Notify Technology raised £3.1m in new equity in its latest funding round, including investment from the North East Venture Fund, which is managed by Mercia, Calculus Capital and private investors, in one of the largest recent VCT investments in the North East.
Incoming investors, Calculus Capital and Gavin Disney-May will also join Notify’s board, bringing valuable sector experience. The funding round marks the third investment involving Mercia, coming two years after it secured £370,000 from the Mercia-managed North East Venture Fund.
Mercia first backed the company through the fund with an initial £500,000 investment in November 2018.
The business was founded five years ago by Duncan Davies and Andy Dumbell to drive an online platform enabling businesses to improve health, safety and wellbeing in the workplace. They will use the funds to accelerate investment in sales and marketing, as well as product development to deliver artificial intelligence capability to the Notify platform. It will also make additions to help Notify’s clients to meet the growing demands of ESG reporting.
Investing in growth
Notify Technology created the mobile-first software platform so clients can deliver improvements to their safety, well-being and sustainability culture and compliance. It counts the likes of Travis Perkins, Siemens Mobility, Birmingham City University and Cazoo as clients and has users in over 100 countries.
Duncan Davies, Notify’s CEO and co-founder said: “We’ve delivered consistently strong subscription growth over the last three-and-a-half years since Mercia first invested – including 105% growth during the first year of the Covid-19 pandemic – and we see the increasing importance organisations are placing on keeping their people safe and well. We’re confident we can do more with more capital.
“I’m really grateful to the team at Mercia who first invested back in 2018 and are backing us in this latest funding round. Mercia has supported us in getting to the point where we’re able to attract new investors of the calibre of Calculus Capital into the syndicate. We’ve also benefited from having a fantastic chair and early investor, Jayne Archbold, who has shaped our team and strategy.
“We see significant opportunities to help clients solve some of their key challenges around employee wellbeing, sustainability and ESG, and we are delighted to welcome Calculus and Gavin on board.”
Jan Oosthuizen, investment manager for Mercia, said: “It has been great to support the team at Notify once again and see them go from strength to strength. We very much look forward to further developing an already effective team dynamic with the addition of Calculus and Gavin to help the company achieve its potential.”
Adam Rayner, a partner in our Corporate team, led the legal advice to Mercia, with support from Stephanie Brown. Adam and Stephanie have previously advised Mercia on several other investments including all of the previous investments in Notify Technology.
Commenting on the deal, Adam said: “It’s always a pleasure to work with the team at Mercia as they continue to invest in some of the region’s most exciting tech businesses.”