Sphinx, a RegTech company developing browser-native compliance agents for financial institutions, has raised $7.1m in seed funding as it looks to scale its technology across banks and FinTechs.
The funding comes as financial institutions face rising regulatory demands and growing compliance workloads, making it increasingly difficult to manage anti-money laundering (AML), know your customer (KYC), and know your business (KYB) processes without expanding headcount or adding operational cost.
Founded by Alexandre Berkovic and Chrisjan Wüst, Sphinx builds compliance agents that operate directly inside the software tools already used by compliance teams. Rather than requiring new dashboards or system integrations, its agents work within case management platforms, third-party portals, PDFs, email, and internal dashboards, replicating the tasks typically carried out by human compliance analysts.
The product is designed to review alerts, conduct AML and KYB checks, gather supporting research, draft requests for information (RFIs), and document decision-making. Each action is recorded in a regulator-ready audit trail intended to provide institutions with a complete and defensible record of compliance decisions.
According to the company, Sphinx’s browser-native approach allows teams to deploy the product within days, without replacing existing systems. This architecture has also enabled Sphinx to operate across multiple regions from launch, adapting to local regulatory requirements and internal workflows.
Sphinx said its agents are already being used in production by banks, public companies, and fast-growing FinTechs. The company claims its technology has processed millions of alerts and hundreds of thousands of cases, helping customers clear long-standing backlogs and reduce manual review volumes.
Among its customers is Equals Money, which reported a 94% reduction in false positives while identifying a greater number of genuine risk cases. Sphinx said several institutions using its platform have expanded internationally without increasing compliance staff, reducing operational costs by up to four times.
The seed round was led by Cherry Ventures, with participation from Y Combinator, Rebel Fund, Deel Ventures, and Singularity Capital. The funding will be used to scale Sphinx’s agent-based compliance workforce and support further customer growth.
Sphinx co-founder and CEO Alexandre Berkovic said, “Compliance today is mostly human glue between systems that were never designed to work together. Sphinx takes on that work directly so analysts can focus on the judgment calls — and institutions finally get a complete, defensible record of how every decision was made.”
Cherry Ventures founding partner Filip Dames said, “Sphinx isn’t just a software, it’s critical operational infrastructure that meets teams where they are: in their systems, procedures, and day-to-day reality. Very few products can function inside that level of complexity. That’s what’s driving such rapid adoption across banks and fintechs.”
The company said it is targeting a share of the more than $200bn spent globally each year on compliance teams and outsourced review services, arguing that financial institutions no longer need additional software layers but technology that can directly perform the work.
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