The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

VoxSmart Raises $25 Million with Toscafund to Finance Expansion and Growth

In a deal claimed to be one of the largest fundraises conducted for the RegTech and Compliance sector, London-based communications surveillance provider VoxSmart has raised $25 million to strengthen its markets surveillance technology suite and to fund further expansion, particularly in North America and emerging markets. Following $13.7 million raised in earlier rounds of Series A & B funding from investors including Deepbridge Capital and NatWest Bank, the lead investor in the new funding round is Toscafund Asset Management LLP.

VoxSmart provides voice and electronic communications analytics and remote compliance solutions, enabling businesses to supervise communication conducted on a range of different voice and digital platforms for risk and compliance purposes. The company acquired the trading business of Spanish supplier Fonetic in November 2019 for an undisclosed sum.

According to Oliver Blower, CEO, VoxSmart was the first vendor to introduce compliant WhatsApp surveillance to the market in 2016, and now plans to accelerate product development in instant message capture on emerging channels such as Telegram and Signal, which is a key area of focus for the company.

“WhatsApp has gone from being a peripheral used in niche markets to a mainstream communication platform used daily in traditional wholesale markets. It’s no longer the ‘black sheep’ communication method,” Blower says. “Now, platforms like Telegram and Signal are becoming increasingly prevalent, particularly in the digital asset space. We want to be able to say to our customers, it doesn’t matter where you trade or how you communicate, we’ll make sure it’s compliant, it’s secure, and it interfaces with regulation.”

Blower also sees an increased demand for cloud-based surveillance technology such as that offered by VoxSmart as working from home becomes standard market practice in the post-pandemic economy. “A typical trading floor environment has gone from maybe half a dozen to thousands of locations globally, because everybody’s at home. Those locations have to have the same compliance standards as a traditional trading floor. Firms need to ensure that they have exactly the same compliance standards across both. Our technology allows them to have that interoperability between locations, so it doesn’t matter where you trade or sell financial products, you’re compliant. That’s always been our philosophy at VoxSmart, always on, work anywhere, always compliant.”

He says “Toscafund is an excellent name in financial services, their network and their experience in helping growth businesses achieve their ambitions is unparalleled. And with their European, and indeed global, focus, they are 100% the right partner for us, so we’re absolutely delighted that they’ve come aboard.”

Related content

WEBINAR

Recorded Webinar: Getting ready for Sustainable Finance Disclosure Regulation (SFDR) and ESG – what action should asset managers be taking now?

Interest in Environmental, Social and Governance (ESG) investment has exploded in recent years, bringing with it regulation and a requirement for buy-side firms to develop ESG strategies and meet disclosure obligations. The sell-side can help here by integrating ESG data with traditional financial information, although the compliance burden remains with asset managers. The EU Sustainable...

BLOG

CubeLogic Launches New Risk-as-a-Service Solution

Enterprise risk management specialist CubeLogic this week launched a brand new risk analytics solution in partnership with capital markets technology firm Numerix and London-based IOWArocks (formerly MDX Technology), a global marketplace for data, technology and services. The Risk-as-a-Service (Raas) platform provides advanced risk analytics as a fully managed solution, targeting both capital markets firms and...

EVENT

LIVE Briefing: ESG Data Management – A Strategic Imperative

This breakfast briefing will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...