Innovation Investment Capital, a new fund focused on providing innovative Cardiff Capital Region businesses with long-term capital, has been launched at an event at the Principality Stadium in Cardiff.
Over 150 people attended the event to hear a range of speakers including David TC Davies, Secretary of State for Wales, discuss the importance of innovation to the future growth of the Welsh economy and how this new fund can support businesses in the Cardiff Capital Region.
IIC is designed to increase the availability of long-term capital in Southeast Wales by encouraging economic growth through investments in innovative and scalable businesses – with the initial £50 million provided by the CCR City Deal, and additional funding expected to come from one or more co-investment partners, to further increase the overall fund size.
IIC is focused on catalysing ‘good growth’ and helping address wider environmental, social and governance issues in the Region, by aligning business innovation to the Wellbeing of Future Generations Act – ensuring that the businesses who qualify for funding strengthen their ESG credentials.
For investment consideration, businesses must be based in (or relocating to) one of the ten unitary authorities of Cardiff Capital Region, which stretch from Bridgend to Monmouthshire and into the South Wales valleys – an area that represents over half of Wales’ population and economic output.
Investments will vary in size, but broadly between £2m and £7m, with the fund generally seeking an equity stake of greater than 10%.
PwC has been chosen to manage the sourcing and project management of new investment opportunities and Capricorn Fund Managers is the fund’s Alternative Investment Fund Manager.
Secretary of State for Wales, David TC Davies said:
“I’m delighted that £50m of UK Government funding is being used to kickstart and grow entrepreneurial businesses in the Cardiff Capital Region. Our focus is on encouraging investment in Wales, growing the economy and creating well paid jobs.
“This new fund will help to deliver our priorities. I wish them every success and look forward to seeing the results.”
John-Paul Barker, Regional Market Leader for PwC in Wales & the West, said:
“IIC will change the landscape for scalable, entrepreneurial businesses in South Wales, and PwC is very proud to be able to play a part in its success. The region is home to a rich community of innovators; this fund will provide the necessary support and investment to supercharge their growth and turn them into national or international players.”
Kellie Beirne, Director CCR City Deal, said:
“IIC has been developed as a response to the overwhelming need for innovation-led growth in the CCR. This £50 million commitment to nurturing innovation is a testimony to our desire to champion the enterprises that bring strong comparative advantage to Cardiff Capital Region – showcasing our deep determination to connect capability by providing access to the long-term capital that is so central to scaling up a high-performing innovation ecosystem.
“We are delighted to have selected PwC and Capricorn Fund Managers to deliver IIC, and look forward to working together to help our SME’s deliver on their growth ambitions.”