Caspian Learning raised £1.5 million from investors including existing backer NorthStar Equity Investors, which contributed £800,000 from its Co-Investment Fund.

A further £400,000 came from new investor Hotspur Capital, as well as £300,000 from existing investor Enterprise Ventures, which focuses on the North of England and invested from its Coalfields Enterprise Fund and Rising Stars Growth Fund.

Graeme Duncan, CEO of Caspian, says the funding will allow the company to expand within its core market in the public sector, as well as target areas of the private sector where health and safety is crucial.

The company is also planning entry into the US late this year.

NorthStar Equity Investors first backed Caspian in 2004 with £60,000 from its Proof of Concept Fund. The business received a further £900,000 from Enterprise Ventures in 2006 and 2007.

Caspian’s clients include car manufacturer Volvo and the Ministry of Defence as well as German media group Bertelsmann, which owns publisher Random House.