystem, we play a vital role in helping businesses tap into these advantages and realise their growth potential.
6. How does the Development Bank of Wales identify promising fintech start-ups and help them access the resources they need to grow?
We are a forward-thinking investor, so we focus on identifying fintech start-ups that not only have well-thought-out business plans and compelling propositions but also demonstrate the potential for long-term impact. Our approach goes beyond just assessing initial proposals; we aim to invest in businesses that will create growth within the Welsh economy. We finance responsible businesses – those with strong social, ethical and environmental standards, as well as real commercial promise.
At the heart of our evaluation process is a deep focus on the people behind the business. Fundamentally, when investing in start-ups, you’re investing in the team. We look for knowledgeable, enthusiastic, and passionate founders who are deeply committed to their vision and capable of executing it effectively. A strong team is often the best indicator of a start-up’s potential for success.
Once we identify promising fintech businesses, we ensure they have access to the resources they need to thrive. This includes providing tailored funding options, offering mentorship and strategic guidance, and connecting them to our extensive network of co-investors, industry partners, and support organisations. By leveraging our position within the Welsh fintech ecosystem, we help these start-ups navigate the challenges of scaling and unlock their full potential.
7. What are your long-term goals for the Development Bank of Wales in relation to the fintech sector?
Technology drives economic growth and employment in Wales.
Universities, business support partners, and funders collaborate to foster innovation and growth while a high quality of life attracts talented professionals to the region.
As Wales' largest venture capital investor, we're committed to building successful Welsh tech companies. We're here to do impactful deals that benefit both the businesses we invest in and the wider Welsh economy.
8.Finally – what's your favourite book and why?
“The Moor’s Last Sigh” by Salman Rushdie. The story is set in India, which is a country that I visited more than 30 years ago and loved (I really should try to visit again) but the story and the way that the author uses language makes you think about things differently. A different perspective and a different, challenging view is always interesting.
