AI-based compliance platform Sedric has secured $3.5m from a seed funding round led by StageOne Ventures.
The funding round also saw backing from former BlackRock managing director James Kong, co-founder of Chorus.AI Micha Breakstone and co-founder of Forter and Homewoard Ventures Alon Semesh. All of these investors will serve as advisors to Sedric.
Sedric enables FinTech companies to bolster consumer protections and comply with changing global regulatory requirements. The company claims its AI-powered platform monitors every customer engagement and auto-detects high-risk interactions to ensure compliance.
Compliance spending by FinTechs is growing, with total spend increasing by more than 200% over the past two years. However, Sedric noted consumer complaints against firms in the sector increased by almost 180% in the first half of this year compared to the year prior.
The company said it plans to use its new funding to support its global expansion and onboard its growing base of new FinTech customers.
Sedric co-founder and CEO Nir Laznik said, “The cost and reputational damage from non-compliance is a top risk for today’s growing fintech industry. Regulators around the world are racing to add more rules to protect customers, requiring continuous monitoring and real-time implementation for FinTechs to navigate and grow. We are thrilled to expand our services globally and provide FinTechs with an advanced compliance platform that significantly lowers risks and helps them scale.”
StageOne Ventures principal Nate Meir added, “The global fintech industry is expected to reach $190 billion in 2026, and Sedric is designed to assist companies in the fintech industry aiming to protect their customers and brands. With significant increases in regulatory scrutiny around the world, and constantly evolving financial regulation, Sedric gives FinTechs an advanced platform to manage changing regulations quickly and easily. We are excited to support Sedric’s global expansion and mission to support FinTechs around the world.”
Copyright © 2021 FinTech Global