There is a range of growth finance options in Wales.
As you move through the spectrum of funders, from high street banks to challenger banks, through to various debt and regional investment funds, including the Development Bank of Wales, there is a variety of funding options.
It's not just about access to local funders, as there are a significant number based outside of Wales which are accessible. Many of these funders are debt led but will consider transactions with an element of equity risk, so are worth exploring before seeking pure equity funding.
In terms of private equity, there are a number of local funders, with the Development Bank of Wales being a key player alongside the likes of LDC, BGF and Foresight, to highlight a few.
Despite many funding options there are still businesses that reach a certain size and want to sell. This happens across Wales and the UK and is driven by a variety of factors.
In some instances, it may be that the seller believes there are no further funding options to support growth. I’d argue that's not the case. There’s plenty of capital available, with market data showing that funders currently have a significant amount of “dry powder” ready to be deployed across Wales and the UK for well-prepared borrowers.
Gambit works with clients to really understand their strategies and ambitions. A key part of this is reviewing a business’ funding capacity, aligning it to their strategy and matching this with the most appropriate funder pool, whether this is debt or equity.
The funding landscape has changed materially over the last number of years and matching a client with the most appropriate funder pool is a critical part of a funding process. Gambit manages the complete funding process for clients. Some key parts of this include support with financial modelling, sensitivity analysis, preparing a relevant business plan plus managing discussions and interactions with funders.
We’re no longer in a world where borrowers are restricted to the high street banks for funding, or can rely solely on their bank manager for financial support. I think there needs to be a shift in mindset. Business owners shouldn’t be afraid to ask for help, whether from advisors, mentors, or people they trust. Reaching out for guidance early on in a process can significantly shape how you approach the funding challenge.
Technology and the internet have made it easier to access information, but for start-ups, especially those with limited bandwidth, knowing how to successfully use that information remains a challenge.
Often, business owners have to wear multiple hats, juggling various responsibilities. Finding time to network, access government support, and connect with advisors or fellow entrepreneurs is crucial.
It can be challenging, but there are individuals who are ready to mentor and share their expertise. For start-ups, the crucial part is carving out the time and space to take advantage of those opportunities.
