Wales Business Fund

Project description

The ERDF and Welsh Government backed Wales Business Fund builds on the success of the fully invested Wales JEREMIE Fund and can invest in SMEs which are based in Wales or willing to relocate.

Running for seven years, the Wales Business Fund can provide investment packages from £50,000 up to £2 million to SMEs in a wide range of sectors. This complements our full product offering by providing more flexible investments for SMEs across all of Wales.

Delivery model

Investment packages include loans, mezzanine, Early Stage Risk Capital and Later Stage Risk Capital. Each investment aims to secure additional funding into SMEs through co-investment with banks, angel networks and other funding bodies.

Although designed as a pan-Wales Fund, it has a greater regional focus on West Wales and the Valleys as a ‘less developed area’. Investments are made by our in-house Fund Manager.

Geographical coverage

The project will benefit all local authority areas of Wales.

Essential eligibility criteria

Funding is only available to SMEs, employing up to 250 employees with an annual turnover not exceeding €50 million. Businesses must be located in, or be willing to relocate to, Wales.

The Fund cannot invest in the following:

• Coal and steel
• Shipbuilding
• Production of weapons and ammunition
• Gambling
• Tobacco
• Activities involving live animals for experimental and scientific purposes
• Activities which give rise to environmental impacts that are not largely mitigated and or compensated
• Sectors considered ethically or morally controversial
• Pure real estate development activity
• Financial services
• Activities provided by Government.

Specific targets

The Wales Business Fund aims to support over 400 businesses in Wales with a target of over half of these investments being in West Wales and the Valleys. These investments are targeted to secure over £75million of private investment for the SMEs.

The Wales Business Fund’s core targets are to increase employment by 3,585 and to support the introduction of 25 new to the firm products.

Value added indicators for the Fund are to:

• safeguard 6,655 jobs
• facilitate 14 collaborations with research institutions
• facilitate 18 new to market products
• facilitate 16 registered patents.

Contact details

Name: Development Bank of Wales
Email: info@developmentbank.wales
Telephone: 0800 587 4140
Address: Development Bank of Wales, 1 Capital Quarter, Tyndall Street, Cardiff, CF10 4BZ
Website:
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Additional details

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Progress

Progress to end June 2017

The Wales Business Fund has made investments into 63 enterprises, with the total value of investments at £25.9 million to date. Private sector funding sourced to match this funding has totalled £69.6 million to date. This represents £2.70 invested from the private sector for every £1 from the Wales Business Fund.

Progress against jobs created is measured a year after the initial investment. Due to the investments not yet reaching the 12 month mark, jobs created data has not yet been captured, but the Fund has safeguarded 890 jobs to date.