Published: Dec 14, 2023
Focus: Growth Capital
The Maven VCTs have completed a £1 million follow-on investment in RegTech specialist Novatus Global. London headquartered Novatus helps financial organisations prevent or remedy regulatory and compliance issues through the provision of advisory services and regulatory software tools.
Combining cutting-edge proprietary technology and market leading advice, Novatus enables its clients to navigate complex regulatory issues, maximise commercial opportunities, and build sustainable businesses. Its flagship transaction reporting platform enables banks and asset managers to meet their transaction reporting reconciliation requirements in an efficient and cost-effective manner, while providing the business with high value, recurring SaaS revenues from a blue chip client base.
The Maven VCTs invested £2 million in Novatus in July 2022 to capitalise on the significant growth opportunities which exist in the RegTech market. Since then, the business has made significant commercial progress and delivered continued year on year growth, securing several key contracts and increasing annual recurring revenues by 263%. The business has also received a number of awards and industry recognition including “Most Innovative Product of the Year” FStech Awards 2023 and “Best Regulatory Consultancy – Europe” RegTech Insight awards Europe 2023.”
Headcount has more than doubled and the senior team at Novatus was also strengthened with the appointment of Bill Michael as Head of Strategy and Nick Baker as Chair. Bill was the former UK Chair and Senior Partner at KPMG and Nick founded advisory business Alpha FMC which he helped grow to eventual listing. Alpha FMC has a current market cap of over £430 million.
The business operates in a growing market with clear and compelling growth drivers as financial services organisations are subject to ever increasing and more complex regulatory obligations. The follow-on funding from the Maven VCTs will enable Novatus to expand its sales and marketing resource and further invest in its technical stack to increase efficiencies and support further growth as services are delivered to a global client base.
“We remain convinced of the market opportunity for Novatus and the co-founders, Andrew and Matthew, have proven to be an entrepreneurial and driven team who are focused on delivering leading services and technologies to their clients. The business has made significant progress since our original investment, winning new work while securing contract extensions and upsells for existing clients. The team has invested heavily to support future growth, doubling its talented and specialist work force. The recent appointments of Nick as Chair, and Bill to lead on Strategy come at an opportune time, adding significant experience as the company continues on its growth journey and which this additional funding from Maven is targeted to accelerate.”
Alan Robertson, Partner at Maven
“Maven’s commitment to our vision has been transformative for the business. The additional funding stands as a testament to their belief in our mission and the value of groundbreaking innovation within our industry. This investment arrives at a critical juncture, empowering us to accelerate our growth trajectory, bolster our research and development endeavours, and expand our market reach. Key to this is our expansion into the Australian market to support firms with major regulatory changes in 2024. This has been a year of great success, and we are excited to partner with Maven in the new year and beyond.”
Andrew Hedley, Co-founder of Novatus
“Maven's strategic guidance and support have been instrumental in propelling us toward achieving significant milestones. We are grateful for their partnership, which has been a cornerstone of our success, enabling us to solidify our position as pioneers in the transaction reporting sector. With this renewed backing, we are poised to embark on an exciting chapter, driving forward our resolute commitment to delivering exceptional value and innovation. We look forward to leveraging this investment to scale new heights of success.”
Matthew Ranson, Co-founder of Novatus