A Newcastle tech company that helps shipping operators reduce machinery breakdowns and cut carbon emissions using AI has closed a £1.5m seed funding round.
Hoults Yard-based CetoAI specialises in predictive analytics systems for the maritime industry has secured investment led by insurance group Howden Ventures and including reinsurance specialist Chaucer Group, Founders Factory, and existing backers from the Business Investors Group. The firm said it was a step towards bringing its AI tech to the maritime and insurance sectors.
CetoAI’s application uses onboard sensors to monitor data and identify machinery breakdown risks earlier than conventional detection methods. It is designed to give operators insights into the condition of ships so that predictive maintenance can avoid unplanned breakdowns.
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Tony Hildrew, founder and CEO of CetoAI, said: “We are delighted to welcome a host of new investors to CetoAI. Having the support and access to an unparalleled network, including ties to some of the largest ship owners and operators across the maritime sector, will help support our significant growth ambitions over the coming years. The strong relationships which our new investors formed throughout the raise and shared vision for new predictive analytics technologies in the space meant that the decision on where to take capital from was an easy one when we opened the round. We couldn’t be happier with how this fund raise went.”
Tom Hoad, head of Howden Ventures, added: “It was clear from the outset that CetoAI’s technology was borne out of years of experience with commercial vessels. This client understanding coupled with Howden Venture’s MGA platform represents a step change in the way that vast streams of data will be used across maritime and marine insurance underwriting. It is great to witness the industry collectively coming together to use collaboration and innovation to address some of the world’s most pressing risks.”
CetoAI also said it has formed a strategic partnership with global operator Chaucer Group. The marine and innovation team at Chaucer will work closely with the Newcastle firm over the coming months to provide expertise around the marine market.
James Irvine, head of Marine Global Hull Lines at Chaucer added: “CetoAI are pushing the boundaries of data and analytics in the marine industry. Their unique technology enables not only risk response, but true risk prevention and mitigation. Our partnership with CetoAI is the perfect marriage between innovation and insurance, enabling us to develop new solutions for the marine insurance market, ones that deliver real value to clients.”
