🚨 Shocking Reality Check for Welsh Tech Entrepreneurs! 🚨
A recent report from UK Research and Innovation sheds light on a critical issue in Wales – a lack of support for tech spinouts! While Wales punches above its weight in creating innovative companies, we’re falling short when it comes to financing them. 🤔
Did you know Welsh spinouts account for 3.6% of UK university spinouts but receive only 1.4% of pre-seed and seed investment? Even more alarming is that we’re only capturing 0.1% of early-stage VC equity! This is a major market failure that stifles growth and innovation. 😧
Between 2013-2024, we’ve seen a drop in spinout formations from around 19 to just 7 per year. Economic growth, job creation, and the potential of home-grown businesses are at risk. Without crucial early-stage investment, so many promising ventures remain in a state of “nearly ready” and fail to scale. 🚫
The majority of Welsh spinouts aged three years or older haven’t secured later funding, and just 2% have received VC rounds over £10m. With just 1.1% of VC firms having a presence here, Wales struggles to attract experienced investors to back winners, leading to weaker syndicates and slower progress. 😞
Cardiff Capital Region sits on a £50m investment fund amidst a thriving semiconductor sector, yet hasn’t turned this potential into scalable businesses. Despite public and private funding, success stories like Draig Therapeutics are rare. 😓
Wales needs a robust funding system to guide promising spinouts from lab to market. Economic bodies need to create pathways from pre-seed to growth, ensuring that Welsh innovation transforms into thriving businesses right here in Wales. 🏆
It’s time to face reality: without meaningful investment and development, our tech economy can’t thrive. Let’s work towards robust funding for Welsh spinouts to drive innovation, economic growth, and job creation. Let’s make our tech firms a real strength of the Welsh economy! 🌟
#WelshInnovation #TechFunding #StartupChallenges #SupportLocalBusinesses