Thought Leadership written by James Smith – Technology Leadership Council Member and CEO of Critical Cloud.
It still catches people off guard when I say I’m building a tech company in Wales. The assumption is always: “Why not London? Why not somewhere bigger?” But the truth is, Wales has everything I needed and more.
The Welsh tech ecosystem in 2025 is more than a “hidden gem.” It’s a smart move for founders and investors looking to build something meaningful, efficiently, and with serious community support.
Here’s what I’ve learned building here, and why I believe the biggest tech opportunities are increasingly coming from Wales, not just to it:
What makes Wales a smart place to build?
- Cost-effective operations. Hiring, office space and general startup costs go a lot further here. You can scale without setting fire to your burn rate.
- Funding is here, if your vision’s strong. From seed rounds backed by local angels, to follow-on support from regional-focused and UK-wide VCs and PE firms keeping an eye on the Wales, the money exists. The ambition just needs to match it.
- Top-tier talent, without the talent war. Cardiff, Swansea, Bangor, and beyond. Welsh universities are producing brilliant grads in cloud, AI, dev, and cyber. And you’re not in a constant bidding war like in London.
- Better lifestyle and work-life balance Shorter commutes, access to green spaces, and a more affordable cost of living mean founders and teams can build fast without burning out. The quality of life in cities like Cardiff is a serious asset for attracting and retaining talent.
- Real support from real people. Whether it’s Tramshed Tech, Llywodraeth Cymru / Welsh Government or other local partners, there’s a tight-knit network of organisations that want you to succeed, and will actually help.
It’s no surprise then that Cardiff ranks No.1 in the UK for starting a business in 2025, thanks to its affordability, high graduate retention rate, and thriving support ecosystem. It’s big enough to scale, but small enough that the tech community actually knows and helps each other.
Opportunities in Wales’ Tech Ecosystem
Wales isn’t just growing, it’s transforming. The following sectors represent the biggest current and emerging opportunities for founders and investors alike:
Fintech & Financial Infrastructure
For sometime, Cardiff has been a fintech hub, supported by FinTech Wales , which is actively helping new ventures launch, scale, and collaborate. From payments and insurtech to regtech and lending platforms, we’re seeing startups gaining traction locally while serving customers globally.
Investors are already paying attention and the next wave of fintech founders is coming out of large enterprises and ex-scaleup operators.
Cybersecurity & Compliance
With high-quality talent pipelines from institutions like the University of South Wales National Cyber Security Academy, and growing public sector interest, Wales is becoming a hotspot for cyber innovation.
You’ve got startups, scaleups, and anchor firms building secure infrastructure and tools, especially in regulated industries like defence, financial services, and healthcare.
Semiconductors & Advanced Manufacturing
Wales has deep roots in electronics manufacturing and semiconductors are seeing a resurgence. The Compound Semiconductor Cluster in South Wales is one of the most significant in the UK, anchored by CSconnected, IQE , and the Compound Semiconductor Applications (CSA) Catapult in Newport.
This is more than a niche play, it’s part of a national strategy for supply chain resilience and advanced tech manufacturing, with active public and private investment.
AI & Automation (Early-Stage, High Potential)
AI in Wales is still early-stage, but it’s emerging fast. There is real movement in areas like healthtech AI, AIOps, and workflow automation, especially with support from R&D grants, and accelerator programs.
The groundwork is being laid. The upside is real, but still forming.
A Community That Shows Up
Wales isn’t just a place to build, it’s a place to belong. The tech community here is collaborative, ambitious, and increasingly well-connected:
- Wales Tech Week (November 2025) Now a flagship national event, Wales Tech Week brings startups, scaleups, investors, and public sector leaders together for three days of real conversations, partnerships, and innovation.
- Wales Week / London (February 2025) A platform for Welsh businesses to showcase their work to UK-wide and international audiences, connecting founders, diaspora, and investors in the heart of London.
- GlobalWelsh A global diaspora network that’s genuinely impactful and helping Welsh founders access international connections, mentors, and capital. It’s one of the most founder-friendly diaspora initiatives anywhere.
- FinTech Wales Driving the growth of Wales’ fintech sector through community-building, skills programmes, and founder support. It plays a critical role in bridging industry, government, and academia.
- Local Meetups & Ecosystem Events From Cardiff to Swansea to Wrexham, the grassroots scene is growing fast, covering everything from AI and cloud to sustainability and startup scaling.
The bottom line?
I built my first high-growth tech company here. I’m building my second here. And I genuinely believe Wales is one of the best places in the UK to start, grow, and scale a tech business.
If you’re a founder looking for room to build, or an investor looking for your next breakout, it’s time to look West.
Wales has always punched above its weight. In tech, it’s about to make that punch count.
The post Why I Chose to Build in Wales and Why It Works for Tech appeared first on Technology Connected.