Cardiff, the capital of Wales, is known for much more than Cardiff Castle and the Millennium Stadium. Its entrepreneurial landscape is developing quickly, producing some exciting startups over the last few years.
So what makes the city so appealing to startup founders? The cost of living is more affordable for both entrepreneurs and employees, with office spaces being significantly cheaper than elsewhere. Yet, the city is still well-connected and just a two hour train ride to London.
Its mix of history and new contemporary style has made it a standout option for new ventures, so let’s take a look at what you would need to consider before launching a startup there.
How Startup-Friendly Is Cardiff?
According to the Government of Wales, Cardiff has about 40,000 active enterprises and ranks 17th as the best startup ecosystem in the United Kingdom.
The Welsh government is active in supporting entrepreneurs, whether it be through grants or the opportunity to network with others in similar industries.
Cardiff’s business community is known to be a close-knit one, and a safe space where startups can collaborate with established companies or academic institutions and maximise resources to truly reach their full potential.
The Most Successful Industries In Cardiff
The success of your startup will depend on a lot of different factors, but naturally one of the main things to consider is which industry you want to be in. If you have considered opening a business in Cardiff, these are a few sectors who have seen immense success:
Creative industries: Dubbed as the “Media Capital of Wales”, media and creative companies have a strong presence there including household names such as the BBC and ITV.
Tech and fintech: Cardiff is home to some of the most revolutionary startups in fintech and software development, so it’s no surprise that entrepreneurs are flocking there to follow suit.
Tourism and hospitality: The city is home to all sorts of attractions from the Museum of Cardiff to Llandaff Cathedral and Cardiff Bay, drawing in thousands of tourists every year. This has created ample opportunities in the hospitality industry to accommodate these tourists.
Healthcare: Wales is at the forefront of innovations in the health space, making Cardiff the ideal location for those looking to innovate in biotech and medtech.
Accelerators and Incubators In Cardiff
Cardiff is home to several accelerators and incubators who have the knowledge and financial resources to support ventures in their early-stages.
Cardiff Start: This initiative is driven by the community and are able to connect entrepreneurs with resources to get them up and running.
Alacrity Foundation: This organisation is specifically aimed at tech startups, offering a year long program where graduates are given training, skills and funding for their ventures.
Tramshed Tech: Also for tech startups, Tramshed Tech offers co-working spaces and events for those in the tech industry.
Fintech Wales Foundry: This program is designed to help fintech startups with growing their businesses.
Wales Innovation Centre for Enterprise (ICE): Founded to nurture entrepreneurial growth, this organisation gives entrepreneurs access to flexible office spaces, guidance and various workshops.
Funding Opportunities
When it comes to securing the financial resources for your startup, Cardiff offers several different avenues.
Angel networks: There are companies such as Angels Invest Wales who have the resources available to connect entrepreneurs with angel investors who can invest in their ventures.
Venture capital: Numerous Cardiff-based VCs are available to provide funding to early-stage startups.
Grant funding: The Welsh government, along with other organisations, can offer grants to entrepreneurs towards research and development.
Development Bank of Wales: The Bank can provide loans, equity investments and support to businesses in different stages, not necessarily just startups.
Some Factors To Keep In Mind Before Starting Your Business
While Cardiff offers numerous advantages to launching a startup, there are also a few challenges that should be taken into consideration before setting up shop.
The city certainly is growing, however it doesn’t quite have the scaling capabilities that larger cities like London do which is something to keep in mind for startups.
There are plenty of funding opportunities available, but there is fierce competition for securing these grants and investments so your proposed venture should be innovative enough to attract the attention of potential investors.
The Process Of Setting Up A Business In Cardiff
The procedure for starting a business in Cardiff is a fairly straightforward one. Firstly, you will need to decide on your business structure, whether it’s going to be a sole proprietorship, partnership or a limited company.
The next step is to register your company with Companies House, which can be done online for a small fee but is very convenient.
After this, you can secure your business address, this can be a physical or virtual address but you will need one.
Depending on which industry you plan to operate in, you may need specific permits or licenses.
The last step is to open a business bank account to manage your finances, and register for VAT if your annual turnover exceeds the threshold amount.
Should You Launch A Startup In Cardiff?
Cardiff is, without a doubt, a dynamic and supportive environment for startups. Its affordability compared to other cities is a big drawcard, and we can expect to see major growth in the startup scene in coming years.
The key to making your decision will be making sure that you have done enough research to see if the city can support your own ideas, and to go from there.
Best of luck!