Case study
Veridox, an AI-powered fraud detection platform, has secured £1,000,000 in funding led by Outward VC, an early stage venture capital fund backed by the Enterprise Capital Funds programme. This investment enabled Veridox to hire key talent, accelerate product development, and scale its platform to meet rising customer demand.
| Region/Nation | North West |
|---|---|
| Sector | Technology |
| Programme | Enterprise Capital Funds |
| Partner |
Founded by Daniel Sandler, a former solicitor with a background in mathematics and finance, Veridox was initially developed as an internal tool to log damage on rental vehicles. During this phase, Daniel engaged in extensive conversations with vehicle insurers and through these discussions, he uncovered a persistent challenge: fraud detection in claims was slow, manual, and heavily reliant on human review.
Recognising the potential for automation and intelligence, Veridox pivoted from its original purpose to tackle this industry-wide pain point. What began as a practical car tracking app has since evolved into a cutting-edge AI platform, transforming how insurers detect and prevent fraudulent claims faster, smarter and at scale.
I never really intended to build a fraud detection platform. I just wanted to stop my cars from getting damaged. But then insurers started telling me the same thing: ‘I wish I had a way to throw documents into something and know instantly if there’s fraud.’ That’s when I realised there was a real opportunity. - Daniel Sandler Founder at Veridox
For Daniel Sandler, securing equity finance wasn’t just about capital - it was about unlocking momentum. The funding arrived at a pivotal time, enabling Veridox to transition from a proven prototype to a fully operational, enterprise-ready fraud detection platform.
The funding came from Outward VC, an early-stage fund focused on fintech and connected sectors, which received backing from the Enterprise Capital Funds programme. Outward VC Principal, Sanchit Dhote described Sandler’s thorough preparation and relationship-focused approach as key to moving quickly and decisively
Daniel came to us with clear customer validation, strong product-market fit, and a grounded plan for how he’d use the funds. He focused on building relationships and getting things done. - Sanchit Dhote Principal at Outward VC
Since securing finance, Veridox has secured partnerships with some of the world’s largest insurers. The timely capital injection accelerated product development and advanced the company’s broader mission: helping the insurance industry fight fraud more intelligently and efficiently.
The motivation for securing the funding was to scale the platform beyond its initial cohort of insurance partners, invest in key technical hires, and accelerate development to meet growing demand from both mid-size and global insurers. Equity finance allowed Veridox to hire key personnel, most notably a Chief Technology Officer, which will significantly enhance the platform’s technical infrastructure.
With modern tools making online collaboration seamless, Veridox has embraced a fully remote team, a digital-first approach. For now, the focus remains on sustainable growth, keeping operations lean, and continuing to deliver maximum value without unnecessary overhead.
Currently operating in a closed beta with 15 handpicked insurance clients, including some of the largest names in the sector, Veridox is refining its platform in close partnership with its users.
Instead of relying on demos and direct sales tactics, Veridox plans to make its tools openly accessible, empowering insurers to explore and integrate their own technology.
The ECF programme aims to increase the availability of capital to high-potential, innovative SMEs facing funding barriers at the early-stage. We do this through supporting new and emerging Fund Managers, like Outward VC, who can then look to invest in strategy-aligned companies that require equity investment to try and achieve their growth ambitions. - Mark Sims Senior Director, Funds at British Business Bank
Startups looking to raise equity capital can learn from Veridox’s experience - thoughtful preparation and the right partner can turn a potentially challenging process into a transformative one.
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