RegTech Novatus has raised £30 million in funding from US-based growth equity firm Silversmith Capital Partners.
Founded in 2019 by Andrew Hedley and Matthew Ranson, London-based Novatus was established to create a tech-driven solution to better manage risk and regulation.
Its transaction reporting technology and advisory solutions support a growing base of blue-chip clients in the financial services sector, helping them navigate the increasingly complex regulatory landscape.
Novatus’ En:ACT software allows clients to perform complex regulatory checks and identify issues within seconds, reducing costs and simplifying compliance.
“We are delighted to partner with Silversmith as we embark on the next chapter of our growth journey. Silversmith shares our values and vision – particularly our passion for building great products to make our clients’ daily lives better, safer and more efficient,” said Hedley.
“This investment will be used to double down on that commitment to innovation while also fueling our continued international expansion, particularly in North America following our successful entry into Australia last year.
“It is a real privilege to work with such brilliant people across our team and we are incredibly excited for the next chapter of growth.”
Maven VCTs achieved 4.7x total return from its partial realisation – inclusive of an ongoing minority stake in the business – which comes just over two years after it first invested in the company.
In that time, Novatus increased its annual recurring revenues by 13-fold, more than doubled its headcount, expanded internationally and made several strategic hires to its senior leadership team.
Alan Robertson, partner at Maven, commented: “Maven’s partial realisation of its investment in Novatus is a fantastic result for our VCT shareholders whilst retaining an ongoing minority shareholding reflects our continuing belief in the company and its future growth potential.
“As early investors who backed management to develop their market leading En:ACT technology, it’s gratifying to see the level of interest that there has been in the company from investors, culminating in today’s significant investment from Silversmith.
“This is testament to the founders Andrew and Matt and the growing team at Novatus who have excelled. The trust that its clients put in Novatus and the regulatory complexity driving the need for the En:ACT solution has driven real value in the Novatus business.
“With new investment from Silversmith alongside Maven’s ongoing support we are confident that Novatus will continue to deliver for its clients, including further international expansion, notably in the US and are excited to be part of that journey.”