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ValidMind Secures $8.1 Million for Model Risk Management and AI Governance Solutions Development

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ValidMind has secured $8.1 million in a seed funding round. The investment will focus on developing model risk management and AI governance within the banking and financial services sectors. The company says the seed round was over-subscribed, demonstrating support from investors in its long-term vision to be the certifying authority for all AI solutions, starting with optimisation of financial institutions’ model risk management processes and enabling efficient and responsible AI governance.

The funding round was led by Point72 Ventures and backed by investors including Third Prime, AI Fund, FJ Labs, New York Life Ventures, Notion Capital, Angel Invest Ventures, and Gaingels. Tripp Shriner, partner at Point72, has joined the ValidMind board of directors.

The company offers an AI risk management solution that allows organisations to automate testing, documentation, and model risk governance for AI and statistical models. By automating model documentation, ValidMind is designed to help increase developer productivity, reduce time to market for models, and improve model risk management outcomes, enabling organisations to deploy AI-backed solutions with integrity, transparency and trust.

The solution is also geared to ensuring compliance with global AI and model risk regulations, such as the EU’s AI Act and the recently announced AI Bill of Rights from the US administration.

“Model risk management 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,” says Jonas Jacobi, CEO and co-founder of ValidMind. “This seed funding round strengthens our commitment to help customers increase the speed and efficiency of model risk management processes, reduce time-to-market for new AI solutions and ensure compliance with global AI and model risk regulations.”

The $8.1 million funding brings ValidMind’s total funds raised to $11.1 million.

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