Belfast and Cardiff compared, using Invest NI and the Development Bank of Wales

What to take away

Two public bodies, two mandates

Belfast and Cardiff are similar in size and both sit outside the English funding mainstream. The comparison stops there.

Invest NI is a regional development agency with its own grant budgets, innovation programmes and investor networks. The Development Bank of Wales is owned by the Welsh Government and behaves more like an investor than a grant office.

Cardiff's angel base is small but active, and syndicates often co-invest with the bank. Belfast's relies more on public money.

The British Business Bank sits behind several devolved programmes and co-invests with national bodies.

Invest NI funding for start-ups and innovation

Invest NI splits its early-stage offer in two. General start-up support covers advice, business planning and mentoring, and suits pre-revenue founders.

Innovation-driven start-up support is project-based and named. For tech founders, Invest NI runs the Founder Labs accelerator, six months of mentoring, global study visits and investor pitching, and an 8-week Founder Labs Pre-Accelerator. The Business Innovation Grant (BIG) supports sole traders, micro-businesses and SMEs bringing innovation activities to market.

Project money sits on a ladder. Invest NI's funding for innovation and R&D page lists an Innovation Voucher of £10,000 to buy specialist knowledge from universities, colleges and research organisations in Northern Ireland and the Republic of Ireland, a Technical Development Incentive of up to £15,000 towards technical service providers, and Project Definition support of up to £100,000 to investigate an idea, build and test a prototype and handle intellectual property costs. The follow-on Grant for Research & Development is only available to Invest Northern Ireland clients who have discussed the project with an Invest NI representative. Innovation Vouchers are paid to the knowledge provider, not to the business, and run in timed application calls.

Grants and financial support are indexed through one funding hub, the sensible first stop. Treat eligibility as a hard gate before spending weeks on a submission, because most rejections land on residency, sector or stage.

Development Bank of Wales equity, loans and grants

The bank runs equity funds for different stages, from seed to later growth, and often co-invests with private angels. It also offers business loans and start-up loans, which avoid dilution for companies with predictable revenue.

The Welsh Government's Business Wales guide to the Development Bank gives the published ranges: the bank can invest from £1,000 to £5 million at a time, with micro loans from £1,000 to £50,000 for start-up growth funding, loans from £1,000 to £10 million and equity investment from £50,000 to £10 million, plus seed finance for pre-revenue tech start-ups. Repayment terms generally range from 1 to 10 years, and interest rates are based on the business's individual circumstances and fixed for the term of the loan. Applicants need a 2-year business plan for up to £50,000 and a plan of up to 3 years above that, submitted through an online application form.

It delivers the British Business Bank's Start Up Loans in Wales and manages the Wales Angel Co-Investment Fund, which backs angel-led deals. That angel money often stacks with the Enterprise Investment Scheme.

Grant-linked products are narrower and tied to Welsh Government priorities such as job creation.

Eligibility, sector focus and dilution compared

The table sets out where the two bodies differ.

The Development Bank can only help businesses based in Wales or willing to relocate. Invest NI's vouchers are open to small and medium-sized enterprises, social enterprises and third sector organisations in Northern Ireland. Ticket sizes within those ranges move with the fund and the co-investor, so confirm the current call or limit with each body. Both prefer to follow private money rather than lead.

The grants, Start Up Loans and equity comparison weighs routes on the same downside assumptions.

Example: one grant, one equity round

The figures below are illustrative, not quoted rates.

A Belfast software company with two founders and no revenue applies to Invest NI for a feasibility grant of about £20,000. It keeps all of its equity and spends three months applying.

A Cardiff medtech company with £150,000 of revenue applies to the Development Bank of Wales for a £250,000 equity round. It gives up a minority stake and closes in roughly three months.

Same stage on paper, different outcomes.

Dual market access and cross-border rules

Under the Windsor Framework arrangements, goods made in Northern Ireland can move into Great Britain and the EU with fewer checks than goods moving from Great Britain into the EU.

It can support a higher valuation where EU customers buy goods, but rarely changes an investor's view of a software business. Investors ask where your customers are, not where your office is.

Cardiff founders face the same EU export checks as English firms.

Checklist before you apply

The England market guide shows how grants, loans and EIS-backed rounds fit together. The government finance hub lists national schemes behind both regional bodies.

Common questions

Can a Cardiff company apply to Invest NI?

No. Support requires a Northern Ireland trading presence, not just a registered address.

Does the Development Bank of Wales take equity in Belfast companies?

No. The bank can only help businesses based in Wales or willing to relocate, so a Belfast company would need a substantive Welsh operation.

Are Invest NI grants non-dilutive?

Mostly yes. Standard grant and innovation support routes do not take equity, which is why they are competitive.

How long does each route take?

Invest NI grants can run for several months from application to decision. The Welsh bank moves faster for companies that arrive investment-ready.