Mindflair (AIM:MFAI), the AIM-quoted AI investment company, has announced that Xylo, a portfolio company held through Sure Valley Ventures' second fund in which Mindflair holds an interest, has raised £2.8 million in pre-seed funding.
CapitalT led the round, with participation from Common Magic, Sure Valley Ventures, Tiny VC and Endurance Ventures, alongside angel investors from DeepMind, Gensyn and Dawn Capital, as well as exited govtech founders.
Xylo develops AI agents that handle the administrative workload around planning decisions, including chasing documents, checking submissions and collating responses, while keeping final judgement with planning officers.
The company built its platform through more than 300 hours working alongside practising planning officers, and early results show councils using the software are processing 40% more applications per officer each month, with 83% of officers reporting improved accuracy.
Nicholas Lee, director of Mindflair, said the raise "further demonstrates the quality of opportunities being accessed through SVV Fund II and the potential value within Mindflair's AI-focused investment portfolio."
The funding will support Xylo's expansion across UK local authorities facing growing pressure from rising planning application volumes.
