ValidMind, a leading next-generation AI and model risk management platform for financial services, announced it had raised $8.1 million in a seed funding round led by Point72 Ventures. Third Prime, New York Life Ventures, AI Fund, Notion Capital, FJ Labs, Angel Invest, and Gaingels also participated.
This funding round advanced ValidMind’s go-to-market plans and established it as a long-term partner to its customers in financial services. Including this funding round, ValidMind raised a total of $11.1 million.
ValidMind provides a fit-for-purpose AI risk management solution and is the most efficient solution for organizations to automate testing, documentation, and model risk governance for AI and statistical models. By automating model documentation and the complex parts of MRM, ValidMind helps increase developer productivity, reduce model time to market, and improve MRM outcomes. This enables organizations to focus on what matters most – deploying AI-backed solutions with integrity and transparency.
ValidMind has also added a new member to its Advisory Board. Murat Doganaksoy, former Model Risk Officer at First Republic Bank, will share more than 20 years of MRM expertise in this capacity. As a member of the ValidMind Advisory Board, Doganaksoy will share his expertise on ValidMind’s product development and the company’s broader strategy. Doganaksoy’s understanding of the model risk management field will help shape ValidMind’s solution as an end-to-end AI and Model Risk Management solution that reduces the inherent complexity that first and second lines of defense face in their day-to-day operations.
KEY QUOTES:
“The MRM teams at financial institutions are struggling to keep up amid increased pressure from the business to deploy more AI solutions faster and from regulators to ensure compliance, relying on an already time-consuming process due to a lack of fit-for-purpose built tools and increased model complexity. This funding strengthens our commitment to help customers increase the speed and efficiency of their MRM processes, reduce time-to-market for new AI solutions, and ensure compliance with global AI and model risk regulations.”
- Jonas Jacobi, CEO and Co-founder of ValidMind
“We back companies that provide new fintech infrastructure to foster innovation, and ValidMind is working to do just that. AI has the potential to truly disrupt financial services, and we believe ValidMind is in a strong position to ensure these models comply with current and future regulations. We’re excited to be part of its growth journey.”
- Tripp Shriner, Managing Partner at Point72 Ventures
“Model Risk Management (MRM) automation is pivotal for efficiency and compliance in the rapidly evolving AI regulatory space. ValidMind’s innovative platform facilitates seamless communication, development, and validation, ensuring rigorous adherence to regulatory standards. I’m excited to work with ValidMind to support their dedication to enhancing customers’ MRM program, promising a standardized, auditable process that fosters effective challenges and regulatory compliance.”
- New board member Murat Doganaksoy, who is a former Model Risk Officer at First Republic
