Select Id Ltd. Secures £2m in Initial Funding Round

Select Id Ltd., a Stockton On Tees-based technology company operating a digital marketplace for certified digital identity providers, has successfully raised an estimated £2m in its initial funding round. The investment values the company at an estimated post-money valuation of £4.5m. This significant early-stage capital injection, with an allotment date of 7 April 2026 and a filing date of 17 April 2026, marks a crucial step for the firm as it aims to expand its platform within the UK market.

Founded on 16 February 2023, Select Id Ltd. addresses a critical need for UK businesses, particularly those in financial services, by offering a streamlined solution for accessing reusable digital identity services. The company's platform helps firms with customer onboarding, fraud reduction, and ensuring regulatory compliance in an increasingly digital landscape. Currently, the company operates with a team of two employees. As an early-stage venture, detailed revenue and profit/loss figures are not yet publicly available.

The £2m funding round represents the company's first disclosed capital raise, positioning it to further develop its digital marketplace and orchestration platform. This investment will likely be instrumental in scaling operations, enhancing its technological offerings, and expanding its reach to more UK businesses seeking robust digital identity solutions. In conjunction with the funding, Yogan Appalsamy was appointed as a director on 7 April 2026.

The funding round for Select Id Ltd. occurs within a dynamic UK venture capital landscape that has shown signs of strong recovery and strategic focus. The broader UK VC market experienced a significant rebound in 2025, with total investment reaching $23.6 billion, a 35% year-on-year increase and the first annual expansion in four years. This positive momentum continued into Q1 2026, with UK startups and scaleups raising $7.8 billion, a 60% increase compared to the same period last year.

Select Id Ltd. operates at the intersection of several high-growth sectors, including RegTech, FinTech, and B2B SaaS, all of which are attracting considerable investor attention. The UK RegTech market, in particular, is experiencing substantial growth, driven by increasing regulatory requirements and the demand for efficient compliance solutions. This market was valued at USD 521.08 million in 2024 and is projected to reach USD 2,400.87 million by 2033, demonstrating an impressive compound annual growth rate (CAGR) of 18.50% during 2025-2033. Projections further suggest the UK RegTech market could reach around $19.5 billion by 2026.

Digital identity solutions, such as those offered by Select Id Ltd., are increasingly vital for ensuring compliance, preventing fraud, and streamlining digital interactions, with financial and professional services accounting for 85% of their most common applications. The UK government is actively supporting the development and adoption of digital identity initiatives, laying out new legislation and frameworks aimed at reducing business fraud.

While the overall VC landscape shows growth, there has been a trend towards larger, late-stage deals, with "megarounds" contributing significantly to total capital raised. However, early-stage funding has also seen a "return to form," with an increase in first-time deals in 2025, suggesting continued investor confidence in nascent ventures. Despite this, the broader FinTech and RegTech sectors have faced challenges, including a slowdown in investment funding due to rising interest rates, making it more difficult for some startups to secure capital.

The investment in Select Id Ltd. underscores the ongoing demand for innovative B2B SaaS solutions that address complex regulatory and operational challenges. The SaaS sector in the UK is robust, comprising 19.7K companies, with 3.75K funded companies collectively raising $71.7 billion in venture capital. In Q1 2025, SaaS companies secured 21% of all deals and 29% of the total amount raised in the UK. The company's focus on digital identity within a regulated environment positions it to capitalise on these market trends, contributing to the UK's growing reputation as a hub for technology innovation, particularly in areas like AI and data analytics, which were standout sectors in global VC in 2025.