Datricks Secures $15M for AI-Powered Risk Management Platform

Datricks raises $15m for AI-powered risk management platform

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. Tech giant SAP joined the round, building on a recent expansion of its commercial partnership with Israel-based Datricks. According to a report by the Association of Certified Fraud Examiners, organisations globally lose an estimated five per cent of their revenue to fraud annually -- $4.7 trillion in losses. Datricks tackles the problem through "risk mining", using AI to automatically analyse and map entire business processes across business management solutions such as SAP, Oracle, and Salesforce. The platform extracts and correlates data in order to reverse-engineer a comprehensive view of an firm's financial workflows, helping to detect anomalies, fraud patterns, and compliance issues that circumvent established safeguards. Haim Halpern, CEO, Datricks, says: "The unknown financial risks are what keep CFOs of large enterprises up at night. By understanding the full context of financial processes, Datricks is able to analyze 100% of an organisation's data with no sampling limitations, ensuring complete coverage with minimal false positives."

Financial risk management startup Datricks raises $15M to help enterprises identify fraud - SiliconANGLE

Financial risk management startup Datricks raises $15M to help enterprises identify fraud A startup called Data.R.X LTD, which likes to be known as Datricks, has closed on a $15 million Series A funding round after developing a platform that uses artificial intelligence to try and uncover financial fraud at enterprises and other organizations. Today's round was led by Team8 and saw participation from SAP SE's venture capital arm, along with existing investors Jerusalem Venture Partners. It comes shortly after the launch of Datricks for Risk Mining as an SAP Endorsed App. Datricks has created what it likes to call a "financial integrity" tool that uses AI algorithms to analyze and map organization's business processes and financial transactions across business management platforms such as SAP, Oracle Database and Salesforce. It extracts and correlates information from these platforms to reverse-engineer a comprehensive view of customer's entire financial workflows, looking for patterns within the data that might indicate financial fraud. The startup claims its risk mining tools can identify fraud patterns, anomalies and compliance issues with extremely high accuracy. It will then highlight the risks it finds for human investigators, and it can also conduct a detailed root cause analysis of any incidents to identify why the anomaly occurred. One of the biggest advantages of its platform is that it requires "zero configuration." All customers need to do is make a couple of clicks to integrate it with their business process management platform of choice. It will be up and running within seconds, the startup said, and after about a week of analyzing the company's financial data, it will start surfacing issues that require deeper investigation. Datricks, which was co-founded by Chief Executive Haim Halpern and Chief Technology Officer Roy Rozenblum, believes fraud is a growing concern for enterprises. It cites a report by the Association of Certified Fraud Examiners published earlier this year, which found that the average organization loses around 5% of its revenue to fraud annually. That amounts to almost $4.7 trillion in losses globally each year. The startup explains that identifying fraud has become a huge challenge for enterprises due to the scale of their business. Thanks to digital transformation, globalization and strict regulatory requirements, companies have to deal with an explosion of financial data that's tied to increasingly intricate and convoluted business processes. So it's not surprising that most organizations have trouble keeping track of their finances. As Datricks points out, some of the biggest organizations on the planet, including Meta Platforms Inc. and Nike Inc., have become victims of multimillion-dollar fraud. Rozenblum told SiliconANGLE that Datricks would have had no trouble in spotting the kind of fraud perpetrated against Meta and Nike, because it would have established patterns that it would instantly be able to detect. He explained that there are a number of typical steps in any procurement process, such as creating and approving a new vendor, generating a purchase order, approving the receipt of goods or services, and receiving an invoice that matches the vendor, purchase order and receipt. "Ideally, these steps are handled by different people, but that's not always the case," Rozenblum said. In the case of Meta and Nike, the manager concerned was able to both approve a new vendor, created by her employee, and approve the receipt of a fake service. When the same person is involved in multiple steps like this, it creates a vulnerability because any fraudulent invoice is more likely to be approved without scrutiny." Rozenblum explained that Datricks would be able to flag the manager's actions as suspicious straight away, because it learns the entire procurement process at each organization, so it can monitor the flow of any new orders and purchases. "Datricks is designed to detect anomalies, and when it identifies irregular flows, it flags them for the process owner, highlighting potential risks," he said. "The platform uses AI to assess the severity of the risk by considering numerous data points and comparing them to the baseline of normal processes. This helps determine whether the situation is likely a real fraudulent event." According to Halpern, this kind of fraud is one of the biggest challenges faced by financial executives today, hence the need for a comprehensive risk analysis platform. "By understanding the full context of financial processes, Datricks is able to analyze 100% of an organization's data with no sampling limitations, ensuring complete coverage with minimal false positives," he insisted. Datricks might be at the beginning of its journey as a startup, but it has already managed to build up an impressive roster of clients, including multiple Fortune 500 organizations, such as CyberArk Software Ltd., Element Solutions Inc. and ICL Group Ltd., while its partners including consulting firms like Deloitte Touche Ltd., KPMG International Ltd. and PricewaterhouseCoopers International Ltd. Datricks doesn't provide any data to back up its claims, but it insisted that it has already prevented "hundreds of millions" of dollars in losses, having processed over a trillion dollars' worth of transactions for its customers. SAP General Manager Gero Decker said his company is making a strategic investment in Datricks because its risk mining tools perfectly complement its Business Transformation Management platform. "Its comprehensive solution enables proactive risk mitigation and continuous financial compliance to accelerate business process transformation," he said.

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

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More Datricks, an 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 also saw participation from SAP, a global enterprise software giant, as well as existing investor Jerusalem Venture Partners (JVP). Co-founded by CEO Haim Halpern and chief technology officer (CTO) Roy Rozenblum in 2019 as an outgrowth of their prior consulting business, Datricks specializes in "risk mining," an AI-powered approach that autonomously analyzes financial workflows across business systems like SAP, Oracle, and Salesforce. "We were a consulting company for many years, managing large projects with around 500 consultants. At some point, we decided to transition to a software company to achieve scale," said Rozenblum in a video call interview 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 stay safe and compliant in an increasingly complex global and national regulatory environment. Addressing a critical gap in financial risk management Organizations worldwide lose an estimated 5% of their revenue to fraud annually, amounting to $4.7 trillion in losses, according to the Association of Certified Fraud Examiners. Traditional compliance and audit processes often fall short in identifying these risks, leaving companies vulnerable to schemes 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, trusting the numbers is critical. One major challenge is fraud, especially internal fraud, which can distort financial data," Rozenblum said in an interview with VentureBeat. "There are three main issues: fraud, compliance problems, and human errors. These can lead to significant financial losses for enterprises." Datricks addresses these issues by automating the process of financial integrity management. It's built around three core components: 1. Autonomous Process Discovery: Datricks continuously and autonomously analyzes an organization's financial processes without requiring manual input. By doing so, it understands the business context and maps out how these processes work. "We track how processes actually happen, monitor them in real time, learn how they work, and then spot the problems -- showing where the anomaly is and finding the root cause," explained Rozenblum. 2. Integrity Exposure Detection: Datricks' AI identifies problems and anomalies across all business transactions, analyzing them in the context of financial processes as they occur. This allows the platform to highlight critical issues, such as fraud, compliance gaps, or human errors, before they can cause significant financial or reputational damage. "Our platform analyzes ERP systems in real time, identifies anomalies, and highlights 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, empowering them to respond quickly and achieve peak financial performance. "We're aiming to push these insights all the way to the end user, so they can respond quickly and improve how 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 offer a 'seven-day challenge' to prove that we can deliver actionable insights from a company's data within just one week," Rozenblum said. "We can do in a week what would typically take an army of consultants to uncover, thanks to AI." A mix of models under the hood As with a growing number of AI-powered startups, Datricks leverages 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 is the process flow, called process mining. We developed our own variant called 'risk mining,' which tracks the process and detects anomalies." LLMs help with a new a agent that is still in the works, but will ultimately "explain the problem like a human consultant would do, instead of giving you a table," he added. In addition, Datricks relies on Amazon Bedrock, the e-commerce and cloud giant's AI model marketplace for training and inferences, to swap in different proprietary LLMs preferred by their customers. Saving large enterprises multi-millions by avoiding fraud, detetcing double billing and other errors Datricks' approach has already helped its customers prevent financial mishaps. Rozenblum pointed out one example where the platform uncovered "$2 million of payments being done in a non-compliant way, because the same person was both putting the invoice and approving the payment." The platform's ability to detect double billing and other critical mistakes is another key area of value. "We help prevent double billing and other costly mistakes that can severely impact a company's financial results," Rozenblum emphasized. 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 like fraud, waste, or compliance problems," Rozenblum explained. "We're aiming to push these insights all the way to the end user, so they can respond quickly and improve how the organization works, not just come in after the fact." With its AI stack, Datricks can analyze an entire organization's ERP system in real-time, detect anomalies, and provide root cause analysis. This reduces reliance on traditional manual audits, which often only sample a fraction of a company's financial activities. A growing client base and high-profile backers Datricks' solutions have already been adopted by large enterprises such as Element Solutions, HELLA FORVIA, Teva, CyberArk, and ICL Group. The company also boasts partnerships with major consulting firms, including Deloitte, EY, KPMG, and PwC. The platform has analyzed over a trillion dollars in transactions and prevented hundreds of millions in losses to date. SAP, one of Datricks' key partners, participated in the Series A round, a strong endorsement of the company's value in the enterprise software space. "SAP is one of our key partners. They even participated in our last funding round, which shows the level of confidence they have in our solution," Rozenblum said. 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 backing of Team8, SAP, and JVP, Datricks is poised to lead the charge in reshaping how large organizations manage financial risk. Gadi Porat, General Partner at JVP, emphasized Datricks' potential, noting that the company's innovations have already provided exceptional efficiency 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, ensuring financial integrity and compliance in a fast-changing business landscape.