This UK startup using AI for compliance just raised millions
A UK tech startup which uses artificial intelligence to ensure compliance rules are followed by financial firms has raised millions of pounds from top investors.
ComplyAdvantage has raised $8.2m (£6.7m) in a series A round of funding led by Balderton Capital to fuel expansion into the lucrative US market.
The regulatory tech firm, or regtech (an offshoot of fintech), uses AI and machine learning to monitor risk and already boasts 200 clients.
Read more: What Brexit? UK startup funding has bucked a global slowdown
"In compliance, we see lots of entrants with a new workflow, or user-interface tool that is just repackaging the same data. ComplyAdvantage is doing something different, by developing its own proprietary global data set of individuals and companies that pose a threat," said Balderton general partner Tim Bunting.
Regtech is an increasing focus for fintech startups amid increasing regulation in the wake of the financial crisis and the introduction of KYC (know your customer) and AML (anti-money laundering) rules. It is also a focus of the Financial Conduct Authority as part of its fintech sandbox and Project Innovate schemes.
Read more: Commerzbank ploughs more cash into London fintech startup Iwoca
ComplyAdvantage founder Charles Delingpole, who also co-founded fintech startup MarketInvoice, said: "This investment is testament to the incredible things the team has achieved so far and we look forward to taking our business to the next level with Balderton’s support and expertise.”
The firm will open an office in New York this week and already employs 50 people.
The investment comes as new figures reveal that Brexit had a limited impact on the amount of venture capital cash being put into the UK's tech startups.