The rapidly growing tech sector has been a catalyst for the growing start-up scene in Cardiff

Cardiff’s vibrant and rapidly growing tech sector, particularly fintech, supported by university-led incubators has fostered a world class start-up culture.

Wales has led the way with financial disrupters as far back as 1995, with homegrown Admiral establishing the UK’s first price comparison website, Confused.com, cementing Cardiff’s place as Europe’s centre for online insurance aggregators. More recently, Monzo Bank’s original decision to move into Cardiff in 2017 put the city on the map as a potential fintech hub, and Starling Bank’s decision to follow Monzo indicated that a new wave of fintech firms were moving into Cardiff, presenting new and exciting prospects for the city.

These employment opportunities have been attracting young professionals, as well as retaining those graduating from the city’s universities. Comparatively affordable homes have helped them settle down in the city.

As the table below shows, Cardiff has a greater number of start-ups opening compared with closing than anywhere else in the UK.

In fact, Cardiff is home to one of the fastest-growing digital clusters in the UK, with the Welsh tech sector worth an estimated £8.2 billion and employing almost 40,000 people. The fintech sector has made up almost a quarter of the £144 million (over 87 deals) in venture capital raised since the beginning of 2020, driven by growth of the financial and professional sector in Wales.

Up and coming Cardiff-based fintech companies include Wealthify, an online investment service, Bipsync, research management software for investors, and Delio, an investment platform which connects a financial institution’s high net worth clients with private investment opportunities.

Delio has secured an additional £6.1 million in growth funding to cement its position on the international wealth tech scene and expand its offering. The latest backing of the Welsh fintech comes from Octopus Ventures, one of the most active venture capital investors across Europe. Cardiff also has one future unicorn (futurecorn) – defined as a high-growth tech company predicted to be worth US$1 billion in valuation in the next few years – in the form of fintech platform.

To accommodate these start-ups and scale-ups, communities such as Tramshed Tech, the fastest growing business incubator in Wales, provides a good opportunity. Tramshed Tech’s original HQ in Grangetown, consists of 25,000 sq ft of co-working and office space in a Grade II-listed former tram depot. Recently, Tramshed and Hodge Bank have partnered to power a new tech and innovation hub in One Central Square in the heart of the city’s business district.

This attractive environment is reflective in the impact the tech sector is having on the office market more broadly. Tech was the most active sector at the end of Q3, accounting for 37 per cent of total take-up to date this year and also in terms of deal count with 14 deals completed. This shows the huge potential for landlords if they can provide suitable and attractive space for start-ups to occupy, and help to nurture and grow these businesses.

Universities also play an important role, through financing incubators to supporting start-ups ensuring survival and growth. Cardiff University’s £300m innovation campus sbarc|spark aims to encourage out-of-the-ordinary creative thinking and the exploration of new possibilities.

The centre will bring together 13 social science research groups collectively known as SPARK – the world’s first Social Science Research Park – alongside Cardiff Innovations@sbarc, a hub for innovation, start-ups and spinouts. It features collaborative working spaces, a visualisation centre, auditorium and fabrication lab.

It is this collaboration with educational institutions and the development of innovation hubs that is so vital and provides the seedbed in which Wales can nurture and grow tomorrow’s big ideas.