FinTech firm Hadrius nets $2m seed round for AI-powered SEC compliance

FinTech firm Hadrius nets $2m seed round for AI-powered SEC compliance

FinTech company, Hadrius, dedicated to innovating in the realm of SEC compliance, has recently announced their successful acquisition of a significant seed investment.

The company raised an impressive $2m in this latest funding round. Esteemed participants in the round were Y Combinator, Lynett Capital, Singularity Capital, Dorm Room Fund, Unpopular Ventures, as well as the founders of multiple renowned companies such as Arrived, SmartAsset, and FutureAdvisor.

Venturing into automating SEC compliance using AI, Hadrius has engineered a comprehensive platform that streamlines communication reviews, marketing assessments, archiving, trade monitoring, and more. By integrating AI, Hadrius ensures the entire process is streamlined and modernised.

Intentions for the newly acquired funds are clear. A significant portion will be channelled towards expanding the start-up’s compliance coverage across additional communication mediums. Moreover, there are plans to refine their “ComplianceGPT” model and to proliferate the variety and number of firms they can offer their services to. Hadrius envisions a future where financial firms operate in an effortlessly compliant state, as opposed to the current reality of constant, costly vigilance.

Having planted its roots on Wall Street, Hadrius was brought to life in 2023 by Thomas Stewart, Som Mohapatra, and Allen Calderwood. All three co-founders bring a rich history of experience to the table, having previously founded and scaled the SEC-registered robo-advisor, Quantbase.

Reflecting on the complexities of SEC compliance, Hadrius’ portfolio manager and chief compliance officer Som Mohapatra said, “SEC compliance is necessary for ensuring a mutually beneficial relationship between firm and client, but it requires dozens of hours of effort to meet those obligations, and that time is taken away from providing a better client experience in other ways. We’re very familiar with this after running our own asset manager, and Hadrius developed out of our first-hand experience with this challenge.”

Further, they commented on the current state of the industry saying, “We’re finding that, similar to our experience, the existing software and options aren’t effectively removing a lot of the time and pain of meeting these SEC compliance obligations. The industry has been largely stagnant for decades, and firms have been delighted to learn how much more effortless, time-saving, and cost-effective Hadrius is compared to alternatives.”

Historically, Hadrius has shown great potential and ambition, clearly illustrated by the talent of their engineering team, many of whom have a history with industry giants such as Google, Amazon, Chime, and Robinhood. This recent seed round of $2m is but a continuation of their journey, adding to their narrative of innovation and progress.

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