Datox secures pre-seed investment to revolutionise regulatory reporting

Founded in 2024, Datox AI’s purpose is to help financial services firms manage complex regulatory reporting. Their AI-driven platform streamlines reporting to regulatory entities like the FCA and ESMA, overcoming data inconsistencies and enabling fully dynamic automation. 

Scaling ambitions

With a clear vision and an innovative product, Datox set its sights on scaling. To bring their AI-powered platform to more financial service firms and accelerate development, they needed to secure external investment. Farrukh Mukhitdinov, Founder and CEO, explained, ‘We knew we had a solution that solved a real pain point, but to grow and scale, we needed the right investment. That’s when we turned to Harper James.’ 

Choosing us wasn’t just about legal support, it was about finding a partner who understood the unique challenges faced by start-ups, as Farrukh noted: 

We did our research, consulting with seven other firms before choosing Harper James. Your strong reputation in supporting start-ups and flexible service model offered through the Enable subscription plan made you the ideal choice, and after speaking with Callum, we were sold.

Farrukh worked closely with Senior Corporate Solicitor, Callum Giliker, on their pre-seed funding round in February 2025. Callum prepared the subscription documents, ensuring the investment agreement was clearly defined and protected both the company and investors. He also re-drafted the articles of association, clarifying the company’s governance rules, shareholder rights, and decision-making processes. These reassured investors of transparent, structured operations. Finally, he oversaw the warranties and disclosure process, ensuring all relevant company information was revealed to minimise future disputes and boost investor confidence. 

Thanks to this clear and proactive approach, Datox secured its pre-seed round smoothly and is now positioned to seek further investment with a solid foundation in place. 

Farrukh spoke about his experience:

Working with Callum was like having an in-house expert who truly supported our goals. He stripped away the legalese, staying pragmatic and responsive throughout.

We feel confident knowing the Enable subscription plan gives us expert guidance whenever we needed it – at a sensible cost and without any fuss. It’s been a real partnership, and we look forward to continuing that journey as we grow.

From ideation to innovation

The idea for Datox’s platform emerged during Farrukh’s MBA journey at the University of Oxford. ‘I was working as an IT consultant, helping financial services firms build automation solutions. When my former clients started reaching out to me, even coming down to Oxford to recruit me, I realised the problem was significant enough to solve it systemically with a SaaS platform.’ 

At the ideation stage, Datox went through University of Oxford's incubator programme, which played a pivotal role in shaping the solution. Farrukh explained, ‘After graduating, I had an offer to officially register the IP and collaborate with the university, but I decided to go on my own.’ 

He also shared advice for aspiring entrepreneurs:  

The key to securing investment is validation. Bring your current and future clients into the conversation - it’s the most convincing evidence you can present to investors.

By working with Harper James, Datox has been able to clear the legal hurdles of their first investment round and build confidence with investors.

Future goals

Farrukh believes AI will transform the finance industry, predicting it will automate 50 to 60% of financial functions, streamlining processes and boosting efficiency. With their pre-seed funding securely in place, Datox is already planning to attract additional investment. Now a growing team of 15 spread across the country, including PhDs in AI, they are poised for significant expansion.  

The company will continue to innovate, leveraging its deep industry knowledge to expand its platform’s capabilities extending their jurisdictional coverage to the US market.