Here we feature the latest equity deals in Welsh business and firms using previous funding rounds to expand.
A fitness app venture, part owned by Welsh rugby internationals Gareth Anscombe and Alex Cuthbert, has been boosted after raising more than £200,000 in crowdfunding to back expansion plans.
Alongside business partner and entrepreneur Dean Jones their business AGD Enterprises, has developed a search platform – Fitap- connecting gym owners, personal trainers, sports clubs and health and fitness providers with consumers at the touch of a button.
The business had a soft launch prior to the pandemic, but is now looking to accelerate its growth on its funding boost.
Mr Cuthbert, who as well as being a Welsh international plays for the Ospreys, said: At present there is no one-specific place for people to explore their health and fitness options, so the app will fill that void.
“Everybody is different and that includes where they are on their health and exercise journey, so this will give them an easy-to-use alternative to scouring the internet in the hope of finding something suitable.
“We are passionate about helping others to be fit, happy and healthy, so it’s brilliant to be able to relaunch Fitap to the market.”
Mr Anscombe, who also plays for the Ospreys, said: “As well as physical health the mental health of consumers is hugely important to us – particularly in light of the Covid-19 pandemic and self-isolation – so we have a free section where organisations can promote and share their mental health awareness information and activities.
“The app will support users with a bespoke end-to-end experience and give fitness providers a platform to connect directly with them, so they can advertise discounts and offers, and help bring the health and fitness arena to a modern, tech-savvy audience. Fitness classes offered vary from gym classes and tennis lessons to white water rafting and kids summer rugby camps, both online and offline – the range is vast and inclusive.
On the funding raising Mr Jones said: “We are excited to share more with people in the coming months as this is a game-changer for the industry and are thankful to those who have supported us on this journey since our soft launch in 2020, notably the well-known businesses and sporting stars who got behind our successful fundraise recently, raising over £200,000.”
Following the funding the three directors maintain an equal split in a combined majority stake in the business.
Bond Digital Health
MEDETCH venture Bond Digital Health has launched a crowdfunding campaign to complete a £1.5m funding round.
The Cardiff-based company has already secured £1.3m in the round, with £420,000 from the Development Bank of Wales and the remainder through the investment service Wealth Club. It is now offering individuals the opportunity to invest through the Seedrs equity crowdfunding platform.
Bond’s chief executive, Ian Smith said: “We’ve already enjoyed great support from current shareholders in securing £1.3m of our £1.5m funding round.
“We are delighted to now launch a Seedrs campaign to raise the allocation reserved for individual investors.
“This is an exciting opportunity to invest in the continued success of Bond Digital Health and to become part of our mission to make healthcare better with data.
“We believe digitised point-of-care diagnostics have the power to transform healthcare, making it more accessible across the world. Now, individual investors can help us make it happen by becoming part of our shareholder community.”
In 2020, Bond received almost £2m in equity funding and more than £200,000 in UK and Welsh Government grants, which allowed it to expand its development team and bring its key product, Transform, to market. Transform is a data capture and management platform for lateral flow and other point-of-care diagnostic tests.
Alcumus
Cardiff-based market leader in risk management solutions. Alcumus, has secured an investment boost from Inflexion.
The investment is being made through Inflexion’s dedicated minority investment fund, Partnership Capital II.
Alcumus provides a range of health and safety accreditation and software solutions which help to manage risk across enterprise customers’ sites, employee bases and third-party contractors.
Inflexion backed the firm in late 2015 and supported the management team to build a scalable platform. Within nine weeks of the initial buyout, Alcumus completed the £47m acquisition of Santia, which significantly broadened its footprint in the accreditation sector. Subsequent strategic acquisitions in Canada, New Zealand and the UK enhanced Alcumus’ offering and international presence further, including establishing a foothold in the key North American market.
These acquisitions were complemented by strong organic growth and a focus on enhancing the digital offering, which together transformed the business into a global software-based risk management solutions provider.
Following a successful six-year partnership, Alcumus was sold to funds advised by Apax Partners in February.
Given Alcumus’ strong market position, proven management team and international growth opportunity, Inflexion is re-investing in the business.
Commenting on the re-investment, Simon Turner, managing partner at Inflexion said, “Our recent investment in Alcumus gives us great conviction in the business’s long-term potential driven by its ambitious management team and growing global demand. We are delighted to continue supporting the business achieve its growth ambitions.”
Alyn Franklin, chief executive of Alcumus, said:, “The solutions Alcumus provide are trusted around the world, from our expanding member base of SMEs through to some of the most prominent, international enterprise brands. Our past work with Inflexion was extremely successful and we look forward to continuing to work together to accelerate the growth of Alcumus.”
1st Choice Accident Repair
Accident repair firm 1st Choice Accident Repair aims to create up to 20 new jobs as the business doubles in size having acquired new premises in Cardiff.
A £975,000 loan from the Development Bank of Wales is being used to part-fund the move from Ipswich Road to a larger 30,204 sq ft unit on the same road that was previously occupied by Sytner.
All 31 staff will transfer to the new site this month with up to 20 new jobs expected to be created across the business including the recruitment of paint and panelling technicians. The extra space will allow for the expansion of services including wheel repairs, tyres, fleet maintenance and vehicle servicing alongside improved storage facilities. Opportunities to provide electric vehicle charging and battery storage are also being considered.
1st Choice Accident Repair Centre was established in 2002 as a purpose-built accident repair workshop. Directors Mike Summers, Calum Young and Sion Coughlin purchased the business in 2018 after the Development Bank part-financed a management buy-out with a £1.1m equity investment. Mervyn Ham of Iridium took an equity stake and the role of chair.
The company is an approved repairer for most leading major insurance providers and offers comprehensive accident management, 24-hour recovery, claims management and courtesy vehicles.
Director Mr Summers said: “Our long-term business strategy is based on adding value for our customers and shareholders so it’s important that we continue to invest in our property and processes to improve operational efficiency and expand our offering.
“As our equity partners, the Development Bank has continued to support us with our strategic growth while we have adapted to the challenges of owning a business and weathered the storm of Covid-19. With life now returning to normal and traffic getting back on our roads, we are seeing increasing demand for our services and have therefore been running at maximum capacity for some time. This move will give us the space to grow and develop a fantastic facility that will benefit customers and colleagues alike.”
Mr Ham said: “1st Choice is no longer just a car body repair shop. The team has done exceptionally well; coming up from the shop floor and grasping the opportunity to drive the business forward even through periods of uncertainty.
“This strategically important investment now allows us to take the business to the next stage; creating real flow and therefore improving efficiency together with giving us the space to expand our services and expand our portfolio of insurance providers. Importantly, we’ll have the facilities to provide first-rate training for our existing staff and new recruits so we can develop skills and take advantage of the growing electric vehicle market.”
Mark Halliday of the Development Bank of Wales added: “This is a great example of how we work with our equity portfolio customers to help drive growth and long-term value for all. The new site is nearly twice the size of the current workshop and offers a much better layout that will enable the business to increase through-put and efficiency.
“1st Choice is an excellent company that has delivered consistently against target; using our initial equity capital to create the headroom for expansion and deliver on their longer-term strategic plan. The team is doing really well by growing the business to its full potential and are now looking to the next phase of growth; creating jobs and diversifying to strengthen the business for the future.”
Reel Labels Solutions
Pontyclun-based printing specialist has secured a six figure investment to fund a shareholder buy-out and secure capital expenditure for future growth.
Reel Label Solutions secured £1.2m investment, which is a mixture of debt and equity, from the Development Bank of Wales.
Jonathan Wright, co-founder and newly appointed managing director, will become the majority shareholder in the business following the exit of fellow co-founders Paul Prothero and partial exit of Chris Duffin.
As specialist printers in the pharmaceutical sector, Reel Label Solutions had been offered a trade sale but wanted to pursue a shareholder buy-out instead to avoid any potential relocation from South Wales.
Mr Wright, Mr Prothero and Mr Duffin first established the business in 2002 specialising in high-quality digital labels, particularly short-run production of digital adhesive labels and flexographic label printing.
The firm now employs 27 staff at its unit on Cambrian Industrial Estate. It is on target to achieve a turnover of £3.5m this year.
