Datricks, an AI-powered financial integrity and compliance software startup, has successfully secured $15m in its latest Series A funding round.
According to Venture Beat, this substantial financial boost was spearheaded by the venture capital firm Team8, accompanied by significant contributions from SAP, a leader in global enterprise software, and the existing investor Jerusalem Venture Partners (JVP).
Established in 2019 by CEO Haim Halpern and chief technology officer (CTO) Roy Rozenblum, Datricks originally emerged from a consulting business boasting about 500 consultants. The company has transitioned into a software entity, focusing on “risk mining” – a novel, AI-driven technique that autonomously scrutinizes financial workflows across business systems including SAP, Oracle, and Salesforce. “We were a consulting company for many years, managing large projects. At some point, we decided to transition to a software company to achieve scale,” Rozenblum commented during a video call interview with VentureBeat earlier this week.
The newly acquired funds are earmarked for scaling Datricks’ operations and further enhancing its flagship product, the Datricks Financial Integrity Platform. This platform plays a crucial role in unveiling financial discrepancies, patterns of fraud, and compliance breaches, thus enabling companies to garner real-time insights and avert potential financial and reputational damages.
Datricks addresses a critical gap in financial risk management where traditional compliance and audit methods frequently miss marking potential risks. This inadequacy leaves enterprises prone to schemes that could entail losses amounting to millions. According to the Association of Certified Fraud Examiners, organizations globally lose roughly 5% of their annual revenue to fraud, tallying up to $4.7 trillion in losses.
Aiming to bridge this gap, the Datricks Financial Integrity Platform ensures continuous, real-time monitoring of all of an organization’s financial data. This comprehensive oversight promises enhanced accuracy and reduced false positives. “For CFOs, trusting the numbers is critical. One major challenge is fraud, especially internal fraud, which can distort financial data,” explained Rozenblum. “There are three main issues: fraud, compliance problems, and human errors. These can lead to significant financial losses for enterprises.”
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