Manchester-based cybersecurity firm Cytix has successfully secured £5 million in a Series A funding round to address escalating software development risks. The investment was led by Northern Gritstone, with participation from existing investors Auriga Cyber Ventures and NPIF II – PXN Equity Finance. This capital will fuel the expansion of Cytix's platform, designed to manage the security challenges posed by AI-assisted coding and rapid deployment cycles.
Addressing AI-Driven Development Risks
The proliferation of AI-assisted development has transformed software change into a significant organizational risk. Traditional security models are struggling to keep pace, leaving many businesses vulnerable to the high volume of AI-generated code. This creates an immediate need for new governance solutions that can operate at machine speed and scale to match modern development.
In response, Cytix has developed a change risk platform to provide clarity and control over this evolving landscape. The system continuously monitors every software update, analyzes its potential risk, and validates the security actions taken. This provides organizations with the necessary evidence to demonstrate how each risk was managed for compliance and regulatory purposes.
Strategic Investment for Platform Rollout
The £5 million funding round was spearheaded by a £3 million investment from Northern Gritstone, a venture capital firm focused on technology in the North of England. The syndicate also included continued support from early backers Auriga Cyber Ventures and NPIF II – PXN Equity Finance. This financial backing underscores strong investor confidence in Cytix's vision and its technological approach to a pressing market need.
Cytix will allocate the new funds to accelerate the commercial rollout of its recently launched change risk platform. The company is targeting enterprise clients and regulated industries where strict governance over software changes is a mandatory obligation. This strategic focus aims to capture a market segment where the platform's value proposition is most critical and immediately applicable.
To facilitate market entry, customers can access the platform directly from Cytix or through its managed service partnerships. The company has established key alliances with prominent firms such as NCC Group and KPMG. These collaborations provide a scalable channel to reach a broad base of enterprise customers seeking advanced security solutions for their development pipelines.
Investor Confidence and Regional Growth
Duncan Johnson, CEO of Northern Gritstone, highlighted the urgency of securing modern software development in the face of AI's rapid expansion. He praised Cytix's platform for enabling a realistic approach that balances innovation with targeted risk management. The investment reflects Northern Gritstone's commitment to fostering ambitious technology companies based in the region with global potential.
Existing investors echoed this sentiment, with Sarah Isal of Auriga Cyber Ventures noting the team's early identification of this critical challenge. She emphasized their disciplined execution in building a product that is earning the trust of enterprise customers and strategic partners. This continued support signals strong belief in the company's long-term growth trajectory and leadership in the sector.
This £5 million Series A investment marks a pivotal moment for Cytix, equipping it to tackle a critical security gap in the modern software development lifecycle. By providing a robust solution for managing change risk, the company is poised to help enterprises navigate the complexities of AI-driven innovation securely. The funding not only accelerates Cytix's growth but also reinforces the North of England's position as a hub for deeptech innovation.