As this column has stated on many occasions, access to equity investment is a crucial engine for business growth, innovation, and economic development. For many start-ups and scaling businesses, securing external finance is often the difference between success and stagnation.

Unfortunately, a recent study has suggested that in Wales, the flow of investment has been dwindling, raising significant concerns about the long-term health of the business ecosystem. Despite strong entrepreneurial ambition, particularly in innovation-driven sectors, access to funding remains a persistent challenge.

The latest Small Business Finance Markets Report from the British Business Bank confirms what many in the Welsh business community have known for a long time namely that equity investment in Wales is on the decline. It shows that over the first three quarters of 2024, the number of equity deals in Wales fell by 14%, while the total value of investment plummeted by 46%.

This decline is sharper than what has been observed in many other parts of the UK, where investment values have increased in some regions despite fewer deals being completed.

Indeed, half of the UK’s nations and regions actually experienced an increase in investment values. London, the East Midlands, North East England, Scotland, the East of England, and North West England all attracted more funding,........

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