Abstract Raises $4.8 Million for AI-Powered Regulatory Risk Management Platform

Abstract Raises $4.8 Million for AI-Powered Regulatory Risk Management Platform | PYMNTS.com

Abstract raised $4.8 million in seed funding to accelerate the development of its artificial intelligence-powered platform that helps businesses anticipate how proposed changes in government policy may affect them. The company will use the new capital to enhance the platform's ability to derive intelligence and context from disparate data elements like draft legislation, public comments and regulatory discussions, Abstract said in a Thursday (Jan. 9) press release. "Instead of spending inordinate amounts of time manually reviewing changes from legacy bill tracking tools, corporate teams are presented with Abstract's tailored insights into 'risks' and 'opportunities' for their businesses, allowing them to be proactive before proposed bills or regulatory changes are finalized," Abstract CEO and co-founder Pat Utz said in the release. Abstract's platform pulls real-time information from more than 145,000 government bodies, social media and news channels, according to the release. Using this data, it flags developments that are relevant to the user's business, provides insights and distills trends seen across jurisdictions, according to the release. Since its founding in 2019, Abstract has worked with more than 200 organizations, per the release. Its new seed funding, co-led by Bonfire Ventures and Communitas Capital, brought the company's total funding to more than $9 million. "Abstract's solution comes at a crucial time for enterprises as the incoming administration promises deregulation across numerous sectors, including financial services, energy, the environment and transportation," Tom Glocer, co-founder and general partner at Communitas Capital, said in the release. AI can transform compliance from a burdensome requirement into a more manageable, strategic advantage, empowering businesses to meet regulatory standards without compromising on efficiency or cost in other areas, PYMNTS reported in November.

Abstract Raises $4.8 Million to Accelerate its AI Platform for Managing Regulatory Risks and Opportunities

Enter your email to get Benzinga's ultimate morning update: The PreMarket Activity NewsletterAbstract's AI Regulatory Platform pulls data from 145,000 government bodies and leverages a proprietary database of over seven million regulatory records New solution is a force-multiplier, enabling law firms, lobbyists, corporate legal, government relations, finance, HR and product teams to proactively take action on shifting regulatory and policy landscapes NEW YORK, Jan. 09, 2025 (GLOBE NEWSWIRE) -- Abstract, the artificial intelligence company developing the first regulatory superintelligence platform, today announced it raised $4.8 million in seed funding co-led by Bonfire Ventures and Communitas Capital. This latest investment brings Abstract's total funding to more than $9 million. The new capital will drive deeper focus on how Abstract's platform combines disparate data elements - such as from draft legislation, public comments, and regulatory discussions -- to deliver peak intelligence and context. Functioning like a team of analysts, Abstract enables users to proactively flag risks and opportunities relevant to their business, unlock broad insights through news and social media channels, and distill relevant, cross-jurisdictional trends in policy. "In a world where regulatory complexity continues to grow, Abstract is building essential infrastructure for modern enterprises and we're thrilled to support them. What impressed us most wasn't just Abstract's technological innovation, but also the team's deep understanding of the regulatory landscape," said Mark Mullen, co-founder, Bonfire Ventures. "Their background has uniquely shaped Abstract's product strategy and go-to-market approach, positioning them to build something truly transformative in this space." Federal lobbying spending by U.S. businesses hit a record $4.2 billion in 2023, a 62% increase in spending since 2008 ($1.6 billion). According to Tracking the Cost of Complying with Government Regulation, the average U.S. firm spends "between 1.3% and 3.3% of its total wage bill on regulatory compliance." This rise in spending coincides with the rise in federal government regulations from 400,000 in 1970 to over one million today. As the first AI regulatory agent, Abstract takes aim at the cost and complexity of regulatory compliance by proactively addressing issues for legal, product, finance and human resources teams. Abstract is building the future of regulatory intelligence with its AI platform. Leveraging the latest AI technologies including Large Language Models (LLMs) and Retrieval-Augmented Generation (RAG), the platform synthesizes millions of legislative and regulatory data points, pulling real-time information from over 145,000 government bodies, social media and news trends. The platform uncovers and contextualizes nuanced connections and implications that are missed in manual review, providing context for how news, media, and regulatory shifts may impact a company. By integrating with existing workflows and leveraging a proprietary database of over seven million regulatory records, Abstract surfaces the most relevant risks and opportunities specific to each business' needs and risk profile, surpassing any corporate teams' ability to manually assess what external changes might pose a risk or opportunity to the enterprise. "Our AI platform is already transforming the way our customers and technology partners are identifying how any proposed change or existing government policy impacts their business," said Pat Utz, CEO and co-founder of Abstract. "Instead of spending inordinate amounts of time manually reviewing changes from legacy bill tracking tools, corporate teams are presented with Abstract's tailored insights into 'risks' and 'opportunities' for their businesses, allowing them to be proactive before proposed bills or regulatory changes are finalized. Abstract acts as a team of analysts, providing context on how each change impacts everything from a product roadmap, to a profit and loss statement." Since its founding, Abstract has worked with over 200 organizations, including Fortune 500 companies, AMLaw 200 firms, non-profits and government bodies. "Abstract's solution comes at a crucial time for enterprises as the incoming administration promises deregulation across numerous sectors including financial services, energy, the environment and transportation," said Tom Glocer, Co-Founder and General Partner, Communitas Capital. "Our intensive due diligence with Abstract's customers highlighted benefits, including significant time savings, improved risk management, and increased ability to capitalize on policy-driven opportunities. It is clear that this is the right solution at the right time." "The Abstract team is incredibly impressive. Pat has spent a significant amount of time studying the problem and interviewing stakeholders across the board. Not only does he possess exceptional commercial sense, landing notable large enterprise customers through a founder-led sales motion alone, but he -- as well as the team he's built around him -- are all technical rockstars, as vetted by their professors and advisers at Loyola Marymount University. We have thoroughly enjoyed getting to know Pat and the team during our diligence process, and we could not be more excited to partner with them," said Parker Odrich, vice president at Communitas Capital. About Abstract Abstract is an artificial intelligence company developing the first proactive regulatory superintelligence platform focused on delivering real-time insights on proposed and existing government policy and regulations to enterprises and their internal teams across legal, finance, product and human resources. Abstract surfaces the most relevant risks and opportunities contextualized to each business' unique needs and risk profile. Headquartered in New York, Abstract was founded in 2019 after a university senior thesis project, and since that time has worked with more than 200 organizations. For more information, visit Abstract.us, LinkedIn , email us at [email protected] or call +1-507-615-4305. About Bonfire Ventures Bonfire Ventures is an early-stage venture capital firm that leads seed rounds and invests exclusively in the B2B software sector. With over $850M under management, Bonfire backs extraordinary founders and aspires to serve as their most trusted advisors. Known for their hands-on approach, Bonfire is regularly named one of the best seed stage VC firms by founders. Notable investments include TaxJar (acquired by Stripe), The Trade Desk (IPO), Boulevard, ChowNow, and OpenPath (acquired by Motorola). For more information on Bonfire Ventures, visit www.bonfirevc.com. About Communitas Capital Communitas Capital is a New York based venture capital firm founded by financial industry veterans Doug Atkin, former CEO of Instinet, Tom Glocer, former CEO of Thomson Reuters, and Duncan Niederauer, former CEO of The New York Stock Exchange. Communitas invests in early-stage businesses in financial technology and other verticals - such as real estate tech, insurance, alternative data, blockchain and digital marketplaces. To learn more visit http://www.communitascapital.com. Media Contact Theresa Smith Kickstart Consulting for Abstract 818-704-8481 [email protected] Market News and Data brought to you by Benzinga APIs