AI risk management software secures £900k funding

By Nicky Godding

27 March 2024

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Lexverify co-founders - Nilansh Khurana (left), Chief Data Science Officer, and CEO Dr Cristian Gherhes

Lexverify, an AI-powered risk management assistant, has raised £900,000 in seed round funding. The investment was led by Midven, part of the Future Planet Capital Group. £550,000 is from the Midlands Engine Investment Fund (MEIF 1) through the MEIF West Midlands Equity Fund, alongside £350,000 from Raspberry Ventures, The LegalTech Fund, and angel investors, including Richard Yorke, Mark Watkin Jones, Jonathan Scudder, Richard Grethe, and Karl Wyborn.

Lexverify’s AI-powered assistant helps prevent legal, compliance, and cyber risks on electronic communications in real time, providing continuous development support to employees.

Lexverify, which is based in Birmingham, uses natural language processing (NLP) to make risk prevention on electronic communications as easy as spell checking. It aims scans electronic communications to detect potential risks in areas such as competition law, financial sanctions and GDPR, before they are sent, minimising exposure and providing continuous training to employees.

Lexverify’s vision is to create a world where electronic communication is an asset, not a liability. The investment will enable the company to make the key hires it needs to fulfil its expansion plans, following successful pilots with enterprises in the financial services and pharmaceutical sectors.

Midven has monitored the success of the company since 2021 when they referred it to the National Cybersecurity Centre’s ‘NCSC For Startups’ programme, which is delivered by Plexal, the innovation company solving society's challenges through collaboration with government, startups and industry. More recently Midven has provided strategic guidance to Lexverify to improve the business’ investment readiness, culminating in the latest investment round.

Cristian Gherhes, Founder & CEO of Lexverify, said: “Today, reactive measures fall short, and with Midven's support, we're not just adapting; we're pioneering. Their referral to the NCSC for Startups was the spark, and this £900,000 investment is the fuel for our next chapter. We're not just securing businesses; we're revolutionising risk & compliance and cyber security in the digital landscape, helping organisations to achieve proactive compliance at scale.”

Huw Sparkes, Investment Manager at Midven, added: “Lexverify offers cutting-edge technology to proactively scan electronic communications in real time, and in doing so sets a new standard for risk management, employee training, and productivity growth. We are thrilled to support them on their journey to modernise the way businesses manage risk and foster a safer, more efficient, and professional workplace environment.”

By Nicky Godding

Nicky Godding is editor of The Business Magazine. Before her journalism career, she worked mainly in public relations moving into writing when she was invited to launch Retail Watch, a publication covering retail and real estate across Europe.

After some years of constant travelling, she tucked away her passport and concentrated on business writing, co-founding a successful regional business magazine. She has interviewed some of the UK’s most successful entrepreneurs who have built multi-million-pound businesses and reported on many science and technology firsts.

She reports on the region’s thriving business economy from start-ups, family businesses and multi-million-pound corporations, to the professionals that support their growth and the institutions that educate the next generation of business leaders.