small cap report july 2025 article
Small Cap Stocks to Buy in July 2025
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29 Jan 25: Cykel AI PLC (LSE: CYK) announces the successful integration of DeepSeek R1, a breakthrough open-source large language model, across its digital worker platform. The integration is expected to reduce the Company's future AI infrastructure costs by up to 96%, with DeepSeek R1 costing just 4% of comparable model rates while matching or exceeding their performance.
Ewan Collinge, Co-Founder & CEO of Cykel, commented: "Just as cloud computing made processing power abundant and fundamentally transformed software, DeepSeek R1 makes AI reasoning abundant and will transform digital workers. The ability to access such sophisticated reasoning capabilities at just 4% of traditional costs unlocks entirely new use cases for our digital workers.”
Following the successful deployment of Lucy, their first automated digital worker, on Dec 11ᵗʰ 2024 Cykel announced the development of two new autonomous AI agents: Eve, a sales specialist, and Samson, a research analyst. This strategic expansion is expected to position Cykel AI to capture a significant share in the rapidly growing AI market.
This development comes at a pivotal moment in AI's evolution, where autonomous digital workers are emerging as a transformative force in the $800 billion AI market projected for 2030.
This development comes at a pivotal moment in AI's evolution, where autonomous digital workers are emerging as a transformative force in the $800 billion AI market projected for 2030.
Once completed, these autonomous digital workers are expected to make advanced AI technology accessible to businesses of all sizes, delivering productivity gains while significantly reducing operational costs.
When Eve & Samson are fully deployed, Cykel AI will be one of the first to offer Automated Digital Workers across 3 sectors; Recruitment, Sales and Research, with many other AI Agents in the pipeline.
On 27th November Cykel announced the deployment of 'Lucy' a digital worker created specifically to target the $750 Billion global staffing market². The development of their first Automated Digital Worker is a potential game changer for Cykel AI, being the first step towards an off the shelf AI solution for the recruitment industry, significantly simplifying and shortening the sales process.
Automated Digital Workers differ from normal software tools - they learn and improve over time like humans and can be deployed 24/7, providing an enormous cost saving potential for businesses.
A technology tipped to be at the forefront of recent AI advances as we head into 2025 and puts Cykel amongst some of the most cutting edge tech leaders such as AiSDR, Artisan, and 11x.ai (see case study below) which could see the company gain significant buoyancy from the anticipated rise in digital worker requirements in 2025.
The space is evolving at an unprecedented pace, and Cykel AI appear to be hidden front runners with deep first mover advantage, primed to potentially emulate the mammoth growth of their peers.
11x.ai are a developer of AI powered sales reps approaching £10M in Annual Recurring Revenue and operating in the Automated Digital Worker space alongside Cykel.
In September this year they secured $50Million in Series B funding, following a $24Million Series A earlier this year.
This values the company at circa $350Million as of September 2024, according to sources acquired by TechCrunch.
11x.ai focus primarily on digital workers trained on sales based models, however they are looking to introduce recruitment focused workers in 2025. Something Cykel AI appear to have beaten them to the punch on.
The startup has been valued on a 35x multiple and similar 'digital worker' focused competitors have received valuations based on multiples upwards of 50x
Argo Blockchain Founder and Cykel Executive Chairman, Jonathan Bixby stated "AI is the largest growth market in the tech industry I have ever seen".⁵
We only have to look at the growth of software companies such as Zapier Inc (recently valued at $5B according to Yahoo Finance.⁶) to get a gauge of the sheer scale of the market. Giants with deep pockets like Amazon, Microsoft and Google are putting their chips firmly behind companies focusing on AI development.
Google provided initial upfront funding of $300M to AI Startup, Anthropic; Amazon have now followed suit with upfront funding of $1.25B, pledging to invest up to $4B. Tech Crunch have now put a valuation on Anthropic of $5B.⁷ The technology that Anthropic develops focuses on interfacing via a chatbot similar to ChatGPT.(Recently valued at an incredible $86B.⁸)
Adept; another AI-centric startup, has already raised $350M from the likes of Microsoft and NVidia to take existing software and configure it in a way that allows humans and computers to work together creatively to solve problems. This ingenuity has resulted in Forbes reporting a valuation for Adept of “at least $1B”.⁹
Recent RNS announcements have come thick and fast for Cykel, with a growing number of strategic partnerships being won and most notably the release of 'Lucy', Cykel's Automated Digital Worker, tasked with cutting costs in half for recruitment agencies and in-house hiring teams.
If 2025 is the year of the Digital Worker then Cykel AI are already aptly placed to compete within an exciting and fast growing subset of the Artificial Intelligence market.
Software business developing advanced artificial intelligence (“AI”) products.
Provides software technologies for the rail, traffic data, and wider transport industries.
Email, marketing automation, and customer engagement service provider
Development and delivery of remote monitoring technologies and services
In the ever-evolving universe of artificial intelligence, certain opportunities emerge that have the potential to transcend the ordinary and redefine the industry as a whole. Such an opportunity seems to be on the horizon as the investment world hears rumblings of a new cutting-edge AI tech outfit that recently listed as the first pure play AI Stock in the UK.
On deeper inspection, it's not just another ‘smart money’ proposition either; it's an intriguing journey into the future of where AI is heading in the near term. As an avid follower of the sector, I am thrilled to introduce you to this extraordinary prospect - a company that could very well hold the promise of rewriting the book on human-AI interaction.
[1] https://www.investegate.co.uk/announcement/rns/cykel-ai--cyk/integration-of-deepseek-r1/8710522
[2] https://www.globenewswire.com/news-release/2024/08/20/2932953/0/en/Staffing-and-Recruitment-Market-Worth-2-031-34-Billion-Globally-by-2031-Exclusive-Report-by-The-Insight-Partners.html
[3] https://clearcapitalmarkets.co.uk/cykel-broker-note-jonathan-plant/
[4] https://techcrunch.com/2024/09/30/11x-ai-a-developer-of-ai-sales-reps-has-raised-50m-series-b-led-by-a16z-sources-say/
[5] https://www.youtube.com/watch?v=MIh--XRM50k
[6] https://finance.yahoo.com/news/zapier-ceo-rides-remote-5b-200654269.html
[7] https://fortune.com/2023/09/25/anthropic-ai-startup-4-billion-funding-amazon-investment-big-tech/amp/
[8] https://www.ft.com/content/e4ab95c9-5b45-4996-a69e-46075d6428e5
[9] https://techcrunch.com/2023/03/15/adept-a-startup-training-ai-to-use-existing-software-and-apis-raises-350m/amp/
* 5 Star rating was awarded by analyst J. Plant based on his analysis of the recent share price and his opinion on its's potential
Nothing in the above article should be considered investment advice.
Small Cap or Aquis listed companies can be highly illiquid making them difficult to sell at the quoted price, and in some cases, it may be difficult to sell them at any price. Small Cap or Aquis listed companies can have a large bid / offer spread which means there could be a large difference between the buying and selling price. Companies listed on the Aquis market can be highly volatile and are considered high risk speculative investments. The value of your investment can go down as well as up, your Capital is at risk you may not get back the amount invested. Please ensure that you fully understand the risks involved. If in any doubt, please seek independent financial advice. This document is published by Clear Capital Markets and does not constitute a solicitation or personal recommendation for the purchase or sale of investment. The investments referred to may not be suitable for all investors. Any data or views given should not be construed as investment advice. Every effort is made to ensure the accuracy of the information, but no assurance or warranties are given.
Clear Capital Markets Corporate Broking acts as a Corporate Broker to Cykel AI Plc and holds warrants and shares in the company. Employees and/or directors of Clear Capital Markets may deal in shares of Cykel AI Plc for their own personal accounts. These scenarios may give rise to a conflict of interest where Clear Capital Markets also provides clients with an advisory service for transactions involving Cykel AI Plc. The firm has established Conflicts of Interest (“COI”) and Personal Account Dealing (“PAD”) policies to mitigate the risk of a conflict causing damage to the interests of its clients. The measures taken include requiring internal review and approval from the compliance department for employees or directors entering into personal transactions involving Cykel AI Plc. The COI and PAD policies are available upon request. Clear Capital Markets is required to disclose this conflict.
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