Sedric AI, a provider of artificial intelligence (AI) based compliance solutions for financial institutions, has successfully closed an $18.5m Series A funding round.
This investment round was led by Foundation Capital with contributions from Amex Ventures and existing investors including StageOne Ventures and The Garage. The total amount raised by Sedric AI to date now stands at $22m. The funds will support the expansion of Sedric’s AI lab in Tel Aviv and enhance its global market presence.
The financial services sector is increasingly integrating technologies like Generative AI (Gen AI) to broaden their service offerings, while also facing heightened compliance risks. Regulatory bodies are intensifying their scrutiny of financial institutions to ensure proper safeguards are in place for all customer interactions, including those related to communications and marketing.
The evolving regulatory landscape and the expanding scope of financial services are driving demand for advanced compliance solutions. Reports indicate that global compliance costs in the financial services sector amount to $206bn, representing 12% of global research and development spending.
Sedric AI provides compliance officers with comprehensive oversight of customer interactions across various channels, enabling the identification and management of deviations from established policies and guidelines. The platform’s technology facilitates prompt corrective actions, reducing the need for manual reviews.
Sedric’s technology is supported by the industry’s first compliance-focused large language model (LLM), which offers a robust platform for managing compliance risks. Initially employing sector-specific models, Sedric’s system adapts to individual organisational needs, automating policy enforcement, detecting deviations, and streamlining audit processes.
Sedric AI co-founder and CEO Nir Laznik said: “For financial institutions, compliance and growth can be seen as two competing priorities. 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 AI has experienced a fivefold increase in revenue over the past year and now serves a growing clientele in the US and Europe, including global lenders, banks, trading platforms, and insurers.
Foundation Capital general partner Charles Moldow said: “Sedric’s AI compliance platform addresses a critical industry need as regulatory requirements become more stringent and complex. Nir, Eyal, and the Sedric team have developed a forward-looking solution that is significantly more effective, faster, and efficient than traditional methods.”
Sedric AI’s existing investors also include Gefen Capital, Skywell Capital, Secret Chord, and K20 Fund.
