Datricks gets $15M for AI-powered compliance and risk platform

Datricksan AI-powered financial integrity and compliance software startup headquartered in Tel Aviv, Israel has raised $15 million in a Series A funding round led by venture capital firm Team8.

The investment was also participated by SAP, a global software giant, and by existing investor Jerusalem Venture Partners (JVP).

Datricks was co-founded in 2019 by CEO Haim Halpern and Chief Technology Officer (CTO) Roy Rozenblum as an outgrowth of their previous consulting activities and specializes in risk mining, an AI-powered approach that autonomously analyzes financial workflows in enterprise systems such as SAP. , Oracle and Salesforce.

“We have been a consultancy firm for many years and have managed large projects with approximately 500 consultants. At some point we decided to transition to a software company to gain scale,” Rozenblum said in a video call with VentureBeat earlier this week.

The Datricks Financial Integrity Platform platform is designed to uncover financial anomalies, fraud patterns and compliance issues, providing companies with real-time insights and the ability to prevent potential financial and reputational damage.

The new capital will help Datricks scale its operations and further develop its platform, helping large enterprises remain secure and compliant in an increasingly complex global and national regulatory environment.

Addressing a critical gap in financial risk management

Organizations around the world lose an estimated 5% of their revenue to fraud every year, which amounts to $4.7 trillion in losses, according to the Association of Certified Fraud Examiners.

Traditional compliance and audit processes often fail to identify these risks, leaving companies vulnerable to settlements that can cost millions.

Datricks Financial Integrity Platform aims to close this gap by providing continuous, real-time monitoring of 100% of an organization’s financial data, ensuring greater accuracy and fewer false positives.

“For CFOs, confidence in the figures is crucial. A major challenge is fraud, especially internal fraud, which can distort financial data,” Rozenblum said in an interview with VentureBeat. “There are three main problems: fraud, compliance issues and human error. These can lead to significant financial losses for companies.”

Datricks tackles these problems by automating the process of financial integrity management. It is built around three core components:

1. Autonomous process detection: Datricks continuously and autonomously analyzes an organization’s financial processes without the need for manual input. This allows it to understand the business context and map how these processes work. “We track how processes actually happen, monitor them in real time, learn how they work and then pinpoint the problems – showing where the anomaly is and finding the root cause,” Rozenblum explains.

2. Integrity exposure detection: Datricks’ AI identifies issues and anomalies across all business transactions and analyzes them in the context of financial processes as they arise. This allows the platform to highlight critical issues, such as fraud, compliance gaps or human error, before they can cause significant financial or reputational damage. “Our platform analyzes ERP systems in real time, identifying anomalies and highlighting potential issues such as fraud or human error,” said Rozenblum.

3. Integrity Intelligence: Finance leaders using the platform gain access to a comprehensive control tower that provides a holistic view of the organization’s financial health. Datricks’ dashboards allow users to see the issues that matter most, allowing them to respond quickly and achieve maximum financial performance. “We aim to push these insights all the way to the end user so they can respond quickly and improve the way the organization works,” Rozenblum added.

The platform, which requires no configuration, begins identifying risks within a week of connecting to an organization’s financial systems.

“We’re offering a ‘seven-day challenge’ to prove we can deliver actionable insights from a company’s data in just one week,” said Rozenblum. “Thanks to AI, we can do in a week what would normally take an army of consultants to discover.”

A mix of models under the hood

Similar to a growing number of AI-powered startups, Datricks uses multiple large language models (LLMs) and multimodal AI models to power its tools.

“We have a few models that work in different strategies,” Rozenblum confirmed. “One of these is the process flow, called process mining. We have developed our own variant, called ‘risk mining’, which follows the process and detects deviations.”

LLMs are helping with a new agent that’s still in the works, but will eventually “explain the problem like a human advisor would, rather than giving you a table,” he added.

Additionally, Datricks relies on Amazon Bedrock, the e-commerce and cloud giant’s AI model marketplace for training and inference, to redeem various proprietary LLMs their customers prefer.

Large enterprises can save millions by preventing fraud, detecting double billing and other errors

Datricks’ approach has already helped its clients avoid financial disaster.

Rozenblum cited an example where the platform discovered that “$2 million in payments were made in a non-compliant manner because the same person both issued the invoice and approved the payment.”

The platform’s ability to detect double billing and other critical errors is another key area of ​​value. “We help prevent double billing and other costly errors that can seriously impact a company’s financial results,” Rozenblum emphasizes.

Datricks’ real-time monitoring and automated detection processes allow companies to not only identify issues quickly, but also take corrective action.

“Our insights are delivered through dashboards, where users can see the root causes of issues such as fraud, waste or compliance issues,” Rozenblum explains. “We aim to bring these insights all the way to the end user, so they can respond quickly and improve the way the organization works, not come in as an afterthought.”

With its AI stack, Datricks can analyze an entire organization’s ERP system in real time, spot anomalies and perform root cause analysis.

This reduces reliance on traditional manual audits, which often examine only a fraction of a company’s financial activities.

A growing customer base and high-profile donors

Datricks’ solutions have already been adopted by major companies such as Element Solutions, HELLA FORVIA, Teva, CyberArk and ICL Group.

The company also has partnerships with major consulting firms, including Deloitte, EY, KPMG and PwC. The platform has analyzed over a trillion dollars in transactions to date and prevented hundreds of millions of losses.

SAP, one of Datricks’ key partners, participated in the Series A round, a strong endorsement of the company’s value in enterprise software.

“SAP is one of our most important partners. They even participated in our latest funding round, which shows how much confidence they have in our solution,” said Rozenblum.

This latest round of funding follows the expansion of Datricks’ commercial partnership with SAP, including the integration of Datricks for Risk Mining as an SAP Endorsed App.

“Their comprehensive solution enables proactive risk mitigation and continuous financial compliance to accelerate business process transformation,” said Dr. Gero Decker, General Manager at SAP.

The promising future of Datricks’ risk mining

With the support of Team8, SAP and JVP, Datricks is poised to lead the way in reshaping the way large organizations manage financial risk.

Gadi Porat, General Partner at JVP, highlighted Datricks’ potential, noting that the company’s innovations have already delivered exceptional efficiencies for Fortune 500 clients.

As digital transformation accelerates and the volume of financial data grows, Datricks aims to provide enterprises with the tools to stay ahead of potential risks to ensure financial integrity and compliance in a rapidly changing business landscape.