Tech for good startup HACE, based in Manchester, has successfully raised £450,000 in its pre-seed funding round, surpassing its original target by 20%.
HACE is dedicated to harnessing technology to sustainably eliminate child labour in global supply chains. This funding round was led by Manchester Angels and included co-investments from GC Angels, Ada Ventures, Found Capital, and other individual angel investors.
The capital will be used to further develop HACE’s flagship product, the Child Labour Index. This innovative tool empowers asset managers, wealth managers, and institutional investors to proactively identify child labour risks within their portfolio companies. Through HACE’s Stewardship Toolkit, investors can engage effectively with businesses to drive positive change in their supply chains.
Powered by AI, the Child Labour Index provides three distinct ESG risk scores focused on child labour, offering investors crucial insights into the level of risk across their portfolios. The funding will enable HACE to continue the product’s development by advancing its Proof-of-Concept and Pilot Phases, in collaboration with asset managers known for their strong commitment to sustainable investing.
In addition to enhancing the Child Labour Index, the funding will support the further development of HACE’s Stewardship Toolkit, which is being built and validated by leading academics and industry experts. This toolkit is designed to facilitate investor engagement with portfolio companies on the specific risks related to child labour.
HACE will also expand its Independent Business Advisory Board and continue research into child labour as both a business and investment risk.
Eleanor Harry, CEO of HACE: Data Changing Child Labour, said:
“Securing this funding during challenging economic times is a remarkable achievement for HACE. It reflects the growing recognition of child labour as a critical issue, and the essential role technology will play in addressing it. We are deeply grateful to our investors, partners, and the Manchester ecosystem, whose support has been pivotal in our growth."
HACE has also announced a partnership with Equal Experts, a software provider that will assist in further developing its technology. The company has strengthened its leadership by appointing Eric Solomons as Chair of the Board, with Paul Inella, CEO of Tetrid Digital Integrity, and John Freeman, Senior Director at Johnson & Johnson, also joining the board.
With a growing team, including the recent appointment of Chris Turpin as Business Partner, HACE continues to drive progress towards eliminating child labour. Chris brings 27 years of experience in financial services and will focus on fostering better engagement between investors and companies to address this critical issue.
Founded in 2020, HACE has previously received £55,000 in grant funding from the Greater Manchester AI Foundry and the University of Cambridge. Initially generating revenue from its early services, HACE has since pivoted to focus on developing the Child Labour Index.
With 160 million children globally trapped in child labour, HACE is committed to leveraging data and technology to help eradicate this growing risk to human rights and ESG standards.