The company is led by founder Chris Reid, and currently employs 13 staff at its Burnley, UK head office.
The fund is managed by AXM Venture Capital, and is part of the £170m North West Fund, which is financed by the European Regional Development Fund and the European Investment Bank.
The investment will underpin Connect’s growth and support the management team to develop innovative and game changing systems for the UK childcare sector, it said.
David Smith, investment director at AXM Venture Capital, said, “We are delighted to support Connect’s expansion, and have strong expectations that the company will in the short term become the leading vendor in its market.”
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