Newport-based Envolve Tech, whose pioneering AI platform allows retailers to make informed product recommendations to customers from an analysis of online chat function conversations, has raised £720,000 to support its growth plans.
The vast majority of the investment was secured from private investors, including several prominent members of the performance marketing industry from the Thorium Technology Investor Network.
Additional investment came from the female angel investment network Angel Academe.
The funding round for the company, founded by its chief executive Emma Smith, had an initial target of £325,000, but was increased following stronger than expected investor demand.
Envolve Tech’s main product is an AI-powered virtual shopping assistant (VSA), which sits inside the online chat function of client websites.
The VSA can identify sales opportunities within customer conversations, making intelligent product recommendations based on sophisticated language analysis.
Since its launch last year the VSA has been added to the websites of major retailers in the UK and USA, including appliance makers Beko, Haynes Manuals, Stila Cosmetics, and designer bag brand The Sak.
Performance marketing network Tradedoubler also recently added the VSA to the website of their new specialist network for small companies.
The equity funding comes on the back of significant interest from retailers looking to maximise the opportunities from the rise in online sales resulting from the pandemic.
Envovle Tech said the funding would be used to meet growing client demand, as well as developing further product improvements.
It will also support the projected doubling of its workforce, currently 10, by the end of 2021. Next year Envolve Tech is also anticipating another equity round.
Chief executive and founder of Envovle Tech, Emma Smith, said of the latest funding boost: “Closing this round, especially at the higher than expected amount, provides Envolve Tech with a huge opportunity now.
“We are speaking to bigger and bigger retailers every week about helping them boost their conversion rates, and now we have the space to focus on just this new business and product improvements for the foreseeable future.”
Chairman of Thorium Technology Investors Mike Bourne said, “Envolve Tech is seeing a rapid uptake of its technology which is used to enhance and up sell clients using online chat services. TTI investors are delighted to lead this round to fund the company through this period of rapid global expansion as leading global brands deploy its technology.”
Angel Academe advisory board member and deal lead Mel Varley said: “From the get-go we were hugely impressed with Envolve Tech’s drive and insight. They have developed a product that has the potential to deliver real innovation in an arena that has only grown and grown this year and yet remains ripe for disruption.”
