Digital Reasoning, which enables clients to use data to detect potential threats, has closed a $40m Series D round.
The round, which was lead by Lemhi Ventures and Nasdaq, also featured participation from prior investors Goldman Sachs Group and HCA Holdings. Digital Reasoning has now raised more than $73m since launching in 2000, signalling the global interest in cognitive computing, machine learning.
Back in October 2014, Digital Reasoning closed a $24m Series C round, with commitments coming from Goldman and Credit Suisse. The following year, it reeled in $5m from HCA.
With technological advances in learning algorithms disrupting traditional software markets, Digital Reasoning has been able to create valuable new tools for knowledge workers and data scientists across key industry sectors, which enhance customer outcomes, prevent or reduce criminal behaviors and change the way illnesses are diagnosed and treated.
The company claims to have the ability to ensure compliance , maintain security, and accurately analyse information quickly.
The new Investment will be used to accelerate R&D in advanced audio and image analysis, data science and new solutions across enterprise, government, and health care.
Tim Estes, CEO of Digital Reasoning, said: “This latest funding round accelerates continued innovation by enabling us to implement state-of-the-art Deep Learning technology into all of our offerings, deliver the world’s leading holistic surveillance solution in partnership with Nasdaq, add talented team members to pursue life saving analytics in health care with HCA and others, and drive novel Data Science initiatives at the world’s most valuable companies.”
As a result, Tony Miller, managing partner at Lemhi Ventures, will join Digital Reasoning’s board as a director, and Adena Friedman, president and COO at Nasdaq, will join Digital Reasoning’s board as an observer.
Miller added: “We recognize just how disruptive Digital Reasoning’s cognitive computing approach is, and are confident they have the right team to truly help providers, payers, and patients fundamentally make better informed decisions in less time..”
Last year, there was more than $742.7m invested in RegTech companies globally according to data by FinTech Global. The capital was invested across 85 deals, with Q4 2015 being the most active with 25 deals completed. Despite the last quarter having the largest number of deals, Q3 2015 saw the most invested, with $248m spread across 21 deals.
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