RegTech scale-up lands £1.9 million to fuel growth

A regulatory technology company has secured £1.9 million in funding to accelerate product development and support its expansion across UK and international markets.

CoComply, based at Glasshouse within Cheshire’s Alderley Park innovation hub, has secured the funding in a round backed by Mercia Ventures through the Northern Powerhouse Investment Fund II (NPIF II), venture capital firm Haatch and investors including technology entrepreneur Seb Timpson and Bollin Group chief executive Stephen Cann.

Bosses say the funding will help the company expand its sales, marketing and delivery operations while further developing its AI-powered external workforce compliance platform.

The investment will also see Richard Law, former chief executive of identity verification company GBG, appointed as CoComply’s chair.

Tim Dempsey, managing partner of Epiphany Capital, provided fundraising advice on the investment round.

Michael Cleavely, founder and chief executive of CoComply, said: “Despite growing reliance on external workers in every industry, many businesses still struggle to answer a very basic question: how many people actually work for us, what are they doing and how are they engaged?

“That becomes a serious governance and compliance problem when responsibility is spread across business functions. 

“Our mission is to provide the decision and governance layer across these teams, helping them choose the right engagement model and classify work correctly from the outset.

“We’ve brought together investors with first-hand experience of building substantial businesses who can help us make better decisions, challenge our thinking and introduce us to the right people as we grow. 

“That experience matters enormously at this stage.”

Founded by Michael in 2020, CoComply was born from his experience helping a major organisation identify and classify its contractor workforce following changes to IR35 regulations.

The company helps businesses identify and manage their external workforce, including contractors, agency staff and workers whose roles may be hidden within supplier agreements.

Its technology enables organisations to classify workers correctly and meet compliance requirements relating to IR35, Right to Work and modern slavery.

CoComply recorded revenue growth of 240 per cent in 2025, with a further increase of more than 120 per cent forecast for 2026.

Its growing customer base includes Aston Martin, RS Group, Dementia UK and the Royal Yachting Association, alongside other mid-market businesses and FTSE 100 companies.

Maurice Disasi, of Mercia Ventures, added: “Organisations increasingly rely on outsourcing, yet many lack a clear understanding of who is delivering the work. 

“What stood out to us was the scale of the problem and how poorly it is currently addressed. CoComply’s ability to identify and classify hidden workers differentiates it from other solutions and positions the business well as regulation and governance requirements continue to increase.”

Marwa Ebrahim, associate at Haatch, added: “CoComply is tackling a significant and often overlooked challenge for businesses, with a platform that gives organisations much-needed visibility and control over their external workforce. 

“We’ve been impressed by the team’s first-hand understanding of the problem, the traction they’ve built and the opportunity to establish a new standard for workforce compliance. 

“We’re delighted to be backing Michael and the team as they scale the business in the UK and internationally.”

The £660 million NPIF II fund, operated by British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help small and medium-sized businesses.

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