Cardiff’s tech sector has raised £7.4m in growth capital so far this year in disclosed deals as new figures show the sector’s UK-wide valuation hit the $1 trillion mark.
Cardiff is among the top 10 cities in the UK with £7.4m of investment raised so far in 2022, according to figures calculated by Dealroom and analyzed for the UK’s Digital Economy Council.
Among the deals, the largest was in fintech company Delio, with a £6.1m seed round. The other investments concerned SmallSpark Space Systems and TropCo.
However, deal flow and values were higher in many competing UK cities in the first quarter. Manchester (six deals) had a total value of £16m, Edinburgh (13 deals) worth £84m, Belfast (4 deals) worth £10.9m and Glasgow (four deals ) worth £36 million.
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Cardiff’s tech sector outperformed Bristol with its six deals and a value of £2.9m and Newcastle £2.5m with three deals.
As expected, with its population of tech companies, London has seen the most deals so far this year with 184 deals worth a combined £5.3bn, followed by Oxford, whose those six deals were worth £84m. Cambridge (8 deals) has so far this year generated a total deal flow value of £80m.
The value of deals in Cardiff accounted for 0.11% of the UK tech sector’s total fundraising of £6.5bn. For the year to date, the amount of fundraising for Wales (eight deals) is £10m.
Cardiff’s tech sector raised £82m last year, including £108m for Wales as a whole.
On the latest $1 trillion valuation, the sector in Wales is valued at $14.7 billion, or 1.5% of the UK total.
Cardiff is home to a “futurecorn” – a high-growth tech company with an estimated valuation of $1 billion over the next few years – in the form of fintech Sonovate. The company provides financial and technological solutions to recruitment agencies and other businesses to hire contractors and freelancers.
Gareth Lewis, co-founder and managing director of Delio, said: “The Welsh tech scene has had an exciting period of growth, and it’s really encouraging to see more local businesses thriving. Now is the time to take this progress to the next level and strengthen our reputation on the international stage. At Delio, we have the pleasure of working with more than 90 financial institutions around the world, and we are not alone in this. It is important to celebrate the number of businesses across Wales that are starting to operate globally.
UK Digital Minister Chris Philp said: “The UK tech industry has gone from strength to strength over the last few years and all that hard work and dedication is paying off now that it has become the third ecosystem in the world to reach $1 trillion in value. . It’s great to see how every tech company in the UK, from early-stage startup to world-leading decacorn ($10 billion plus valuations), has a role to play in improving the ecosystem and making it thrive.
Of the 13 technology-based decacorns from the UK, one is loans from the Cardiff head office to home insurance company Admiral. It is a market capital of just over $10bn (£7.7bn)
Yoram Wijngaarde, Founder and Managing Director of Dealroom, said: “The UK is only the third country in the world to reach this $1 trillion valuation milestone. The explosion in venture capital investment triggered by the pandemic amid overwhelming demand for digital services for healthcare, education and food delivery has helped spur this growth, but the foundations have been laid well. before 2020.
“As businesses and investors grapple with the global challenges of 2022, from the Russian war in Ukraine to the ongoing supply chain crisis and rising cost of living, it will be interesting to see how tech ecosystems like the UK’s adapt and adjust.”