A Cardiff tech start-up, which has developed a centralised platform enabling medical professionals to train virtually, has secured £300,000 in pre-seed funding.
The investment into firm Virtus Tech, has been backed by SFC Capital as well as angel investors Mark West, Welshman and former chief executive of Standard Chartered Lord Mervyn Davies and one other undisclosed private individual.
Revenue generating Virtus Tech has grown rapidly in the past 12 months - a period which has also seen it securing investment and mentorship from Google as part of Tramshed Tech’s Startup Academy in Cardiff.
Edward Stevenson, investment executive at SFC Capital, said “We are delighted to have led Virtus Tech’s latest funding round. With their easy-to-use technology, it will bring training to a large number of people and can be carried out anywhere, at any time. With the widening adoption of virtual reality/augmented reality, there has never been a better time to invest in the space and the team behind Virtus Tech have the skills and experience to capitalise on this market.”
Virtus Tech provide a no code solution enabling businesses to build a library of unlimited interactive VR training simulations accessible on any device. The VR platform provides industry professionals with the tools to create their own virtual training content quickly and effectively.
The investment will be used for international market expansion, growth of the team and continued R&D within immersive tech with the introduction of new technologies such as haptic feedback to increase the training experience.
George Bellwood, co-founder and chief executive, said: “We are extremely excited for what the future holds at Virtus Tech. This investment round has been crucial to our rapid growth in this sector and Virtus Tech as a team cannot wait to continue disrupting the VR market”.
Its platform has been adopted by an array of sectors including healthcare client NHS Wales who are using the platform to create the Wales Virtual Hospital - a centralised platform to build and distribute learning materials for all medical professionals in VR training. It bridges the gap between web 2.0 and web 3.0 within the medical space and is launching across all health boards and universities in Wales, with the rest of the UK following suit.
Dr Kosta Morley, South Wales major trauma network education Lead says “With VR training, we can see the tremendous potential this would have in diversifying our educational offerings for medical professionals. The Wales Virtual Hospital project provides a simple, effective, and accessible solution for immersive learning, taking learning to the next level.”
Cimteq
Private equity and infrastructure investment manager Foresight has exited its investment from Wrexham-based cable manufacturing and software firm Cimteq following its acquisition by US firm UL Solutions.
The value of the acquisition of Cimteq has not been disclosed. Foresight invested £2.5m into the firm in 2018. Its return on investment from its exit has not been disclosed.
However, following its investment Cimteq more than doubled in size with staff numbers increasing from 18 to more than 40. This has enabled Cimteq to broaden its international reach.
Alongside significantly increasing its research and development investment to ramp up its new product pipeline, Foresight bolstered the company’s senior management team.
Experienced managing director, Mike Braddock, finance director, James Bowling and chief technology Officer, Moti Singh, were brought on to work alongside Cimteq’s founders, Amanda Shehab and the late Ali Shehab, and operations director Rob Douglass.
Foresight’s exit is the is the fifth from its first North West focused regional investment fund - which also covers North Wales.
Fiona Hatch, senior investment manager at Foresight Group, said: “After a successful partnership with Cimteq we are delighted the organisation will become part of UL Solutions, a global leader in applied safety science Cimteq was our maiden investment in North Wales and we are proud to have supported the growth of the business, including the creation of a number of skilled jobs in the area. We wish the team there every future success.”
Ms Shehab, founder of Cimteq, said: “Foresight has supported Cimteq on its journey to become an internationally recognised software specialist. We’ve exceeded our own expectations and couldn’t be happier with the help and guidance we’ve received from Foresight. We are excited to see what Cimteq can achieve on the next part of its journey as part of UL Solutions.”.
Foresight was advised by Carlsquare and law firm DLA Piper.
Development Bank of Wales
The Development Bank of Wales has reported record support for business succession deals - with equity backing a key component of activity.
In its 2021/22 financial year it backed more than 40 new management teams supported as they took control of businesses.
It represents the highest number of succession deals backed by the development bank in a single year. More than £17m was invested via succession deals - supporting incoming teams and outgoing owners across a range of sectors. Around £4.2m of the investments made were achieved through equity, accounting for approximately a quarter of all succession deals.
In the last five years the development bank, which is wholly-owned by the Welsh Government, has invested more than £50m to support succession transactions, backing more than 150 businesses.
Business succession – in which the ownership of a business is passed to another person or management team – is an important part of the business cycle, especially as owners look ahead to retirement.
The development bank works with new management teams to take on the ownership of long-standing companies, by helping to raise the capital needed to buy existing businesses.
It also works with owners to secure their legacies and pass their businesses on to new hands – as well as helping them to realise the value of their businesses before retiring or focusing on other projects.
Routes to succession include management buy-outs, management buy-ins, buy-in management buyouts and employee buy-outs.
One of the businesses backed through succession by the development bank last year was Abbey Glass, a Pontyclun-based bespoke glass manufacturer which provides glazing and other fixtures to developers and commercial firms – including Whitbread, Marriott & JD Wetherspoon.
Angela Worgan, who served as managing director of Abbey Glass from early 2020, took ownership of the business following a succession deal in March this year.
She started part-time at Abbey Glass in an admin support role in 2006, and worked her way through numerous roles – including project manager and commercial director – before taking over as the owner in March.
The deal was backed by the Wales Management Succession Fund, which is tailored specifically to helping businesses undergoing succession.
Ms Worgan said: “I’d been MD for a two-and-a-half years, and I’d always aspired to reach an ownership position, either by starting my own business or a stake in the business I was involved in myself.
“When our former owner was looking towards the future and retirement, I knew it was the opportunity to finally become an owner myself.”
She added: “I’d spoken to some companies who could have provided the finance, however the guidance and support provided by executives at the Development Bank of Wales was what initially interested me. I knew the deal would be complicated and I would need support, so I appreciated the knowledge and expertise that they were able to offer”.
“There must be so many like-minded people out there who think it is incredibly difficult to raise the investment monies needed to co-ordinate such a succession deal, however there are so many different ways of sourcing that funding.
“Not only has it allowed us to plan for growth, but it has also pushed us towards better governance and opened our minds as a team to take the business forward.”
Scott Hughes, investment executive at the development bank, said: “We’re really pleased to have hit a milestone year for succession deals, supporting businesses across Wales as owners look at passing on their businesses and management teams look at the potential of new ownership. This also helps us to deliver one of our fundamental objectives to retain and preserve Welsh-based businesses in Wales.”
“We encourage businesses to think about succession and look at planning for transferring their business early, and to make sure they have the right processes in place. We can provide the support and investment needed to make buy-outs as smooth as possible.”
If you’re a business owner or management team looking to buy or sell a business in Wales, the Development Bank can help with loans and equity up to £10 million and follow-on funding.
Wynnstay Group
Agricultural supplies Wynnstay Group has raised more than £10m.
The Powys-based business, which is listed on the Alternative Investment Market, raised £10.6m - minus expenses, through the placing of 1.9 million new shares.
The company has been experiencing strong trading supported by buoyant farmgate prices across most categories, which has boosted farmer sentiment and farm investment. The directors of Wynnstay have identified a number of opportunities to accelerate the growth.
Its chief executive Gareth Davies said:“We believe that this is an important fundraising for Wynnstay. It will support both the planned redevelopment of the Calne feed facility and assist with potential future acquisitions
“While there are still challenges with cost inflation and supply chain pressures, sector sentiment remains strong, and the fundraising proceeds will enable us to accelerate growth plans.”
Haydale
Advanced material group, Haydale Graphene, has successfully raised £5m through the placing of new shares.
The Ammanford-based firm, which is listed on the Alternative Investment Market, issued 250 million share at 2p.
The graphene technology firm said the proceeds from the fund raising will support working capital needs.
The company said it is “very likely” it will need to raise additional funding in the future.
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