Faculty Secures £30 Million in Growth Funding

U.K.-based artificial intelligence (AI) firm, Faculty, has successfully obtained £30 million (equivalent to $42.5 million) in growth capital from the Apax Digital Fund (ADF). This latest funding round brings the company’s total raised capital to £40 million ($56.6 million) to date.

Expanding Government and Commercial Contracts

Earlier this year, in April, Faculty announced a contract win with the U.K.’s National Health Service (NHS) to enhance its predictive capabilities. The company has also secured at least seven additional contracts with various U.K. government entities.

Faculty’s client base extends beyond the public sector, encompassing prominent organizations such as the U.K.’s National Crime Agency, Red Bull, Virgin Media, and Moonpig.

Future Growth and Investment Plans

The company anticipates creating over 400 new positions across its engineering, product, and delivery divisions. A significant portion of the investment will be allocated to the development and implementation of Faculty’s new learning and development program.

Established in 2014 by Dr. Marc Warner, Dr. Angie Ma, and Andrew Brookes, Faculty is recognized for its preference for recruiting individuals with doctoral degrees in mathematics and data science.

“AI as a Service” Approach

Faculty distinguishes itself by offering an “AI as a service” model, applying its platform to analyze real-world data and deliver tangible results. This includes optimizing marketing expenditures for businesses and accurately forecasting consumer demand.

However, the company previously garnered attention for its involvement in the Vote Leave campaign during the U.K.’s referendum on EU membership.

Post-Brexit Opportunities and Political Stance

Following its contribution to the Vote Leave campaign’s success, Faculty has ironically been awarded a government contract focused on utilizing machine learning to manage Britain’s fishing waters in the wake of Brexit. This occurs despite the challenges currently facing the fishing industry due to the implications of Brexit.

In a recent conversation, Marc Warner, CEO and co-founder of Faculty, stated the company has no intention of engaging in political work again. He explained, “We’ve learned from past experiences. While contributing to positive change is valuable, our focus is on delivering impactful AI solutions, not on public debate.”

Investment Strategy and Market Position

Warner elaborated on the investment, stating, “This funding will primarily support expansion within the U.K. and subsequent international growth. We’ve demonstrated the ability to deliver significant, scalable AI solutions.”

He continued, “Customers are often cautious due to the hype surrounding AI. We’ve identified practical applications that provide genuine value, and this investment will enable us to enhance our capabilities and serve our clients effectively.”

U.K. as an AI Hub

Faculty intends to continue leveraging the U.K.’s skilled workforce. “The U.K. provides an excellent environment for AI development, boasting leading universities and a thriving startup ecosystem,” Warner noted. “It’s a more diverse landscape than San Francisco, with less competition from major tech companies.”

Apax Digital’s Perspective

Mark Beith, partner at Apax Digital and now a member of Faculty’s board of directors, commented, “Faculty is a leading AI innovator with advanced technology, a strong culture, and exceptional customer satisfaction. They empower clients to quickly and responsibly realize the benefits of AI, ensuring fairness, transparency, and data privacy.”

Beith added, “Having experienced the impact of their solutions firsthand, we are excited to partner with Marc, Angie, Andy, and the team to facilitate their global expansion.”

Existing Investors and Cryptocurrency Holdings

The Apax Digital Fund joins Faculty’s current investors, which include Guardian Media Group Ventures, LocalGlobe, and Jaan Tallinn, a founding engineer of Skype.

Financial filings with the U.K.’s Companies House reveal that Tallinn provided Faculty with 350 units of Ether in January 2018, valued at approximately $434,000 at the time, and 50 bitcoins in March 2020, worth around $316,000.