Manchester-based startup zally is set to relocate its headquarters to San Francisco after securing £2.8 million in a bridge funding round as it gears up for a US funding initiative. The behavioural AI company, backed by prominent angel investors including executive chairman David Webb and Web3 expert Dan Hibell, is preparing for its next phase of growth in the United States.
Founder Patrick Smith disclosed that the funding round was oversubscribed by 40%, attracting investments from both Manchester Angels and London-based investors. Webb, who joined zally as chairman 18 months ago and recently became executive chairman, previously founded 6point6, which was acquired by Accenture in December 2023, coinciding with zally’s £1.6 million pre-seed funding completion.
Smith emphasised the strategic importance of the move to San Francisco, stating, “Our headquarters are now in San Francisco. It puts us at the heart of the AI ecosystem and closer to the global funding and commercial networks we need to scale.” However, he assured that Manchester remains integral to the company, highlighting its role in the company’s origins and ongoing operations.
zally is focused on advancing ‘behavioural AI’, starting with its continuous authentication solution, zAuth, which identifies users based on their interactions with smartphones. The company is set to initiate a seed funding round in the US next month, having secured design partners in financial services, infrastructure, and security to pilot its authentication product.
Smith remarked on the company’s progress, stating, “Momentum around zally has been phenomenal in recent months. We’re not just building a company, we’re defining a new scientific field of AI.” He added that the upcoming phase involves scaling product deployments and furthering research into behavioural AI.
