News by David Johnson
écrit le 28 March 2025, MÀJ le 28 March 2025
28 March 2025
Temps de lecture : 9 minutes
9 min

Children's mental health, access to private rental and Elbow Beach's new £80M fund in this week's Maddymoney

Every week, Maddyness brings you the latest investment news from the UK startup ecosystem. Here's a recap of this week's investments.
Temps de lecture : 9 minutes
Total
£4.86M
Number of deals
4

Health-tech AI startup Orli secures £60,000 from Bethnal Green Ventures’ Tech for Good Programme

Orli, a health-tech startup founded by NHS A&E doctor Mark Cox, has secured £60,000 in funding from Bethnal Green Ventures’ Tech for Good Programme. The company is tackling the UK’s child mental health crisis by developing an interactive AI-powered platform that helps children externalise and regulate their emotions through game mechanics. With over 250,000 children in England still waiting for mental health support, Orli offers an accessible digital-first alternative that engages both children and their families. This investment reflects growing confidence in Orli’s approach to breaking down the stigma around mental health.

The Orli platform features an AI companion that mirrors children’s emotions, guiding them through exercises to develop emotional awareness and self-regulation skills. A parent-facing app provides real-time insights into a child’s progress and suggests at-home support techniques. Founder Mark Cox highlighted the urgent need for solutions like Orli, based on his experience working in A&E and witnessing the consequences of unmet mental health needs in children. Paul Miller, CEO of Bethnal Green Ventures, praised Orli’s potential to address social inequalities and help millions through technology-driven solutions.

With the new funding, Orli plans to expand its development team, enhance the user experience, and accelerate clinical validation through UK healthcare partnerships. The company is also working with schools nationwide, running workshops and pilot programmes to integrate its technology into classroom settings. Future plans include the incorporation of wearable technology to better track engagement and effectiveness, further strengthening Orli’s impact on children’s mental health.

Crisis announces exciting new investment to remove bias from private rental sector

Venture Studio, the investment arm of Crisis, has funded fintech startup Husmus to improve access to private rental housing. Founded by Sarah and Mattias Wernér, Husmus offers an alternative to traditional credit scoring, assessing diverse income sources and behavioural metrics to reduce bias in landlord decisions. It also partners with insurers to create financial products, like the Husmus Tenant Guarantee, removing the need for guarantors and upfront rent.

This investment has helped Husmus secure backing from Innovate UK and Google. With 12.1 million UK adults facing financial barriers to renting, Husmus and Crisis see urgent demand for new solutions. While the Renters’ Rights Bill improves tenant security, Crisis warns excessive guarantor requirements still block access to housing.

Venture Studio, which funds startups tackling homelessness, now has six companies in its portfolio. It is seeking further investment, with its latest funding round closing on 17 April. Husmus CEO Sarah Wernér called the investment a key step in scaling their impact, while Crisis’ Liz Choonara stressed the need for more innovative solutions.

Healsgood secures £1.5M funding to transform NHS service delivery

Healsgood, the healthtech company behind Flexzo AI, has raised £1.5M in an oversubscribed round led by Fuel Ventures to tackle NHS staffing inefficiencies. Founded by Jack Henderson, Healsgood uses AI to reduce patient waiting times and improve service delivery, addressing critical workforce shortages and administrative burdens.

Flexzo AI helps NHS hospitals run extra clinics and theatre sessions internally instead of outsourcing, providing instant access to 30,000+ healthcare professionals to fill staffing gaps. By cutting reliance on external agencies, it lowers costs, optimises resources, and improves patient care.

With this funding, Healsgood will expand its AI platform and staff bank nationwide. CEO Jack Henderson said: “This investment helps NHS trusts cut admin, reduce costs, and get patients timely care.” Fuel Ventures' Mark Pearson added: “Healsgood’s AI platform delivers massive cost savings and efficiency gains for the NHS.”

Flagright, an AI-native AML compliance platform, raises £3.3M led by Frontline Ventures

Flagright, an AI-native AML compliance platform, has raised £3.3M in a seed round led by Frontline Ventures, with participation from notable angel investors. The funding will fuel product development and international expansion, strengthening its role in the fight against AI-powered financial crime.

Founded in 2022 by Baran Ozkan and Madhu Nadig, Flagright has grown into a full-suite AML compliance platform used by 50+ customers across six continents. Its AI-powered solutions—dynamic risk scoring, automated case management, and real-time transaction monitoring—deliver 90% fewer false positives and 87% less manual effort, significantly enhancing financial security.

With this funding, Flagright is expanding its AI Forensics suite to automate compliance workflows and scaling operations in North America and EMEA, reinforcing its global presence. Partner at Frontline Ventures, Will Prendergast, stated: “Flagright is set to become the compliance platform category winner, making them a perfect fit for Frontline.”

In other investment news

Elbow Beach backs Britain’s entrepreneurs with launch of £80M Climate Impact Fund  

Elbow Beach has launched its £80M Climate Impact Fund 2, securing £63M in commitments, including up to £50M from the British Business Bank. With £40m in deployable capital, the fund aims to back 36 early-stage UK startups over the next four years, focusing on automation, AI, carbon capture, electrification, and low-carbon materials.

CEO Jon Pollock emphasised the fund’s goal of driving commercial adoption of climate technology by matching innovation with industry needs. The UK ranks second globally in climate tech startups but lags behind the US in funding. Elbow Beach seeks to bridge this gap, ensuring British climate tech scales effectively.

Elbow Beach has supported early-stage firms since 2021, backing companies like Munro Vehicles (electric utility vehicles), Anaphite (energy-efficient EV batteries), and WASE (waste-to-energy solutions). Christine Hockley of the British Business Bank highlighted the investment as a boost for UK climate-tech founders, reinforcing the Enterprise Capital Funds programme’s role in strengthening venture capital provision.

Incore Invest Raises €25M in Second Fund to Accelerate High-Growth Investments Across Europe

Incore Invest has launched Incore Invest II, a €25M fund aimed at accelerating the growth of high-potential SaaS, embedded finance, and fintech companies across Europe, particularly in the Nordics, Northern Europe, and the UK.

This new fund builds on Incore’s success by providing strategic, long-term capital to businesses with proven revenue models, offering an alternative to traditional VC constraints.

CEO Nicolai Chamizo describes Incore Invest II as a natural evolution, targeting the next wave of financial and technological transformation amid regulatory shifts like PSD2/3 and open banking. The fund also strengthens its team with Kasper Terrvik as Investment Manager, leveraging his expertise from Bloomberg and SEB Corporate Finance.

In other international investment news

Strike Raises $13.5M series A to expand AI-powered continuous pentesting in the U.S. & Brazil 

Strike, the Uruguayan cybersecurity disruptor behind Continuous Penetration Testing, has raised $13.5M in Series A funding to scale in the US and Brazil and launch Strike360, its AI-powered pentesting engine. The round was led by FinTech Collective, with participation from Galicia Ventures and strong backing from existing investors like Greyhound Capital and FJ Labs. Strike’s platform combines elite ethical hackers with AI-driven automation to detect, retest, and resolve vulnerabilities faster than attackers can exploit them, offering enterprises continuous security validation and real-time compliance reporting.

With triple-digit year-over-year growth and customers like Santander, Mercado Libre, and Okta, Strike is now expanding aggressively. CEO Santiago Rosenblatt has relocated to the US to drive expansion, while a São Paulo hub is being established to serve Brazil. Strike360 will take security automation further with AI-powered attack simulations, automated retesting, and compliance streamlining. By 2025, Strike aims to surpass eight figures in ARR and automate 50% of the pentesting process, cementing its leadership in AI-driven offensive security.

CADDi raises $38M Series C to double down on rapid growth of their AI data platform for manufacturing companies

CADDi, the AI data platform transforming manufacturing, has raised $38M in a Series C extension led by Atomico, with continued support from Global Brain and Minerva Growth. The funding will accelerate product development and international expansion, particularly in the US and Europe.

Founded in Tokyo in 2017, CADDi helps manufacturers structure and enrich supply chain data, starting with technical drawings. Its AI-powered search engine optimises parts pricing, procurement, and workflow efficiency, already winning customers like Hitachi, Kawasaki, and Subaru. With Co-Founder & CEO Yushiro Kato relocating to Chicago, the company is doubling down on AI-driven operational transformation.

Luca Eisenstecken, Partner at Atomico, stated: "CADDi’s AI platform is a game-changer, driving unprecedented efficiency in manufacturing. Their rapid growth, exceptional retention, and strong unit economics make them a clear leader in this space."

n8n raises €55M from Highland Europe to transform workflow automation for technical teams

n8n, the AI-powered workflow automation platform for technical teams, has raised €55M in Series B funding, led by Highland Europe with participation from HV Capital, Sequoia, Felicis, and Harpoon. With 230,000 active users and 5x ARR growth in the past year, the funding will accelerate enterprise expansion and strengthen n8n’s thriving community.

Founded in 2019 by Jan Oberhauser, n8n combines the flexibility of code with the speed of no-code, empowering teams to build and scale AI-driven automation. Unlike traditional tools, n8n enables enterprises to integrate LLMs, incorporate custom code, and maintain human oversight for compliance. Companies like Delivery Hero, Musixmatch, and Bordr have saved significant time and resources using n8n.

With this new investment, n8n will enhance enterprise tools, expand its team, and open offices in New York and London. CEO Jan Oberhauser emphasised that n8n is redefining AI-powered automation, giving users the power of a “10x developer” in an increasingly AI-driven workplace.

Automaise's AI Agents secure €5M investment to accelerate growth

Automaise has secured €5M in Series A funding to expand its AI-driven enterprise platform and accelerate global growth. Led by Oxy Capital, with support from BrightPixel, Armilar, and HCapital, the investment will fuel expansion into Europe and the U.S., as well as strengthen Automaise’s workforce with 30 new hires by 2025.

CEO Ernesto Pedrosa calls the funding a “vote of confidence” in Automaise’s mission to streamline AI adoption for businesses, enhancing customer service and productivity. Since its 2017 launch, Automaise has helped major clients—including Intelcia, Altice, and Novobanco—boost productivity by up to 60%.

With AI increasingly essential for competitiveness, Automaise remains committed to empowering businesses with efficient, accessible automation.

GravitHy raises €60M to accelerate the decarbonization of the steel industry

GravitHy, a low-carbon iron producer for the clean steel sector, has secured €60M in funding from new investors, including Japan Hydrogen Fund, Marcegaglia, Ecolab, Rio Tinto, and Siemens, alongside reinvestment from Engie New Ventures and InnoEnergy.

This funding will drive GravitHy towards a final investment decision in 2026, accelerating engineering, permits, talent acquisition, and key contracts. Its Fos-sur-Mer plant, set to open in 2028, will produce 2 million tons of Direct Reduced Iron annually using green hydrogen—marking a major step in decarbonizing steel production.

CEO José Noldin emphasized the role of collaboration in reshaping the steel industry, while investors highlighted the momentum behind industrial decarbonization. With strong backing and Europe’s push for green industry, GravitHy is positioned to redefine the global iron and steel supply chain.

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