Here we feature the latest equity and related investment deals in Wales.
Market Dynamics, a pioneering fintech start-up on a mission to democratise systematic trading for retail financial traders, has moved its operations from London to Cardiff following equity investment from the Development Bank of Wales.
Market Dynamics unlocks systematic trading for new traders and all those not able to code, simplifying a formerly complex process. Its intuitive visual-based app allows traders to build, test and trade using fully automated strategies without writing a single line of code.
The company recently closed a pre-seed round of £520,000 led by the Development Bank alongside a cohort of strategic angels, including Bebo co-founder Paul Birch as chair.
Andrew Grevett, co-founder, said: “Market Dynamics provides a simple method for anyone to transform their ideas into fully automated trading strategies without the need for any coding knowledge whatsoever.
“Our simple and intuitive no-code approach engages tech-savvy traders around the world, across all ages, demographics, wealth stages, asset classes and levels of financial expertise. Opening up the full power of systematic trading for retail traders is a huge opportunity and we believe our visual approach is the key to driving mass adoption.”
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The firm was moved to Brigantine Place in the city. Mr Grevett “Moving to Cardiff provides us with access to Wales’ wider fintech and tech sector, and we’re really looking forward to working in this environment.”
Jack Christopher, assistant investment executive at the Development Bank of Wales, said: “The team at Market Dynamics is committed to democratising technical trading for a rapidly growing, younger audience of traders actively seeking new methods to access systematic trading, which can often seem to be a complex world for beginners.
“Andrew and the Market Dynamics team possess vast experience of systematic trading, and have previously built highly successful companies and products.
“We are delighted that our support and investment has brought them to Wales. We wish them every success as they establish themselves in Cardiff and grow within Wales’ fintech sector.”
The Development Bank of Wales can support growing technology ventures with investment from £50,000 to £10m. The tech venture investments team is mainly sector agnostic, seeks co-investment, and invests from pre-seed to series A and beyond.
Afon Technology
A South Wales medtech firm developing the world’s first wearable real time blood glucose sensor for diabetes sufferers has received a £2.1m funding boost.
Caldicot-based start-up Afon Technology has secured funding for the European Innovation Council to support its commercialisation plans.
Unlike current devices, Afon’s technology will allow for the measurement of blood glucose levels without the need to penetrate the skin , making it easier to manage the condition and reducing the risk of diabetes-related complications such as heart attack, stroke, blindness, kidney failure and limb amputations. The compact device is designed to be worn with a watchstrap connected via bluetooth to the user’s smart watch/device - giving users freedom from the constraints of conventional finger-stick devices.
The latest funding boost for Afon follows a recent £600,000 seed equity investment from an undisclosed investor.
Afon Technology’s chief executive Sabih Chaudhry said: “We are thrilled to receive this funding from the European Innovation Council which will help us to fast track our innovative work through to commercialisation and ultimately make a huge difference to the lives of those who have diabetes.
“We would like to give special thanks to innovation and commercialisation grant agents Inventya who helped us throughout the application process and interview stage.
“Afon Technology has the single focus of commercialising a wearable, non-invasive blood glucose monitor to benefit people with diabetes all over the world.
“Diabetes can be incredibly limiting to someone’s life, but we believe we’ve created a device which will provide the wonderful feeling of freedom all wrapped up in a watch type device on the wrist.”
Afon, which was founded in 2019, was selected from over 1,000 start-ups and SMEs that submitted a full application to receive a share of the €470m available in a combination of grants and investments under last EIC funding.
Last year Afon Technology relocated from Chepstow to Caldicot into larger bigger premises.
Yellow Sub Geo
Yellow Sub Geo has secured a significant new investment from private investors and the Development Bank of Wales to support the launch and growth of its Yellow Sub Hydro digital water technology business.
The investment will support the development and further commercialisation of Yellow Sub Hydro’s Periscope product. Periscope is a Software-as-a-Service (SaaS) modelling environment which provides simulations for water resource management at catchment scale.
Combining the power of cloud computing with applied mathematics, hydrology and data science, Periscope enables catchment-scale water modelling setup and cycle times to be drastically reduced from years to days. It has been developed as a technology to drive more meaningful stakeholder engagement and to democratise access to data across sectors heavily reliant on water resources such as industry and agriculture.
Alex Egan, chief executive of Cardiff-based Yellow Sub Geo said:“These are hugely exciting times for us aboard the Yellow Sub, with Periscope now poised to make a material impact at the nexus of population growth, climate change and the 4th industrial (tech) revolution. We firmly believe that providing actionable information to key stakeholders in water, at scale, internationally and across multiple sectors and industries has the potential to be transformative in the race to build adaptation and resilience into our society’s delicate life support systems.”
Alongside private investors, the company worked with the Angels Invest Wales network, part of the Development Bank of Wales and the biggest angel network in Wales, which exists to connect experienced investors with Welsh businesses seeking private investment.
Further investment from Angels Invest Wales came via the Wales Angel Co-Investment Fund, which supports the creation of angel syndicates and networks across Wales by providing loans and equity to investors looking for co-investment.
Guy Sochovsky leads the Angels Invest Wales syndicate. He said: “We are very excited to offer our support to the Yellow Sub team. They have identified a real market need to bring the latest scale cloud computing and analytical insights to hydrological modelling. Water resource management is subject to major changes in demand requirements as a host of industries move from legacy land and resource uses towards sustainable asset management. We believe enabling Yellow Sub to invest into its technical base and data science creates the opportunity to drive true innovation and broad-based value.”
Tom Preene, operations manager for Angels Invest Wales, said: “The work being done by Yellow Sub Geo is at the forefront of environmental and hydrological monitoring, and systems such as Periscope provide much-needed data to clients in vital sectors. Backing pioneering Welsh companies like Yellow Sub Geo is a core part of our role, and we’re very pleased to have worked alongside angel backers to get them the investment backing they need to develop their systems.”
Dr Jez Lofts, chairperson and director of Yellow Sub Geo added: “We are pleased that through working with Angels Invest Wales we have been able to secure investors who not only see the potential in the technology we’ve developed, but also share our values and back our B Corp-certified approach to business which is having a positive impact.“
Yellow Sub Geo was advised by Taylor Vinters, a global legal and advisory practice supporting organisations that are adding impact and driving the innovation economy.
Flotek Group
One of Wales’ leading telecommunications companies has been acquired by growing Cardiff IT and communications service firm, Flotek Group. Swansea-based Saecom has bought by the managed serviced provider (MSP)for an undisclosed sum.
The deal marks the fourth acquisition made by Flotek since it launched less than a year ago in April 2022 as it continues its acquisition-fuelled growth. The deal was advised on by GS Verde.The start-up has previously acquired Gower Business Systems, Plymouth IT firm MazingTree and Swansea’s Cloud9ine Communication.
Founded in 2014, family-owned Saecom provides guest wifi, mobile, internet of things (IoT) and specialises in voice over internet protocol. The buyout will enhance Flotek’s service as well as allow Saecom’s large client base access to the firm’s technologies.
Saecom owners and father-and-daughter team, Stephen Evans and Amy Evans, join Flotek along with the whole Saecom team. Ms Evans will take on the role of group billing manager while Mr Evans will utilise his 35 years’ experience to help grow the telecom arm of Flotek.
Jay Ball, Flotek Group chief executive, said: “With an incredible reputation, a prime Swansea business location and decades of experience, we are delighted that Saecom is joining Flotek. The business’ telecom-focused service offering is a natural fit with Flotek’s, augmenting the smart, integrated IT and comms solutions we provide to customers
“Our success so far reflects our commitment to maintaining the dedicated customer support valued by SMEs, while helping them unlock new potential through next generation, scalable technologies. Saecom’s specialist telecom services enhance the full turnkey service offering that sets Flotek apart as an integrated MSP.”
Stephen Evans, founder of Saecom, said: “We at Saecom are excited to join the Flotek team, which has established itself as an innovative and exciting figure within the industry. The consolidation of our telecom and Flotek’s IT MSP solutions creates enormous potential for clients, developing the opportunity for growth and progression through modern, cloud transformative technologies.”
Agam
A fintech start-up, providing an AI-based credit scoring service to people without a credit history or those looking to secure small loans, including for SMEs, has relocated to Cardiff on the back of its third equity investment round as it looks to expand.
Investors backing the round into Agam, the value of which hasn’t been disclosed, include the Development Bank of Wales.
The company, which currently employs 20 in the UK and Bangladesh, has relocated from London to the Welsh capital.
Set up to 2019 by its chief executive, Shabnam Wazed, it has undertaken a pilot of its platform in Bangladesh with Prime Bank, one of the country’s leading private and commercial banks.
Recently Agam, which means advance in Bangla, announced a first of a kind partnership with Bangladesh’s inaugural digital-only microfinance provider, SBK Foundation, to give entrepreneurs and gig economy workers access to loans.
Agam is looking to further scale its operations, including applying the approach in other markets, with India identified as the next market.
Ms Wazed, 30, said: “We are delighted to have attracted the backing of a range of international investors from UK, EU, US, and Asia. This funding will enable us to accelerate our mission, both in terms of developing the technology which underpins the platform, facilitating new commercial partnerships, and by entering new markets following the successful deployment in Bangladesh.”
Jack Christopher of the Development Bank of Wales said:“Agam is exactly the type of fintech firm we want to work with, and we are especially pleased to see them take root in the Welsh tech system – which is an ideal fit for their aspirations and operations.
“Agam is already seeing a positive impact in Bangladesh and can do the same for other countries in the future. It’s a great example of investors seeking to generate returns on their investments while also fulfilling their environmental, social and governance obligations. We are looking forward to the journey ahead with Agam and its founder Shabnam Wazed.”
Driverly
Cardiff-based subscription-based car insurance fintech, Driverly, has been boosted with a significant six-figure pre-seed investment round.
The Development Bank of Wales has invested £250,000 in equity into the start-up as part of a £525,000 pre-seed investment round that also involved serial entrepreneur Manuel Santiago as an angel investor, and Duncan Russell, a former chief finance office at Admiral Financial Services.
Driverly’s service tracks users’ driving, with new subscribers downloading the Driverly app and taking an initial test drive to provide data on their driving habits.
It then offers users a price for their insurance based on the app’s assessment of their driving, with the subscription price locked in for the first three months.
Driverly continues to monitor the customers’ driving behaviour throughout their policy term, and adjusts prices based on this behaviour and market conditions. There are no additional fees for customers, including cancellation fees.
As well as basing costs directly on customers’ driving, Driverly also rewards good drivers with digital “acorns” as part of its rewards programme, which they can convert into vouchers or discounts.
The service has already proven popular with younger or new drivers, who normally face much higher car insurance costs than other age groups.
Armin Kia, co-founder and chief executive of Driverly and former head of business planning and development at Admiral Financial Services – part of FTSE 100 Admiral Group – said: “We’re really glad to have been supported by the Development Bank of Wales, which will help us to further develop our technology and enter the car insurance market on a strong footing.
“Car insurance is a cost which all drivers have to face, but our approach to insurance gives drivers – particularly new or younger drivers – the flexibility they need as their living costs have increased everywhere else. Our monthly policy affords these customers flexibility, with the guarantee of zero fees.
“We look forward to getting our app and our service to more and more users, and are very grateful for the development Bank’s support.”
Jack Christopher, assistant investment executive at the Development Bank, said: “We’re impressed with Driverly’s disruptive approach to car insurance. Their behaviour and performance-centric approach is disrupting the normal top-down method, which dictates how much drivers should pay based on factors like demographics or location.
“Driverly is among a number of thriving Welsh fintech companies we have been pleased to support with pre-seed investment, and we look forward to being a part of their journey."
The Kingsward Group
Young entrepreneur Will Kinder has been appointed managing director of the Kingsward Group following a management buy-in that has enabled the founding directors to retire.
Margaret and Alan Keetch have sold the Ferndale-based metal fabrication business that they established in 1990 to 32 year old Mr Kinder, previously a director of engineering company Aluqo which is a customer of the Kingsward Group. Funding for the management buy-in was provided by the Development Bank of Wales with a mix of debt and equity alongside the growth and working capital provider, Growth Lending.
Employing 25 people on the Oaklands Business Park in Ferndale, The Kingsward Group incorporates three separate businesses specialising in tube bending and welding, laser cutting and powder coating. Key markets include office furniture and retail.
As managing director, Mr Kinder is being supported by Jason Keetch who is staying with the business as operations director. The development bank has then appointed experienced non-executive director Mark Pulman as chair of Kingsward with David Pearce of SME Finance Partners taking the position of finance director.
Mr Kinder said: “With a background in engineering and manufacturing, I understand the importance of high quality production and processes. Having known Kingsward as a customer, I know just how well-respected the business is as a local employer with excellent standards.
“Margaret and Alan have built a solid business but the time is now right for them to realise the value of all of their hard work over the years and for me to work with the team to realise the future potential.
“We’ve got a loyal and long-standing workforce who have made the business what it is today. We also have a customer base that wants to work with local supply chain partners to help boost the local economy and reduce carbon footprint. We’ve therefore got a great opportunity for growth by maintaining quality but expanding in to new markets.
“With the continued support of Jason as Operations Director, the Development Bank as our investment partners, Mark as chair and David taking care of the finances, we’ve got a winning team. Indeed, I’ve quickly realised the value of having such great people on my side – as a young entrepreneur, it’s given me real confidence as I focus on the long-term sustainable success of Kingsward.”
Emily Jones and Ashley Jones, investment executives with the Development Bank of Wales said: “At just 32, Will is one of the youngest entrepreneurs that we have supported with a management buy-in to date. He has built a successful career and has the drive to deliver on his vision for the Kingsward Group as a well-established engineering business with the support of an excellent team around him.
"With a mix of debt and equity, we’ve been able to facilitate a management buy-in that retains this specialist engineering business in the local area and safeguards jobs with flexible and affordable finance. We look forward to working with Will in his new role.”
Klevin Thomas, principal at Growth Lending said: “It is good to work in collaboration with the Development Bank of Wales to support a local business with growth potential. Recognising a strong proposition and how appropriate investment can take it to the next level is exactly what Growth Lending is all about, so we are pleased to support Kingsward as it continues on its growth journey.”
GS Verde advised Mr Kinder on the purchase and Capital Law acted for the Development Bank of Wales.
Jellagen
Biotech firm Jellagen, which extracts collagen from jellyfish, has raised £8.7m in a series A equity investment round.
The Cardiff-based Jellagen has secured investment from the Cardiff Capital Region (CCR), the Development Bank of Wales, and the Thai Union Group PCL.
The Development Bank of Wales invested £1.2m in equity, while the Cardiff Capital Region, through its City Deal, backed the investment round with £2m with the aim of building medical device expertise in south Wales and growing the sector in the region.
Thai Union Group PCL also invested an undisclosed figure in Jellagen via its Corporate Venture Capital Fund. The group is one of the world’s leading seafood companies and one of the largest producers of shelf-stable tuna products owning British household brand, John West.
The funding round will enable Jellagen to reach a major milestone in providing safety data generation and prototype validation on its leading soft-tissue healing program, bringing it closer human trials of using collagen derived from jellyfish to help heal human organs.
Most collagen used in treatments comes from mammals such as pigs, cows and rats, which can increase the risk of diseases or viruses when used in humans. The jellyfish-sourced collagen – also known as Collagen Type 0 – used by Jellagen has shown improved results in tests when compared to mammal-sourced collagen in preclinical testing.
The Cardiff firm has established development collaborations with top research organisations including the Mayo Clinic in the US and Europe to investigate and corroborate these findings.
Jellagen chief executive Thomas-Paul Descamps said: "It is a great achievement and a major step to have secured this pivotal Series A round in such a challenging economic environment. I want first to thank our new investors and our existing shareholders for their trust in the incredible potential of the Jellagen technology platform.
“Cardiff Capital Region City Deal and the Development Bank of Wales are providing us with a unique local Welsh ecosystem to support the growth of Jellagen as a future global medical devices and biomaterial leader based in Wales. In addition, the investment of Thai Union is a game-changer in securing Jellagen sourcing and enabling future manufacturing scaleup.
Combining the immense possibilities of our Collagen Type 0 with this enlarged investor base will help unleash the considerable potential of the Jellagen technology platform.”
Mark Bowman, deputy fund manager at the Development Bank of Wales, said: “We’re hugely pleased to have backed Jellagen as part of this funding round.
“Wales is host to a number of pioneering biotech companies and we were pleased to join the Cardiff Capital Region City Deal in supporting Jellagen – our combined backing will allow us to grow a sector which is already strong in the region, and strengthens Wales’ position as host to a thriving medical sciences sector.”
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