The Top Welsh Startup Constituencies
As shown in our new report, the Welsh tech sector surpassed expectations in 2023. While UK-wide trends showed a dip in investment, Wales saw a 8.7% increase from 2022. Welsh tech continues to punch above its weight in key areas including compound semiconductors, cyber security, fintech, manufacturing, life sciences, renewables, and creative industries.
The Welsh tech sector contributes around £8.5bn to the economy every year. And the sector is continuing to grow–according to government data, the number of tech enterprises in Wales has grown by 20% over the past five years.
In terms of constituencies, Cardiff South and Penarth Hosts 91 startups/scaleups with £376m in total funds raised. Swansea West and Swansea East constituencies boasting a combined 68 startups raising £107.1m. First constituencies in N Wales are a tie for no 10 – Alyn and Deeside near the English border and Ynys Môn, Wales’s hub for agritech and renewable energy on the Isle of Anglesey.
Despite these successes, Welsh tech startups face challenges common to many emerging ecosystems. Access to finance remains a concern. The Development Bank of Wales plays a dominant role in the funding landscape, which is both a blessing and a curse for Welsh startups. While they have strong government support, many Welsh founders felt that they needed to travel to London for access to VC funding. Additionally, Wales’ fragmented transport infrastructure poses logistical challenges for founders, and disruptions and delays are a recurring problem. Other issues include access to talent and spinouts getting a fair deal from universities.