Cyber start-up raises $7 million to tackle AI risk

A Manchester-based cybersecurity start-up has secured $7 million to accelerate the rollout of technology designed to tackle emerging risks created by rapid software development.

Cytix has completed a Series A funding round led by Northern Gritstone, with participation from existing investors Auriga Cyber Ventures and NPIF II – PXN Equity Finance.

The latter is managed by PXN Ventures as part of the Northern Powerhouse Investment Fund II.

Bosses say the investment will support the rollout of Cytix’s newly launched change risk platform, which monitors software changes and updates to identify and validate potential security risks.

They add the technology responds to growing pressure on organisations to keep security controls aligned with increasingly rapid software development, as AI-assisted coding, agentic workflows and continuous delivery accelerate the volume and pace of change.

Ben Armstrong, chief executive of Cytix, said: “We chose Northern Gritstone for their conviction in investing in deeptech companies in the North of England with global ambition. 

“Northern Gritstone and Cytix share the belief that software change is becoming a key risk for organisations and those that build software need a solution that scales with the current pace of development. 

“We’re also grateful to the existing investors that have backed us since the early days and increased their commitment because they've seen the thesis play out.”

Ben added: “Software is changing.

“AI-assisted development means change now happens at machine speed. Meanwhile, very few security leaders have control over, or understanding of, those changes from a risk perspective. 

“Right now, existing tools can tell you what vulnerabilities you have, but can’t tell you about the risk. 

“We launched Cytix’ change risk management platform to get control of that risk.”

Cytix’s platform, which entered general release yesterday (August 12), sits between a customer’s software development processes and its risk, security and compliance functions.

It analyses what has changed, assesses the potential business risk, determines what security action is required and provides evidence showing how that risk was managed.

The company says this can help organisations maintain oversight as increasing volumes of AI-generated code enter their systems.

The funding will also help Cytix expand among enterprise and regulated businesses, where demonstrating effective governance of software changes can be a compliance requirement.

Customers can access the technology directly through Cytix or via managed service partnerships with NCC Group and KPMG.

Duncan Johnson, chief executive of Northern Gritstone, added: “The explosion of AI-assisted software development has led to a race to ensure software implementation remains secure. 

“Cytix’s platform aims to help enterprises take a realistic approach, recognising where change carries the most risk whilst allowing businesses to innovate. Northern Gritstone is proud to support another ambitious Manchester-based business in an exciting phase of its growth.” 

Sarah Isal, principal investor at Auriga Cyber Ventures, added: “We invested in Cytix because the team identified early that software change would become a critical cybersecurity challenge. 

“Since then, they’ve shown the resilience and discipline to execute on that vision, building a product that’s earning the trust of enterprise customers and strategic partners alike. 

“We’re proud to continue supporting Ben, Thomas and the team in this next phase of growth.”

The £660 million NPIF II fund, which is operated by the British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help a range of small and medium sized businesses, driving innovation and creating opportunities for businesses to grow, scale, and thrive.

Sue Barnard, senior investment manager at the British Business Bank, added: “Cytix is a great example of the ambitious technology businesses emerging from the North of England, developing innovative solutions to address the challenges created by the rapid growth of AI and software development. 

“Through the Northern Powerhouse Investment Fund II, we’re supporting businesses like Cytix that align with the Government’s Modern Industrial Strategy, helping to strengthen the North’s thriving digital and technology ecosystem.” 

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