London-based REG UK, a provider of data analytics and risk management solutions, has netted £2.4m in funding from Disruptive Capital Finance.
As part of the investment, Shawbrook supplied a debt facility, but it is unclear what the size of this was.
This equity is earmarked for enhancement of the platform, its team and the systems in order to foster the growth of the startup in the UK and globally. The RegTech currently has a team comprised of 35 people.
Its goal is to improve the insurance industry by streamlining due diligence processes and enhancing risk management via advanced data analytics and monitoring tools. REG aids insurers and intermediaries meet their compliance and management needs.
Its REG Network solution is an on-demand service that lets regulated businesses manage, monitor, and oversee their supplier and customer relationships. The cloud-based tools collect data and monitor counterparties globally so businesses which trade oversees can manage agency relationships in a single location.
The company also offers insight tools to compile data gathered and ensure the right decisions are made around risk, compliance, governance, productivity and growth.
REG (UK) CEO Michael Phair said, “This facility not only provides scope for further growth but is also a validation of what we’ve already achieved. Whilst venture debt isn’t readily available on the high street or from our main bankers, fast growth businesses like REG, with high levels of annual reoccurring revenue need this type of support to scale-up and succeed – particularly internationally.
“We’re delighted with the interest and support Disruptive Capital and Shawbrook have shown us and it’s a positive thing for the InsurTech/RegTech sectors that specialist banks like this exist in the UK.”
Disruptive Capital Finance is a private equity firm and the family office of the Truell family. The firm has a 23 per cent net IRR p.a. across its 51 platform deals over the past 25 years.
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