ValidMind, an AI and model risk management platform designed for the financial services sector, has successfully raised $8.1 million in seed funding.
The funding round was led by Point72 Ventures, with contributions from Third Prime, New York Life Ventures, AI Fund, Notion Capital, FJ Labs, Angel Invest, and Gaingels.
As the adoption of AI—particularly large language models—grows in financial services, it is becoming increasingly important to manage the associated risks. This is particularly vital considering rising consumer concerns and heightened regulatory scrutiny.
ValidMind addresses these challenges by providing a risk management platform that automates testing, documentation, and governance for AI and statistical models. By streamlining model documentation and automating the more labor-intensive aspects of model risk management (MRM), ValidMind aims to boost developer productivity, shorten the time to market for models, and enhance overall outcomes.
Jonas Jacobi, CEO of ValidMind, commented: “MRM teams in financial institutions are facing difficulties due to growing pressure from the business side to deploy AI solutions more rapidly, coupled with regulatory demands for compliance. This situation is exacerbated by time-consuming processes, a lack of suitable tools, and increasing model complexity. This funding will bolster our mission to help clients enhance the speed and efficiency of their MRM processes, accelerate the market launch of new AI solutions, and ensure compliance with global AI and model risk regulations.”