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There’s more to co-investment than extra money

Our Technology Ventures Investments Team (TVI) actively co-invests with other funders. It’s not just because this route offers additional capital, it also offers better growth opportunities for the early stage companies we work with.

Our TVI team is celebrating 10 years of successful, equity based co-investment. Established in 2006, we have already invested £55m in 62 fast-growth, technology-based businesses across Wales. We have leveraged an additional £119m from a wide range of supportive co-investors including, angel investors, the British Business Bank, corporate investors, sector specific funds, US based venture capitalists and Alternative Investment Market (AIM) listings.

Co-investors offer more than just capital. Many of our investment partners strengthen the executive teams and boards of our portfolio companies. They provide high level market and sector intelligence, access to distributers and international customers and significant follow on investment. Crucially, they all share our commercial vision and aspirations for the success of our investee companies and are prepared to join us in the investment journey from start-up to eventual exit.

We championed the benefits of co-investment very early on, signing a co-investment memorandum with Fusion IP - who had secured the exclusive investment rights to all spinouts from Cardiff University. Now part of the IP Group, Fusion IP has provided the TVI team with high calibre investment propositions; all developed from pioneering local research. The TVI team has invested in 10 technology starts-ups in partnership with Fusion and the IP Group. Two of which, Diurnal and Medaphor have successfully listed on AIM in the last year.

Other co-investor relationships have been more informal but of equally strategic importance to TVI and our investee companies. These have included deals with corporate investors in Series A level investment rounds. At a lower funding level, angel investment continues to be a crucial source of co-investment to our very early stage businesses. 

Through our xénos business angel network and the recently launched Technology Seed Investment Fund, Finance Wales is committed to supporting the burgeoning tech start-up community in Wales. The Technology Seed Fund has already invested in 17 companies, all with angel investment support. For more established technology businesses we work with a wide selection of institutional co-investors; including the IP Group, Octopus Ventures, Notion Capital, Mercia Technologies, Vanguard Atlantic, Acceleris Capital, and Longwall Ventures.

As we embark on our next five year investment programme, a changing state aid landscape will require even greater levels of deal-by-deal co-investment. Some might see this as a challenge; we regard it as an opportunity to bring even greater value to our investee companies.

If you’re a tech-focused start-up or early growth company based in, or excited to advance your business in, Wales we may be able to help you. Get in touch with our team by emailing info@financewales.co.uk.