Innovation Investment Capital announces first investment into Amplyfi

Innovation Investment Capital Limited Partnership (‘IIC’), the Cardiff Capital Region (‘CCR’) backed fund, today announces its first investment, which is into AMPLYFI, the Cardiff-based disruptive generative artificial intelligence business.

The investment in AMPLYFI comes off the back of huge global investment in generative AI and emphasises the opportunity in this space. Over eight years, AMPLYFI has built a market-leading AI-powered market intelligence platform to help global clients better identify and react to market changes. Their proprietary platform monitors and analyses vast amounts of written content from the web, summarising key developments and generating unique insights, enabling users to uncover trends, opportunities and exposing previously hidden links. This investment aims to enable the company to leverage Generative AI to further streamline research and analysis, in addition to expanding the team in Wales to ensure it can continue to deliver market leading products and services to a global customer base.

IIC’s decision to invest was based on several key factors, including:

• A strong management team that has built an advanced market intelligence technology platform.
• An exciting and rapidly growing market segment that is increasingly looking for technology solutions.
• Ambitious growth plans with their pipeline of blue-chip customers and product development.
• The ability of CCR and IIC to support and add value to the business to accelerate growth.

IIC launched in November 2022 with an initial £50 million from CCR and a mandate to invest long-term capital in sustainable growth opportunities across the ten unitary authorities that comprise the CCR. The fund’s General Partner is Capricorn Fund Managers (CFM), which is responsible for managing the fund and the overall portfolio and risk management, with PwC supporting CFM in advisory matters, including investment research and sourcing.

Since its launch, IIC has received over 140 applications for funding from potential investee companies around South East Wales, from Bridgend to Chepstow. While MedTech and FinTech have been the predominant sectors to have approached the fund, there have also been applications from consumer, energy and environment, construction and artificial intelligence companies, among others. Further investments are expected in the coming months, which will help to catalyse regional growth through new employment opportunities and accelerated economic development.

“Our mission at CCR is to re-energise the whole South East Wales region,” said Rhys Thomas, Chief Operating Officer of CCR. “The AMPLYFI investment aligns with this mandate of backing innovative businesses in many different sectors, encouraging the new jobs and good growth that lies at the heart of our Regional Economic & Industrial Plan. We expect further IIC investments very soon, far beyond just the technology sector and the city of Cardiff. These are exciting times.”

Paul Teather, AMPLYFI CEO, added:  “We are thrilled with this new investment, which will allow us to continue expanding AMPLYFI operations in Wales and develop our leading global AI-powered market intelligence platform. We are excited that IIC is attracted to AMPLYFI and we look forward to expanding our team and putting our technology in the hands of many more users.”

Rob Asplin, PwC Partner, said: “As we supported CFM, what stood out throughout our discussions and process with AMPLYFI was the strength of the management team, the rapidly growing generative AI market and AMPLYFI’s existing blue-chip customer base. We look forward to seeing many more potential investee companies approach the fund in the near future.”

“What has been evident throughout this process has been the extraordinary number of high quality-SMEs across the region,” Lynda Stoelker, Capricorn Fund Managers COO and Chair of the IIC Investment Committee, concluded. “We are in a great position, with a healthy pipeline of potential investments in different sectors. AMPLYFI, as IIC’s first investment, sets a very high bar and we are delighted to be a part of their journey.”

Legal, financial, tax and tech advice was provided with legal from Harrison Clark Rickerbys, financial from Barford Owen Davies, tax from Bishop Fleming and tech from Squirrel Squared, respectively.