The Bank of Ireland Kernel Capital Growth Fund (NI) has invested £1m in Belfast-based Automated Intelligence Ltd.
The company has raised £1.5m in total in its latest funding round, with the rest of the money coming from an existing private investor.
AI provides enterprise software solutions and has over 100 national, central and local government customers. It is also a Microsoft Gold customer.
The company, which currently employs 65 people, said the new funding will enable it to expand into new geographical markets.
In line with new requirements which come into effect next year, AI's software automatically enforces appropriate governance across all content to reduce cost, legal and reputational risk while improving organisational productivity at the same time.
The Bank of Ireland Kernel Capital Growth Fund (NI) was designed to help SMEs in Northern Ireland to accelerate their growth.
Invest Northern Ireland has committed £15m of funding to this fund which is part financed by the European Regional Development Fund under the EU Investment for Growth and Jobs Programme 2014-2020.
The company's chief executive Mark Godfrey said the new European-wide data protection regulation, which comes into force (GDPR) next year, will be the biggest data protection change in almost 20 years.
"This is an exciting time for AI when we are seeing an unparalleled level of interest in our GDPR compliance solutions," the CEO said.
"This significant investment will allow us to market these world-leading products and services to organisations of all sizes who need to achieve GDPR compliance," he added.