Business
UK govtech AI business Xylo raises £2.8 million
Mindflair plc announced that its portfolio company, Xylo, a UK govtech AI business, has successfully raised £2.8 million in pre-seed funding. Xylo utilizes AI agents to streamline the processing of planning applications for local authorities, leading to a reported 40% increase in applications processed per officer and an 83% improvement in accuracy for officers. This funding round, led by CapitalT and supported by other institutional and angel investors, underscores the potential value within Mindflair's AI-focused investment portfolio. Disclaimer*
About this update from Mindflair Plc
1 July 2026 Mindflair plc ("Mindflair" or the "Company") UK govtech AI business Xylo raises £2.8 million Mindflair plc, the AIM-quoted company focused on investing in Artificial Intelligence ("AI") related technology, is pleased to announce that Xylo, a portfolio company in Sure Valley Ventures' second fund ("SVV2"), in which Mindflair holds an interest, has raised £2.8 million in pre-seed funding. The funding round was led by CapitalT and joined by Common Magic, SVV, Tiny VC and Endurance Ventures, together with angel investors from DeepMind, Gensyn and Dawn Capital, Mark Ransford and exited govtech founders. Xylo is a UK govtech company helping local authorities process planning applications more efficiently and with greater accuracy. Its AI agents undertake the administrative work surrounding planning decisions, including chasing documents, checking submissions and collating responses, while ensuring that judgement and decision-making remain with planning officers. Planning departments are under increasing pressure from administrative volume as well as application demand. Xylo has developed its platform following more than 300 hours working alongside practising planning officers and early results indicate that councils using the platform are processing 40% more applications per officer each month, with 83% of officers reporting that the platform helps them work more accurately. Nicholas Lee, Director of Mindflair plc, commented: "Xylo is addressing a clear and material problem for local government, where AI can have an immediate and measurable impact by reducing the administrative burden while preserving the role of experienced officers. The successful £2.8 million funding round, supported by a strong group of institutional and sector specialist investors, further demonstrates the quality of opportunities being accessed through SVV Fund II and the potential value within Mindflair's AI-focused investment portfolio." The Directors of the Company are responsible for the release of this announcement. The person who arranged for the release of this information is Nicholas Lee, a director of the Company. AGM reminder As announced on 29 June 2026, the Notice of Annual General Meeting ("AGM") has been sent to shareholders of the Company and the meeting will be held at the offices of Orrick, ...