The Development Bank of Wales has released new figures showcasing its support of the technology sector in Wales, combining patient capital with strategic co-investment to fuel innovation across the region.
It has now channelled nearly £90 million of capital and unlocked a further £195 million from co-investors into 292 tech ventures in Wales.
After a pandemic-driven lull, tech investment by the Development Bank has recovered strongly, climbing 29% since 2022 and projected to be 36% higher in 2025/26 on a pro rata basis. This trajectory underlines the role of stable, publicly backed capital in catalysing private investment into the region’s high-potential ventures.
The Development Bank’s investment appetite is broad ranging from a few hundred thousand to several million, reflecting the needs of businesses as they progress from seed to Series A. By taking minority stakes and focusing on these formative stages, Wales has maintained a high number of deals, enabling founders to grow their business without losing control.
The statistics, which cover the period since its 2017 launch, have been made available as Wales prepares to host Wales Tech Week (24–26 November 2025), where the Development Bank of Wales will play a key role.
The public finance institution, which is owned by the Welsh Government, is increasingly a first port of call for both early-stage founders and large-scale investors looking to engage with the country’s vibrant tech ecosystem – something even more crucial when private sector investors retreat.
That has been the case in recent years. According to the latest British Business Bank’s annual Small Business Equity Tracker, published in June, UK-wide there were declines in both deal numbers and investment values. However, Wales emerged as a rare bright spot with deal volumes rising by 7.2% in 2024 compared to 2023. The broader UK market saw a 15.1% decline in equity deal activity.
But while many private investors remain cautious amid economic headwinds, the Development Bank’s public ownership ensures a steady, counter-cyclical flow of capital. By sustaining investment during downturns, the Development Bank has helped Welsh tech companies to grow, innovate and commercialise cutting-edge ideas despite a turbulent wider market.
It has completed a number of other notable deals in this sector of late. In July it invested in Cwmbran-based Amotio, which completed a pre-seed funding round of £810,000, led by a £500,000 equity investment from the Development Bank of Wales. The funding will be used to advance technology that will support better post-operative care and recovery times for joint-surgery patients throughout the global healthcare market.
Another company flourishing thanks to the Development Bank’s support is Reacta Healthcare, a Deeside business transforming the way food allergies are diagnosed. It employs 80 people and its products are shipped to over 300 clinical trials sites worldwide. Having first backed Reacta in 2019, the Development Bank has now invested £2.8m in equity to help the business to scale its manufacturing capacity and extend its product portfolio.
Rebecca Evans, the Welsh Government Cabinet Secretary for Economy, Energy and Planning, said:
“We are committed to driving a culture of innovation and the use of new technologies as a key part of the inclusive, sustainable and resilient economy we are delivering.
“The Development Bank of Wales is playing a unique role in supporting our talented and ambitious digital leaders and tech businesses to capitalise on the many opportunities offered by digital transformation.
“By promoting innovation and increasing prosperity, they are helping us provide high-quality jobs and growth today and for the industries of tomorrow.”
Duncan Gray, Technology Venture Investments Director at the Development Bank of Wales, said:
“We are in an age of innovation. AI is creating more ideas and more ventures than ever before – but turning ideas into sustainable businesses requires stable, capital and long-term support from investors that goes beyond cash. In a world where private capital can retreat during downturns, our consistency is a competitive advantage for Wales. We provide founders with stability with funding that depends on the strength of the investment case rather than wider macroeconomics – enabling innovation to thrive even in challenging markets.
“Capital knows no borders and world-class Welsh business can and do raise funding globally. Our approach ensures founders receive not just capital but strategic support and co-investment opportunities. For every £1 we invest in an early-stage tech business, we attract more than £1 in private capital, a multiplier effect that brings new funders to Wales to strengthen the ecosystem and underlines our model combining public purpose with private sector discipline.”
