Welsh investors back X4 as Sourcemogul storms the US

Caerphilly based X4 Software Limited has secured follow-on investment of £175,000 from the Development Bank of Wales and the backing of business angel investors.

X4 Software trades as SourceMogul. Introduced by Angels Invest Wales, David James is the latest investor to support the business. He previously led Hudman Solutions, an award winning software development business, through two funding rounds as an investor and Managing Director before successfully selling to Advanced in 2017.

SourceMogul’s software analyses over 20 million products globally each month to enable online arbitrage professionals to make smart, customised buying decisions. It automates the search for products across online retailers and wholesale providers, filtering and presenting products according to customer specifications, with built in features such as an ROI calculator and estimated sales per month.

Operating from Welsh Ice in Caerphilly, SourceMogul was awarded ‘Global Start-Up of the Year’ at the Wales Start-Up Awards in 2016 sponsored by Natwest. The company has a team of six with a further two new recruits expected to join shortly.

Founder Ed Brooks said: “SourceMogul is suitable for everyone, from experienced traders to those who are completely new to online arbitrage, and is aimed at UK and US households looking for new income streams. It suits those with an entrepreneurial appetite and time and a relatively small amount of money to invest in a new business.

Automating and simplifying the process of sourcing products saves our customers hours, compared to scouring physical or online stores. In fact, Covid-19 has led to a significant increase in demand for the digital platform in the US and UK as the easy-to-use software appeals to users particularly at this time when people are looking for new sources of income online.

“The continued support of the Development Bank of Wales alongside our angel investors means that we’ve got a winning combination of working capital and expertise to guide us with our strategic development as demand for SourceMogul continues to increase.”

Investor David James said: “X4 has got a really exciting product that enables users to quickly and easily identify trends, gaps, price fluctuations and seize opportunities that might otherwise pass.

“The global potential is huge and I’ve got every confidence that the combined experience and ambition of the team means that this is a company with a really exciting future. I’m really grateful to Angels Invest Wales for making the introduction as this is a fantastic opportunity to get involved and be part of the journey.”

The Development Bank of Wales made an initial investment of £100,000 in 2017. Alexander Leigh of the Development Bank of Wales said: “Our investment to date now totals £425,000. This has helped to fund the development of SourceMogul and launch global marketing campaigns.

“The support of the angel investors is testament to the huge potential of this technology and their belief in Ed’s ability to quickly scale this innovative digital platform globally despite the economic uncertainty at this time. The investors are highly respected with technology expertise. They offer a perfect fit with the SourceMogul team and David’s experience of leading such a successful exit for Hudman will be of real benefit.”

Established in 2017, Angels Invest Wales (AIW) is Wales leading angel investment network and an integral part of Development Bank of Wales. AIW has over 190 registered Business Angels in a wide ranging network that seeks to provide private investment for growing and start-up businesses in Wales.



Notes to Editors


For more information about the Development Bank of Wales, please contact:

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About the Development Bank of Wales

  • The Development Bank of Wales was set up by the Welsh Government to support the economy of Wales by making it easier for businesses to get the finance needed to start up, strengthen and grow. The purpose of the Development Bank is to unlock potential in the economy of Wales by increasing the provision of sustainable, effective finance in the market.
  • Launched in October 2017 it is a cornerstone organisation for delivery of public sector financial products, supporting micro to medium businesses in Wales and increasing the supply of finance. It promotes economic development through an adaptable delivery model that is responsive to market needs whilst providing continued value for money for public funds. It delivers key Welsh Government policy objectives measured through performance targets and providing investment management and support services across the whole of Welsh Government.
  • The Development Bank of Wales invested £80m across 420 investments in the financial year 18/19 which in turn attracted £126m in private sector investment.


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Development Bank of Wales Plc (Banc Datblygu Cymru ccc) is the holding company of a Group that trades as Development Bank of Wales. The Group is made up of a number of subsidiaries which are registered with names including the initials DBW. Development Bank of Wales Plc is a development finance company wholly owned by the Welsh Ministers and it is neither authorised nor regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). The Development Bank of Wales has three subsidiaries which are authorised and regulated by the FCA. Please note that neither the Development Bank of Wales Plc nor any of its subsidiaries are banking institutions or operate as such. This means that none of the group entities are able to accept deposits from the public. A complete legal structure chart for Development Bank of Wales Plc can be found at www.developmentbank.wales.