Sedric AI, a leading innovator in AI-driven compliance solutions for financial institutions, announced today that it has successfully secured $18.5m in Series A funding.
The funding round was spearheaded by Foundation Capital, with significant contributions from Amex Ventures and further support from existing investors including StageOne Ventures and The Garage.
This investment brings Sedric AI’s total capital raised to $22m.
The company is at the forefront of integrating advanced technologies like Generative AI into financial services, aiming to enhance product offerings while managing compliance risks. With financial regulators increasing their scrutiny, particularly on institutions utilising emerging technologies, there’s a growing emphasis on the need for robust compliance frameworks.
The newly acquired funds are earmarked for expanding Sedric’s AI lab in Tel Aviv and enhancing its global market reach.
Sedric AI’s platform provides a comprehensive view of customer interactions across multiple channels, enabling quick identification and correction of any deviations from compliance standards. Utilizing the industry’s first compliance-dedicated large language model (LLM), Sedric offers a scalable solution that automates policy enforcement, mitigates risks, and simplifies the auditing process.
Nir Laznik, co-founder and CEO of Sedric AI, emphasized the dual benefits of compliance and growth, “For financial institutions, compliance and growth can be seen as two competing priorities.
“With our compliance LLM, we turn risk into a growth opportunity. Enterprises now have an opportunity to implement a proven, bank-ready solution that is successfully operational and already widely adopted across the financial services industry.”
The investment in Sedric AI not only underscores the potential of AI in transforming compliance but also reflects the company’s significant growth, having increased its revenue fivefold over the past year. With a robust customer base spanning the U.S. and Europe, Sedric continues to lead in providing cutting-edge compliance solutions to global lenders, banks, trading platforms, and insurers.
Eyal Peleg, co-founder and CTO of Sedric, also shared his insights on the pivotal role of AI, “I believe that GenAI is going to dominate all aspects of the financial sector, yet in my experience, it’s a challenge to ensure it’s being used responsibly.
“Sedric enables financial institutions to unlock the potential of these powerful tools safely and within regulatory boundaries. Our platform puts guardrails and protections in place to help financial institutions adopt AI in a private, observable, and reliable way.”
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