EdTech innovator Graide secures £1.6 million investment for expansion

Graide, a spinout from the University of Birmingham, has secured £1.65 million in funding to broaden its operations within the UK and to explore new opportunities in the USA and Canada. This financial backing comes from XTX Ventures, alongside contributions from existing backers such as Mercia Ventures, the MEIF Proof of Concept & Early Stage Fund managed by Mercia and a component of the Midlands Engine Investment Fund (MEIF), SFC Capital, and various private investors.

The company, which has been recognised in the recent EdTech 50 rankings, utilises assistive AI and machine learning technologies to assist educators in grading essays and offering feedback to students. Originally developed for assessing mathematics, physics, and chemistry assignments, Graide has since introduced a versatile platform capable of evaluating essays and reports across a broad range of subjects. Additionally, the firm is developing a feature to identify instances of students employing AI for essay writing.

Graide stands out by evaluating both the structure and quality of student submissions. Unlike typical AI grading systems that rely heavily on extensive datasets for neural network processing and necessitate data sharing among users, Graide operates efficiently without such requirements and can assess multiple questions simultaneously. It also exhibits ‘self-awareness’, confidently assigning marks and signaling when a submission may require closer examination by a teacher.

Founded in 2021 by alumni Robert Stanyon, Manjinder Kainth, and George Bartlett, Graide is presently adopted by several universities, including Birmingham, Durham, Huddersfield, and Sussex, alongside various learning platforms and examination boards. Having already conducted successful pilot schemes in the USA, the Wolverhampton-based company, which employs eight individuals, plans to use the latest funding to enter new markets, further develop its platform, and create four additional positions within the next six months. The total funds raised by the company now exceed £2.5 million.

“Graide provides transparent, explainable AI, a requirement in today’s world, and can cover all subjects taught from school to university level, saving teacher time,” said CEO Kainth. 

“We are pleased to welcome XTX Ventures, which has extensive experience in AI and machine learning, as a new investor in this round.”

XTX Ventures is the venture capital arm of algorithmic trading company XTX Markets. Oliver Scott, global head of treasury at XTX Markets, said: “We are delighted to have invested in Graide and we look forward to supporting the wonderful team there as they continue to expand in the UK and across the US and Canada.”

In 2022 Graide raised £800,000 from the MEIF Proof of Concept & Early Stage Fund, which is managed by Mercia and part of the Midlands Engine Investment Fund.

Hannah Tapsell Chapman from Mercia Ventures added: “Graide uses AI in a transparent and responsible way to speed up marking times while ensuring teachers are in control throughout. 

“With educators worldwide becoming increasingly receptive to innovations as they seek to improve efficiency, this funding will help Manjinder and the team take advantage of emerging opportunities.”