10 Welsh VCs Investing In Early Stage Startups

Wales, particularly the capital of Cardiff, has quickly gained recognition as a leading hub for startups. Its rich historical heritage and beautiful landscapes are certainly a drawcard, but the country offers much more than that. The government supports new businesses through tax breaks and competitive grants.

It’s no surprise then that plenty of startups have started their ventures in Wales. According to Business Live, a total of 2,504 firms were registered in April 2024 alone. 2023 was a notably successful year for startups, with more than 20,500 companies opening.

 

Which Sectors Are Growing In Wales?

 

Cardiff is emerging as a tech hub, specifically in software development and cybersecurity. Wales has plenty of natural resources to take advantage of, from wind to tidal energy which has seen a growth in the sustainability sector. The country’s strong cultural roots support the creative industry including digital media, television and music.

 

 

10 Welsh VCs Investing In Early Stage Startups

 

For entrepreneurs wanting to start a business, funding can be a concern. In Wales, there are a range of venture capital firms to approach for financing opportunities. Let’s take a look at a few of them.

 

1. Gambit Corporate Finance

 

 

Founded in 1992, Gambit is one of the most established corporate finance advisory firms in the country. They provide a full evaluation of financing options, and assist with the proposition preparation and presentation. Additionally, the firm provides ongoing strategic advice and works across multiple sectors from finance and IT to cleantech and healthcare.

 

2. Mayfair Ventures

 

 

Mayfair Ventures, a Cardiff-based firm, aims to create an ecosystem that supports and grows startups. They focus on those in the deeptech, AI and impact industries. Aside from financial backing, they offer mentorship, training and development opportunities for entrepreneurs to acquire the tools and knowledge they need to make meaningful contributions to the global economy.

 

3. IQEQ

 

 

For more than twenty years, IQEQ has used leading technology and an integrated approach to provide venture capital investments. Located in 25 countries around the world, the firm has $750 billion dollar assets under administration and more than 800 funds under administration.

 

4. WestBridge Capital

 

 

WestBridge Capital invests in B2B companies that operate in growing niches, with up to £200 million capital to invest. The firm actively incorporates environmental, social and governance (ESG) values into all of their portfolios. Their goal is to identify ESG opportunities and risks to manage them, and create sustainable growth as a result.

 

5. Innovation Investment Capital

 

 

Innovation Investment Capital is a £50 million fund that offers funding between £2 and £7 million to support technology-focused companies found in the Cardiff Capital Region. The fund is made up of Cardiff Capital Region, PwC and Capricorn Fund Managers as partners to generate growth in one of the local authority areas within the CCR.

 

6. Waterspring Ventures

 

Waterspring invests in early-stage UK companies who have the ability to produce high productivity and highly skilled jobs within the local community. The firm has achieved exists in excess of £400 million and has advised more than £150 million worth of transactions annually.

 

7. Foresight

 

 

For more than forty years, Foresight has supported SMEs across Wales with investments of up to £5 million. Offering more than just funding, the firm provides insights and guidance for startups in their infancy to achieve their vision and contribute to the economy.

 

8. Balderton Capital

 

 

Balderton Capital is one of Europe’s leading technology venture capital firms. Recently, the firm announced that they have raised $1.3 billion in funding for top entrepreneurs around Europe. To further support entrepreneurs in their startup journeys, the firm offers a six month Wellbeing and Performance Programme. This includes health and nutrition guidance and peer-to-peer support.

 

9. DSW Ventures

 

 

DSW Ventures is a regional-focused venture capital firm, focusing on startups in Wales. The firm manages one of the biggest angel networks in the UK and make investments that are compliant with both the SEIS and EIS regulations. They provide funds of up to £2 million to startups in their early stage.

 

10. FW Capital

 

 

FW Capital offers an Investment Fund for Wales (IFW) which is a £30 million investment fund to grow small businesses. They provide funding from £25 000 up to £2 million. This isn’t just available to Welsh startups, but also extended to businesses who are willing to relocate to Wales or have a material presence in the country.