Getting the right investment can transform your business
Equity financing is raising capital from investors taking a stake in your business for cash. Unlike taking a loan there are no monthly repayments required.
Equity finance can be used across the business lifecycle. It can provide seed finance to tech start-ups, growth capital for established businesses, and support management teams when buying a business. It is a versatile type of finance that can be used alongside loans.
Find out more about equity in our blog post, What is equity finance and how does it work?
Equity finance carries a number of benefits:
- Investors will bring added value in the form of expertise, knowledge and contacts to help drive your business forward
- Can be an effective way of enabling faster growth and long-term value creation
- Carries no repayment obligation
- Allows you to quickly take advantage of opportunities which you might otherwise miss by self-funding your business
Debt finance comes in various forms, but it essentially involves borrowing a lump sum, which you then pay back over time plus an agreed-upon amount of interest. There are a number of key differences between debt and equity finance, including repayment, ownership, security, and the fundraising process. Find out more about how these forms of financing compare by reading our blog post, What is the difference between equity and debt?
The Development Bank of Wales is one of the most active equity investors in the UK.* Because of the funds we manage we’re able to provide equity funding from seed finance all the way to business succession. We have specialist equity teams who are experts at finding and working alongside other co-investors. We are also able to provide bespoke equity and loans packages to meet your business needs.
With us as an equity investor, you’ll quickly get access to the support, expertise, and guidance your business needs, including:
- A high-quality investor network of over 250 business angels
- Management training schemes
- Access to specialist consultancy services to help accelerate your growth
- Referrals to business support services such as Business Wales and Welsh Government
- A database of experienced non-executive directors to help you strengthen your board
- Introductions to finance experts such as corporate finance advisers and finance directors
Value creation plan
We work with you to develop a value creation plan and exit strategy, which is aimed at maximising value for all shareholders over time.
Sharing best practice
We help you to develop good governance and get the most out of your board. We work with SMEs across many different sectors and can connect you with other businesses to share best practice and develop commercial relationships.
Our exclusive events provide useful information to help you develop your business, as well as the opportunity to network with experts and other entrepreneurs.
One source of equity finance is angel investment. Angels are typically high net worth individuals who use their own money to invest in companies with strong growth potential. You can find out more about angel investment in our blog, What is angel investing?
Part of the Development Bank of Wales is Angels Invest Wales, the biggest angel network in Wales.
Choose your business need
Equity for growth
Whether you’re looking to expand operations, move into new markets, or diversify products, we can give you funding and expertise to execute ambitious growth strategies.
Equity to support buying a business
We have years of experience in structuring equity finance to support management buyouts, management buy-ins, acquisitions, employee buyouts, and more.
Equity for developing a tech venture
Expanding Horizons with Equity LIVE
In November 2021 we held a half-day conference bringing leading finance figures and business owners together to share their experiences of equity investment to help businesses based in Wales.
The event included 22 speakers including well-known entrepreneurs and investors such as Piers Linney, Frank Homes and Sherry Coutu.
Key themes were:
- The Art of Fund Raising
- Business Angels - Finding the right investor fit
- The Power of NEDs
- Succession planning
- In conversation with Piers Linney
Investing in Wales support report
We commissioned Beauhurst to research into high growth startups and scaleups in the Welsh ecosystem.
The report studies Welsh investment activity between 2011 and 2020 identifying1,215 high growth companies in Wales, which have raised £882m across 1,201 deals over the last ten years.
The research suggests that Wales is becoming a springboard for a new generation of high growth companies.