RegTech startup Naq, an automated data compliance and due diligence platform, has secured $1.5m in its seed funding round.
This investment capital will help Naq bolster its capabilities, with the aim of making it easier for suppliers to have the assurance and security required to protect their infrastructure.
Axivate Capital led the investment, with capital also coming from unnamed angel investors.
The company, which was co-founded by Nadia Kadhim and Chris Clinton in 2021, aims to turn compliance into a competitive advantage for European and British SMEs. Kadhim was named in Forbes 30 under 30.
Naq leverages automated compliance and local data security experts to make cybersecurity, compliance and due diligence easy and accessible for SMEs, whilst providing enterprises and governments real-time visibility over their supplier’s security and compliance posture.
Its platform supports hundreds comply with GDPR, ISO27001 and industry specific regulations. As for cybersecurity, Naq provides clients with guidance on how to protect the business, with risk management and breach monitoring tools.
The platform also helps train staff about cyber threats. It offers bite-sized training courses and phishing tests to improve an employee’s cyber awareness.
Naq CEO Nadia Kadhim said, “SMEs are under immense pressure to meet the data compliance and due diligence requirements set by their respective sectors, customers and partners.
“They spend hundreds of hours every year collecting evidence of their compliance while painfully slogging through lengthy due diligence questionnaires. This is before they’ve even begun to think about how to keep their data secure in the face of growing security threats.”
Axivate Capital partner Taco Kievit added, “As the data privacy and security landscape continues to evolve, compliance is no longer a “nice-to-have”; it’s now an essential part of any business’s operations. The pressure on European SMEs to comply with regulations and complete due diligence has never been higher.
“Naq’s automated platform simplifies this process while also keeping their data secure. We’re excited to see Naq continue to innovate and expand their customer base, securing the supply chain for enterprises and SMEs alike.”
In other RegTech news, Droit, a RegTech company providing companies with intelligent decision-making tools for compliance, raised $23m in its Series B round.
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