The deals keep turning despite Covid-19
Here we feature the latest equity deals, and a new fund, to help Welsh businesses expand and create new jobs...
Project Blu
DINAS Powys-based eco pet product firm Project Blu has secured another significant investment round boost as it focuses on further expansion globally. The company, which recycles fishing nets and plastic bottles to make a range of pet products such as beds and leads, has secured investment and strategic backing from leading US manufacturer and distributor Central Garden & Pet Company (Central). The partnership will support the company’s mission to drive sustainable change across the global pet industry. Central had sales of $2.7bn and operates multiple distribution centres strategically placed across the United States. The partnership will see Central offer Project Blu eco-friendly products to its extensive list of US physical and online retailers.
Project Blu is the first global pet brand to offer a full range of sustainable accessories, including beds, collars and leads. The company’s original mission was to reduce global oceanbound plastic waste by converting it into sustainable fabric designs.
As the business has grown, it has established itself as a global leader in tackling the pet industry’s wider environmental issues. These include reducing carbon emissions and water waste in addition to developing a circular lifecycle for pet products.
Since being launched in 2019 it has sold more than 200,000 premium pet products across the globe and has converted more than 12 million plastic bottles into sustainable designs. The core product range includes pet beds, collars, leads and “plastic” style products made from recycled fishing nets.
Project Blu founder and chief executive Geryn Evans said: “Most pet owners do not realise that polyester is an oil-based plastic and the manufacturing comes with extremely high levels of carbon emissions and water waste. By swapping to sustainable alternatives, we can reduce carbon emissions by up to 85% and water waste by 75%. To put this into perspective, if every pet owner in the UK decided to swap their traditional dog beds to a sustainable alternative, it could save over 175,000 tons of CO₂ and the equivalent of over 300 million bathtubs of water every year.
“It would also save over 30,000 barrels of crude oil. This highlights the significant difference that can be achieved by raising awareness and making small changes to our daily activities.”
Jon Balousek, president of corporate development at Central, said: “Central Garden & Pet strives to partner with industry-leading companies of tomorrow, and we are thrilled to be working with Project Blu, a company dedicated to designing and manufacturing premium durable pet accessories while also preserving and caring for the environment. At Central, we are committed to creating a sustainable future for all, and we look forward to working closely with Project Blu to make a difference.”
The value of Central’s investment has not been disclosed.
Project Blu has been assisted by the Business Wales Accelerated Growth Programme (AGP), which provides targeted support for ambitious growing firms. The programme is partfunded by the European Regional Development Fund through the Welsh Government.
Richard Morris of the Excelerator Consortium, which delivers the Business Wales Accelerated Growth Programme, said: “This is a great example of an ambitious Welsh business seeing the tremendous growth opportunity in sustainable products.
“Project Blu has developed a fantastic range of products that reduce energy consumption and greenhouse gas emissions as well as water consumption.
“Their work to scale their product globally and bring the benefits to pet owners and the planet is something we can be proud of in Wales. Geryn and his team are highly talented and hardworking, and we are delighted to support them with our experienced advisors. We hope their success will inspire other businesses to work with us on the great opportunities for products that help the planet.”
Equity conference
AN ONLINE conference on the impact of equity funding on the Welsh economy will be held tomorrow.
In partnership with Business Wales and British Business Bank, the Development
Bank of Wales will be holding the free live-streamed Expanding Horizons with Equity Live event.
The event will see an opening address from Minister for Economy Vaughan Gething and is being hosted by Welsh journalist, broadcaster, writer and former BBC Wales Today presenter Jamie Owen.
Involving spotlight speakers, panel discussions and opportunities to network, the equity-focused event will cover areas such as fundraising, business succession, how to find the right investor fit and the impact non-executive directors (NEDS) can have on your board.
The panel headlining the event includes ex-dragon’s Den investor Piers Linney and Bafta Cymru winning broadcaster Lowri Morgan.
Other speakers will include Frank Holmes (founder partner of Gambit Corporate Finance), Jenny Tooth (UK Business Angels Association chief executive), Sherry Coutu CBE (serial entrepreneur and angel investor) and Rodney Appiah (former investment banker and venture capital investor).
Welsh business owners will also be joining the event to share their real-life experience of equity and how it has helped shaped their business’s growth – including chief executive of Health & Her Kate Bache and Steve Lanigan, chief executive of ALS People.
New business director for the Development Bank of Wales Bethan Cousins said: “Businesses across Wales are trying to bounce back after the pandemic, and the changing business environment is offering up many new avenues for growth for businesses to tap into.
“Equity funding in particular is becoming an increasingly important solution for Welsh businesses in 2021.
“We’ve created this event to help educate business owners about how equity can make a difference and support them on their business’ journey. Equity finance can help business owners grow their company, as well as tech start-ups looking for investment, and those who are looking to buy or sell a business.
“The Development Bank is committed to unlocking potential in the economy of Wales by increasing the provision of sustainable, effective finance in the market.”
To book a space at the event visit www.equity.wales
British Business Bank
WALES is getting a £130m fund to back the growth prospects of Welsh firms, Chancellor Rishi Sunak confirmed in his Budget last week.
The funding will be assigned to the UK Government’s economic development bank, the British Business Bank.
As with its other regional investment funds in England, the bank will outsource its fund management through a competitive bidding process. This throws up the potential for an appointed fund manager bolstering the £130m by sourcing additional private investor backing.
The British Business Bank said it was too early to say when the fund could become operational. Any split between debt and equity will be demand led.
The Chancellor also confirmed the British Business Bank will receive a further £150m to invest alongside angel investors – including in Wales.
It is not clear whether the Welsh Government’s whollyowned investment bank, the Development Bank of Wales, would look to bid for the fund manager contract for the £130m Welsh fund, or whether as a publicly-funded lender itself it could run another publicly-funded fund. However, it said: “We welcome the Budget announcement of £130m for the British Business Bank to set up a fund for Wales, a commitment which recognises the vital role of small businesses in the Welsh economy. We look forward to further details of the fund in due course, and to continuing to work together to ensure that SMES can access the funding they need.”
The development bank can currently invest up to £10m per investment. If it doesn’t run the new fund it could look to investment alongside the British Business Bank into Welsh firms.
Welcoming a specific fund for Wales, the Rhondda-born chief executive of the British Business Bank, Catherine Lewis La Torre, said: “The package announced by the Chancellor enables us to build on our range of programmes to support sustainable economic growth by increasing the supply, diversity and demand for finance for UK smaller businesses.
“This includes delivering a new £130m fund dedicated to supporting smaller businesses in Wales. We look forward to working with the Development Bank of Wales and local stakeholders to deliver this increased support. We also welcome the £150m provided to support regional angel finance across the UK, and resources to provide 33,000 Start-up Loans over the next three years.”
Finboot
Cardiff-based blockchain technology firm Finboot has been boosted with a new equity investment from the US to support its growth plans.
Supply Chain Ventures has backed the firm that has developed MARCO – an ecosystem which brings together blockchain technologies in one place, connecting multiple ledgers simultaneously. It enables companies to incorporate blockchain within their value and supply chains.
The backing of Supply Chain Ventures, the value of which hasn’t been disclosed, follows on from £2.6m equity round earlier this year, which was led by the Development Bank of
Wales, energy company Repsol and New Look Founder, Tom Singh.
Nish Kotecha, founder and chairman of Finboot, said: “This is a really important strategic play for Finboot. The leadership of Supply Chain Ventures has unparalleled expertise and knowledge within supply chains globally, while we bring the next generation technology which enables companies to manage their supply chains through blockchain.
“This really is the present for those companies – many of which are our customers – which are the early adopters in this space.
“For others it is very much the future and we look forward to unlocking this potential together with Supply Chain Ventures.”
Supply Chain Ventures was founded by David Anderson, who was previously managing partner of supply chain consulting at Accenture, where he was instrumental in building its $2 billion supply chain management practice.
Mark Doiron, general partner at Supply Chain Ventures, is also personally investing in Finboot. He has extensive experience in the US retail grocery environment.
Based in Massachusetts the firm has an extensive portfolio of investments in the supply chain sector.
David Anderson, managing general partner of Supply Chain Ventures, said: “The Finboot team has developed a world class ecosystem in terms of MARCO and is setting the benchmark in terms of supply chain management utilising blockchain. Supply Chain Ventures is investing in Finboot, but it also reflects our vision for a deep strategic partnership.”
Finboot also has an office in Spain.