Droit, a RegTech company providing companies with intelligent decision-making tools for compliance, has raised $23m in its Series B round.
Pivot Investment Partners and UBS served as the lead investors. Existing Droit backer Goldman Sachs also joined the round.
With the funds, Droit is looking to expand into wealth management through the development of new products, including cross-border and product suitability. It claims this ‘natural extension’ of its Adept platform will allow financial institutions to benefit from transparent decision-making infrastructure deployed for capital markets.
In addition to the expansion into WealthTech, the Series B capital will help Droit expand its product suite, including its position reporting, transaction reporting and pre-trade product suite. Funds will also be used to build-out new cloud-based services.
Founded in 2012, Droit’s flagship product Adept platform supplies clients with a consensus view as how rules and regulations are applied. To verify decisions, Adept generates a logic model with traceable pathways linked to the original source text. This transparency gives enhanced clarity, increased operational efficiencies and a defendable process.
The platform is used for client readiness, which allows firms to understand their commercial possibilities and validate readiness to engage. Its technology is also used for point of trade, transaction reporting and position reporting.
It is used by the world’s largest financial institutions for pre- and post-trade decision-making and auditability, Droit claims.
Droit founder and CEO Brock Arnason said, “This year marked Droit’s 10-year anniversary and we greatly appreciate the support from our investors and their confidence in our future success. This funding will enable us to accelerate the innovation of our new product lines.
“We are also excited to join UBS Next’s portfolio of fintech companies and look forward to partnering with them on building out our wealth management capabilities.”
Over the past two years, Droit has commercialised four new products and increased the size of its team by nearly 70%. The company has also grown its international footprint, establishing a presence in Singapore to support existing clients and build new relationships in the region.
The company’s Series A round closed on $16m in 2016.
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