Birmingham-based 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. Aiming to help organisations achieve proactive compliance at scale through AI-powered real-time risk prevention, Lexverify uses natural language processing (NLP) to make risk prevention on electronic communications as easy as spell checking. Lexverify solves distinct problems for a client’s legal, compliance, HR, and cyber teams by scanning 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.
The use of electronic communication in business has become an integral part of our work routine, and it has undoubtedly transformed the way we operate, making it more efficient and convenient. However, with this convenience comes the need for responsibility, as non-compliant messaging can pose potential liabilities. The average office worker sends around 10,000 emails per year. Just one misstep in communication can land both the individual and the company in trouble. This risk isn’t exclusive to emails; it applies to various forms of digital communication. In today’s digital work environment, ongoing training and continuous employee development support should be considered the new standard.
Studies suggest that companies are not taking enough measures to prevent real time outbound risk. 85% of organisations using Microsoft 365 have suffered outbound email data breaches, showing that Microsoft 365 security is not sufficient on its own. Outbound email mistakes cost businesses the most, resulting in customer and employee churn, financial losses, and reputational damage. However, there is not a strong outbound solution within the market, a gap Lexverify aims to fix.
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 says “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 says “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.”
Mark Wilcockson, Senior Investment Manager at the British Business Bank, said: “The Midlands Engine Investment Fund has invested in innovative SMEs in the Midlands since its launch in 2017. This investment from the MEIF 1 in Lexverify will allow the business to grow, expand its team and help create new guidelines in cyber security for businesses reliant on electronic communications. MEIF 1 supports small businesses that are innovative while positively impacting the local economy and we urge SMEs that are looking for funding to approach us.”
The Midlands Engine Investment Fund is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
Saj Huq, CCO and Head of Innovation at Plexal, says: “Lexverify is a prime example of a business that’s developed something truly novel and this investment is validation of a market need. From his involvement in our NCSC For Startups programme with the National Cyber Security Centre to participating in our Cyber Runway accelerator with the Department for Science, Innovation and Technology, we’re proud to have Cristian within the Plexal ecosystem and look forward to witnessing his ongoing journey with Lexverify.”
