Equity finance

Building long-term relationships - we provide patient capital to accelerate growth plans and are active follow-on investors to support further growth. Our appetite to provide follow on funding will be influenced by how the company has performed against the milestones set out in the original business plan. We will take into consideration factors outside the control of management, but it is important to be as realistic as possible in your initial business plan.

Minority shareholder - we do not get involved in the day to day running of the business but will participate at monthly board meetings as board observers and will have consent rights to certain matters to protect our position.

Partnership approach – we will spend time with the management team pre-investment to understand the business plan, the commercial environment and opportunity, your team, and the growth strategy. 

Professional and diligent - we will always undertake due diligence as part of our investment process, which can cover financial, management, commercial and legal. We will do some of this in-house, but we may use external expertise when required. 

Collaborative - we align with other shareholders to drive value for exit and bring our experience of working with growth companies to the table.

Active co-investors - For early-stage businesses, we always look to co-invest with other equity partners, as one aim of the Development Bank is to attract private sector funding to Wales. We will work closely with the co-investment partner through the process, often sharing diligence if practical, whilst maintaining our own decision process and consent rights. The exception to this is the Angel Co-Investment Fund, which is passive. Investments from this fund we will follow the investment decisions of the lead angel investor, subject to eligibility rules.

Added value - Post investment, we support value creation planning and have a dedicated portfolio executive who will work with your business to introduce you to our networks and other portfolio businesses.   

Robust boards and governance - We would look to strengthen your board through recruitment of an external non-executive director, but we would look to identify a suitable candidate with the other shareholders and directors to ensure they bring added value and are a good cultural fit. We have an internal database of non-executive directors that we maintain, but we have also used external recruitment agencies and other networks, including that of the management team.

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.

Our network

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.

Events

Our exclusive events provide useful information to help you develop your business, as well as the opportunity to network with experts and other entrepreneurs.  

Our delivery of business finance is directed by six core investment principles. We focus on encouraging businesses and co-investors to take action that will have a positive effect on the economic development of Wales. Our activity must minimise displacement and ensure an economic return - both socially and financially. You can find out more about our investment principles. 

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.