The round was led by Foundation Capital with Amex Ventures joining as an investor
NEW YORK, Sept. 5, 2024 /PRNewswire/ — Sedric AI, (“Sedric”), the pioneering compliance-dedicated AI platform for financial institutions, today announced it has closed a $18.5 million Series A funding round to further its efforts to transform compliance operations across the industry. The latest funding round, led by Foundation Capital with participation from Amex Ventures, brings the total amount raised by the company to date to $22 million. The funds will be used to grow Sedric’s AI lab in Tel Aviv and expand its global go-to-market teams.
Financial institutions are embracing technologies like Gen AI to expand their product offerings, understanding that emerging technology comes with increased potential compliance risk. Regulators are applying more focus and expectations on financial institutions to ensure that those leveraging Gen AI are safeguarding their customers across all customer touchpoints, including communications and marketing.
The current regulatory environment, coupled with the growing scope of financial services, is driving demand for innovative solutions to help compliance officers execute their organization’s policies, guidelines, and standards. Studies show that the current cost of compliance for financial services worldwide is US$206 billion, equivalent to 12% of global research and development expenditures.
Sedric empowers compliance officers with a holistic view of their customer touchpoints across multiple channels to flag deviations from their established compliance policies and guidelines. Sedric’s technology enables companies to quickly take corrective actions without the cost and burden of manual review.
This technology is powered by the financial services industry’s first compliance-dedicated large language model (LLM), providing organizations with a mature, enterprise-ready platform to oversee and manage compliance risks. While starting with vertical-specific battle-tested models, Sedric is a learning system. Its models are customized to an organization’s unique requirements, automating policy enforcement, mitigating deviations, and streamlining audits.
“For financial institutions, compliance and growth can be seen as two competing priorities,” said Nir Laznik, co-founder and CEO of Sedric. “With our compliance LLM, we turn risk into a growth opportunity. Enterprises now have an opportunity to implement a proven, bank-ready solution that is successfully operational and already widely adopted across the financial services industry.”
Sedric’s revenue has increased fivefold over the last 12 months. The company has a growing base of customers in the U.S. and Europe, including global lenders, banks, trading platforms, and insurers.
“Sedric’s AI compliance platform fills a critical industry need as regulatory requirements become more stringent and complex,” said Charles Moldow, General Partner at Foundation Capital. “Nir, Eyal, and the Sedric team have developed a forward-looking solution that is 100 times more effective, faster, and efficient compared to traditional methods. This is a rare ‘better-faster-cheaper’ compliance solution for financial institutions.”
Sedric’s existing investors include StageOne Ventures, The Garage, Gefen Capital, Skywell Capital, Secret Chord, and K20 Fund.
“I believe that GenAI is going to dominate all aspects of the financial sector, yet in my experience, it’s a challenge to ensure it’s being used responsibly,” said Eyal Peleg, co-founder and CTO of Sedric. “Sedric enables financial institutions to unlock the potential of these powerful tools safely and within regulatory boundaries. Our platform puts guardrails and protections in place to help financial institutions adopt AI in a private, observable, and reliable way.”
About Sedric AI
Sedric developed the first dedicated compliance large language model (LLM) for financial services. Its AI-driven compliance platform transforms compliance operations and empowers compliance officers with a holistic view of risk across every integrated customer touchpoint. With offices in New York and Tel Aviv, the company provides financial services firms with a proven, enterprise-ready solution that is customized to an organization’s unique requirements, enabling organizations to turn risk into a growth opportunity. The company was established by Nir Laznik and Eyal Peleg in 2020 and has a growing base of customers in the U.S. and Europe. For more, please visit: https://www.sedric.ai/
About Foundation Capital
Foundation Capital is an early-stage venture firm founded in 1995. Our enterprise, fintech, consumer, and crypto investments—including Netflix, Lending Club, Sunrun, TubiTV, Chegg, Solana, Stripe, and Uber —have reinvented industries and defined new markets. For a quarter of a century, the firm has endured, evolved, and thrived, with over $5B assets under management, 33 IPOs and ICOs, and 80+ acquisitions to our name. Building companies is in our bones. For more info, visit: foundationcap.com.
Media contact:
Sivan Ron
sivan@lobellocommunications.com
SOURCE Sedric AI
