Manchester-based cybersecurity business Cytix has secured £5.18 million ($7 million) in a Series A funding round to expand its change risk management platform and manage risks associated with rapid software updates.
The investment round was led by venture capital firm Northern Gritstone, which focuses on science and technology companies in the North of England. Existing investors Auriga Cyber Ventures and NPIF II-PXN Equity Finance, managed by PXN Ventures as part of the Northern Powerhouse Investment Fund II, also participated in the funding.
According to the company, continuous delivery, agentic workflows, and AI-assisted development are accelerating code production beyond the governance capacity of traditional security frameworks. Industry survey findings indicate that 62% of security leaders view organisational security risk as an immediate operational challenge, while only 38% strongly agree that their organisation is prepared to handle the volume of AI-generated code entering their digital systems.
The newly secured capital will support the commercial expansion of Cytix’s platform, which continuously monitors software modifications, validates security risks, and generates compliance documentation for regulatory reporting. The software operates between a company’s software development lifecycle and its risk, security, and compliance divisions, allowing enterprises to access the platform directly or through managed service partnerships with NCC Group and KPMG.
Ben Armstrong, Cytix CEO, 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.
“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.”
In an earlier development revealing structural backing in the region, the Northern Powerhouse Investment Fund II (NPIF II) launched a £660 million fund managed by British Business Bank to provide equity finance, debt, and small business loans to technology and growth companies across the North of England. This public investment framework underpins participation in growth rounds for regional technology businesses such as Cytix.
Duncan Johnson, CEO of Northern Gritstone, said: “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.”
Sue Barnard, senior investment manager at British Business Bank, commented: “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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