50,000 jobs created and safeguarded by Welsh Government-owned bank

Martin Shipton

More than 50,000 jobs have been created and safeguarded by the Welsh Government’s Development Bank of Wales since it was established eight years ago, it has been announced.

In a major data release, detailed figures show that over the period it has operated, £1bn has been invested in equity, debt, and property.

This level of investment has supported 51,089 jobs and generated £5.8bn in jobs-based GVA (Gross Value Added, a variation of GDP), an almost sixfold return in economic value. The Development Bank’s contribution to the nation’s economy has unlocked a further £636m in private sector co-finance, amplifying its overall impact.

As many as 4,699 different businesses throughout Wales have benefitted from 5,184 investments by the Development Bank since 2017. This includes £89m for 292 innovative tech ventures, and £275m for Welsh property developers to build 2,302 new homes.

In north Wales, 1,078 businesses have benefitted from investment totalling £240.4m and a further £135.3m in co-investment.

Some 1,399 businesses in mid and west Wales have had £323.4m from the Development Bank and £143.2m in co-investment.

South east Wales has seen direct investment of £436.5m and co-investment of £375.5m for 2,222 businesses.

Rebecca Evans, the Cabinet Secretary for Economy, Energy and Planning, said: “If companies are to grow, it’s vital they can access finance. Since we set up the Development Bank in 2017, it has acted as a social impact investor, making sure its investments support our priorities, from encouraging entrepreneurship to building a greener economy.

“Reaching the £1bn milestone makes me proud of the Bank’s role in driving economic development. By securing 50,000 jobs, the Bank shows how targeted investment can open up opportunities and support inclusive communities across Wales.”

Support

First Minister Eluned Morgan said: “The Development Bank is part of the support we offer for companies that want to expand and innovate. Wales is a great place to set up a business or invest in projects and this is part of the message I shall be sharing with delegates from across the globe at the Wales International Summit in December.”

Since its establishment, the Development Bank has supported businesses across growth stages including 3,675 businesses with £428m in growth funding, as well as fuelling Welsh entrepreneurship, with 787 start-ups receiving £61m in support. It has also funded 341 succession deals, worth £138m, which has helped to keep established businesses in Wales. There have then been 30 successful exits that have generated over £31m during the period.

Hon. Group Captain Sally Bridgeland, Chair of the Development Bank, said: “Our investments have supported thousands of businesses at every stage of their growth journey — driving productivity, innovation, and job creation.

“With teams embedded across Wales, we take a relationship-driven approach that contrasts with the more transactional nature of traditional finance. These results demonstrate the power of sustainable capital to deliver long-term economic value; bringing ambitions to life and delivering economic benefits for people, businesses and communities across the whole of Wales.”

‘Transformative’

Giles Thorley, Chief Executive of the Development Bank, added: “As we approach the Wales Investment Summit, this milestone reflects the transformative impact of our work since 2017.

“I’m incredibly proud of the footprint we’ve built, reaching every part of Wales. This achievement is a testament to the hard work and ambition of the businesses and entrepreneurs we’ve supported and their drive and ambition. I also want to recognise the dedication of my colleagues, whose personal commitment continues to deliver real impact in communities across the nation.

“By leveraging £636m in private co-investment and deploying recyclable funds, we’re building a legacy of growth and resilience for future generations. £1bn invested in Welsh businesses is £1bn driving Wales forward—fuelling ambition, powering innovation, and unlocking opportunity in every town and city across our nation.”

A breakdown of the money spent shows that 5,184 investments have been made across 4,699 businesses, with an average deal size of £190,000.

The funding mix consists of £564m in debt, £138m in equity and £298m in property.

The Development Bank provided details of a range of investments that have helped businesses.

In north Wales, Mold-based Thorncliffe Building Supplies received a loan of £3.2m from the Development Bank’s Green Business Loan Scheme earlier this year to invest in a new wash plant and water treatment system that will reduce the company’s use of landfill. Established in 1987, Thorncliffe employs 265 local people.

Reacta Healthcare, based in Deeside, is transforming the way food allergies are diagnosed. It employs 80 people and their Oral Food Challenge (OFC) products are shipped to over 300 clinical trials sites worldwide. Reacta Healthcare is recognised as the only OFC supplier working to Good Manufacturing Practice (GMP) standards and operating worldwide supplying global clinical trials. 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. This includes £1m in a £2.9m funding round in 2021 that was led by Manchester-based Praetura Ventures, the venture capital fund manager that targets early-stage businesses in high-growth sectors.

In mid and west Wales LITELOK of Fforesttfach, Swansea received over £500,000 in equity and debt investment from the Development Bank, beginning in 2017, helping the high-security lock manufacturer establish Welsh manufacturing operations and scale production of its lightweight bike and motorcycle locks using patented composite materials. Founded by Professor Neil Barron following a successful 2015 Kickstarter campaign that raised £232,000, the company has grown to 26-30 employees operating from a solar-powered facility, with revenue increasing from £5.2m in 2024 to a projected £7m in 2025. The Development Bank’s patient capital approach enabled LITELOK to develop ‘Barronium’ (a patented composite material that resists angle grinder attacks) with the company now holding seven granted patents, manufacturing 100% in Wales, exporting 25% of sales to the US, and earning recognition in the Sunday Times Top 100 fastest-growing UK companies.

New homes

The Development Bank invested £4.68m for the development of 44 new homes in Newtown, Powys. The funding helped Primesave Homes to progress phases one and two of Oaks Meadow in the village of Sarn, on the A489 between Newtown and Churchstoke.

Mentrus Developments has used a seven-figure loan from the Development Bank to part-fund the development of Maes y Teirw in Carmarthen. The 2.2 acre brownfield site includes a mix of 17 five- and four-bedroom homes along with four three-bedroom affordable properties. All have solar panels and air source heat pumps to ensure maximum energy efficiency.

In south-east Wales, Treforest-based Laser Wire Solutions received investment from the Development Bank, helping the precision manufacturing business scale its operations and develop advanced laser processing technology for mission-critical applications in medical, aerospace, automotive, and data centre sectors globally. Founded by Dr. Paul Taylor in 2011 and operating from the QED Centre, the company has grown to nearly 60 employees with turnover increasing 67% to over £10m between 2022 and 2024, exporting more than 90% of its products to the USA, Mexico, and Costa Rica. The Development Bank’s support was complemented by SMART Cymru grant funding for a Scanning Electron Microscope, Flexible Skills training grants, and SFIS (Smart Flexible Innovation Support) innovation funding, alongside strategic partnerships with Schleuniger and Komax.

Cwmbran-based Amotio received a £500,000 equity investment by the Development Bank earlier this year, helping the medtech business to advance technology that will support better post-operative care and recovery times for joint-surgery patients throughout the global healthcare market. The Development Bank was joined by specialist co-investors NLC Health Ventures with £210,000, and £100,000 from charity Orthopaedic Research UK (ORUK).