Prodsight, an Edinburgh-based software firm that specialises in artificial intelligence (AI) powered customer feedback technology, has raised £400,000 in pre-seed funding.

The company’s platform uses AI to identify and track the most important issues in customer conversations by analysing topics and sentiment. The insights provided by this analysis can help prioritise which product features or experiences need to be improved to boost customer satisfaction and reduce churn.

Techstart Ventures led the pre-seed funding round with participation from TrueSight Ventures and other private investors. The Royal Society of Edinburgh and Scottish Enterprise have also provided support to the growing startup.

Mark Hogarth, partner at Techstart Ventures, said: “Most companies are sitting on a growing pile of crucial customer feedback, but they lack the tools to actually make sense of it. We love that Prodsight unlocks this trapped value for customers by extracting actionable insights from customer feedback channels, allowing users to make the product changes that will matter the most.”

This investment will be used to grow the company’s remote team, which has members based in Edinburgh, London and Gdańsk. It will also expand the number of platforms its tech integrates with in 2020 to help users aggregate their customer feedback across all touch-points.

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Sahil Makadia of Catapult, a customer of Prodsight, said: “We had no statistics on what users were saying in our Intercom conversations so we used our intuition when reporting on customer issues.

“With Prodsight, we can easily track customer issues in real-time, assess the impact and prioritise the right improvements.”

Tadas Labudis, founder and CEO of Prodsight, said: “Companies manage 3x more data today than they did 5 years ago with billions of customer conversations occurring every year. This is where our AI platform is pivotal, cutting through the noise and telling users exactly which issues are causing the most friction.

“The business has been growing at a rapid pace in the last year and I’m delighted to receive this latest round of funding to supercharge our efforts in 2020 and beyond.”