Artificial intelligence (AI) and data analytics startup Quantexa has become the UK’s first company to secure unicorn status in 2023 following a Series E funding round.
The London-based startup has reached a valuation of $1.8 billion after raising $129 million in an investment round led by Singapore-based firm GIC.
The investment follows a previous funding round in July 2021 which saw the firm raise $157 million at a valuation of $800 million.
Quantexa said it plans to continue global expansion and strengthen its decision intelligence (DI) platform capabilities in low-code data fusion, graph analytics, machine learning, natural language processing, and AI.
Quantexa uses AI and data analytics tools to solve “major challenges across data management, KYC, customer intelligence, financial fraud, and risk”.
The firm works with a range of global organisations, including BNY Mellon, HSBC, Standard Chartered, Danske Bank, Vodafone, and the Public Sector Fraud Authority in the UK Cabinet Office.
“After closing our Series D investment round, Quantexa has been on a transformational journey, accelerating the growth of our global software business and firmly establishing our leadership position in the emerging decision intelligence category,” said Vishal Marria, CEO at Quantexa.
“In a challenging market we have doubled our ARR, our user base, and continue to penetrate new markets and industries,” Marria added. “This infusion of capital will fuel further innovation, diversification, and expansion, and opens exciting options for our future.”
Dwindling unicorn creation
Quantexa’s new unicorn status comes amid a troubling period for tech startups in both the UK and globally. Deteriorating economic conditions over the last 12 months resulted in a significant decrease in venture capital funding.
This reduced capital flow meant that the number of new unicorns in the UK tech sector dipped last year compared to a record high in 2021.
Tech Nation analysis found that the growth rate of unicorns slowed to around 4% in 2022, a marked decrease compared to a 41% growth rate recorded in the year previous.
This prompted the now-defunct industry champion to issue a warning over a potential 'unicorn winter' if the industry fails to address key challenges facing high-growth firms.
AI investment across 2022 also decreased significantly, according to the State of AI report. The report, published in October, found that AI startups across Europe raised more than $70 billion across the year.
This rate of investment paled in comparison to 2021 highs, which saw funding rounds increase by 60% amid a spate of interest in the AI space.
Recent excitement surrounding generative AI and the emergence of products such as ChatGPT, has spurred a revival in investment in the space, however.
Analysis from Pitchbook in March found that VCs have begun ramping up investment in generative AI, with funding in the space reaching $4.5 billion in 2022.
The report found that the global generative AI market is expected to reach $42.6 billion in 2023 as investors grow increasingly bullish on the potential of generative AI products and services.
