The State of Equity Investment in Wales 2023
Sam Peckett, 03 August 2023
We analysed 443 companies that have incorporated since 2019 and have founder education data available.
Equity investment plays a pivotal role in the development of companies by funding innovation, increasing business growth pace, and supporting succession planning. Between 2013 and 2022, there have been 1,357 equity deals into Welsh businesses, with over £100m invested in each of the last three years.
Equity raised in Wales dropped slightly in 2022 compared to 2020 and 2021. This is largely in line with the rest of the UK, as rising interest rates, the risk of a recession and the aftermath of a frenzy of capital deployment in 2021 saw investment slow.
Equity investment is an important growth enabler in the region, supporting half of the companies in Wales that have achieved over 100% annual growth in turnover over the last three years.
Equity investment into Welsh businesses (2013-2022)
Sectors for Investment
Software-as-a-service (SaaS) is the top sector in the Welsh high-growth ecosystem by the number of equity fundraising deals over the last decade, with 260 deals since 2013.
Three other sectors saw at least 100 equity fundraising deals since 2013, with a further 12 securing at least 30 deals. Find out more about the top sectors in our full report.
Welsh businesses account for 2.84% of all UK exit transactions. There have been 152 exits for Welsh companies since 2013, with building materials supplier Brickability having the top exit via IPO at a valuation of £150m. SPTS Technologies exited for £216m via acquisition, the most of any company in Wales in the last decade.
The businesses in scope in this report are high-growth, private companies headquartered in Wales that have raised equity between 2013 and 2022. To be included in the analysis, any investment must be:
Beauhurst identifies companies as high-growth if it hits one of our eight tracking triggers, which includes accelerator attendances, academic spinouts, high-growth lists and more. To find out how Beauhurst’s searchable database of private UK companies can help your business, book a free demonstration.
The high-growth ecosystem in Wales is strong, with many successful startups. The data suggests that there’s untapped potential in Wales, with the Development Bank of Wales and other investors playing crucial roles in kick-starting growth journeys by helping companies to secure funding and bring innovative technology and practices to the market. Take a look at the full report to read up on extra details, such as succession transactions, case studies and the breakdown of spinouts.
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