New Innovation Fund for the CCR

Apr 28, 2022

The Cardiff Capital Region are developing a new £50m innovation Fund to provide patient capital for innovation-led businesses looking to scale-up in the Capital Region.

The Fund will be managed by an external Fund Manager who will be appointed in May and is intended to launch at the end of Summer or in the early Autumn once the Regional Cabinet has given its approval.

It will be open to any innovation-led business to apply for equity investments from £2 – £7m.  Innovation will need to be at the core of the business growth, and so Research and Development are expected to be prominent aspects of the businesses that are successful in their application.

Businesses will also be expected to evidence alignment to the core aims and outcomes of the City Region. For example, the creation of high value jobs in the region rather than jobs in call centres or distribution centres.

It will be open for approximately five to seven years, however if there is sufficient market demand there is potential to provide additional funding and extend the life of the Fund

Individual investments will likely be made on a five-to-ten-year basis as the purpose of the fund is not to generate rapid ROI, but to provide the patient capital that these businesses require.  It will not support start-ups or spin-outs, nor will it provide debt funding.

Further details, including a full investment strategy, will be announced soon!