Xapien secures $10 million in Series A funding to accelerate AI-powered transformation of the research industry

AI due diligence provider Xapien secures $10 million in Series A funding round to enhance its AI-powered due diligence platform.

1. Xapien secures $10 million in Series A funding round led by YFM Equity Partners to enhance its AI-powered due diligence platform.

2. Xapien’s AI technology is revolutionizing due diligence by delivering fast, cost-effective research reports, creating a profound change in the $44 billion compliance market.

3. Since its last funding round in March 2023, Xapien has seen a 150% increase in ARR, doubled its headcount, and secured key partnerships, including with Dow Jones Risk & Compliance.

LONDON, July 17, 2024 (GLOBE NEWSWIRE) — AI due diligence provider Xapien today announced the closing of its $10 million Series A funding round led by YFM Equity Partners, bringing total funding to $17.8 million. Xapien will use the new capital to continue redefining how companies understand their third parties, enabling organizations of all sizes to conduct comprehensive due diligence in minutes rather than days. This will be achieved by accelerating the development of its next-generation Entity Resolution Engine, which includes advanced native language processing, integrations with leading data providers, new enterprise features, and a continuous monitoring solution for perpetual Know Your Customer (KYC). In addition, Xapien will use the funds to further expand into new sectors such as financial services and large enterprise partners, and to expand its presence in the U.S.

Companies today must understand their customers, suppliers, donors, applicants and investors and ask themselves not just if they can do business with them, but if they should. Conscious consumers who demand ethical behavior and transparency from companies are voting with their wallets. Global instability, from geopolitical tensions to rapidly changing sanctions, increases the need for comprehensive due diligence. Against the backdrop of an ever-expanding risk landscape, the external market research industry is hampered by slow, fragmented and manual methods and is therefore vulnerable to disruption.

Xapien’s AI-driven platform is uniquely positioned to address the complexity of the global corporate governance, risk and compliance market, valued at $43.65 billion today and expected to grow to $111.31 billion by 2032.¹ Xapien’s fast, fully automated background research reports enable clients to assess risks and opportunities across their third-party vendor network in minutes. This reduces their reliance on time-consuming and costly manual research – whether done internally or by risk consultants – and greatly increases the knowledge that companies can build about their third-party vendors, leading to better, faster deals. Such a profound change in the compliance market has not been seen since the founding of database companies like WorldCheck in 1999.

The story goes on

Since its last investment in March 2023, Xapien has experienced remarkable growth, with annual recurring revenue increasing by over 150% and headcount doubling to 45 employees. The company received support from industry giant Dow Jones Risk and Compliance, which launched an industry-leading compliance tool, Integrity Check. Since then, one of the world’s largest law firms has entered into a joint development agreement with the company to develop the world’s first large-scale language model AI tool for anti-money laundering compliance in the legal industry. The tool will reduce average onboarding times from weeks to hours and reduce risk exposure through better use of critical human-led compliance resources.

In the last 15 months, Xapien has also won business from Magic Circle, Silver Circle and AmLaw 100, as well as large firms in risk advisory and private wealth. In the philanthropic sector, Xapien has grown its client base by 300% in the last 18 months.

Chris Green, CEO of Xapien, said: “We founded Xapien to bring transparency to business relationships so organizations of all sizes truly know who they are working with. This investment will not only accelerate our cutting-edge natural language processing and entity resolution technologies, but also put us at the forefront of a fundamental shift in compliance. We are transforming due diligence from a time-consuming, manual process into an efficient, accurate and comprehensive solution. Xapien is setting new standards in compliance and helping organizations worldwide navigate complex regulatory environments easily and confidently, ultimately leading to better business practices and stronger ethical standards.”

James Savage, Partner at YFM, said: “Xapien’s innovative technology is gaining impressive commercial traction in an exciting market and has already demonstrated its value in existing sectors. With our support, Xapien is ready to expand into new areas, enhance its product, grow its team and expand its geographic reach. We believe in the strength and scalability of the Xapien team and look forward to accelerating its growth and success.”

About Xapien

Founded by seasoned technology experts with decades of experience in intelligence and financial crime, Xapien applies cutting-edge artificial intelligence and natural language processing to deliver on-demand research for organizations looking to truly understand their third parties.

Xapien’s SaaS platform is changing the way the world engages with its partners by enabling everyone to know who they are doing business with – a capability that was previously only available to organizations with significant resources.

For more information visit www.xapien.com or follow us on LinkedIn.

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A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b684ec1b-abfe-44e0-a621-14b099bdd510

¹ https://www.fortunebusinessinsights.com/industry-reports/enterprise-governance-risk-and-compliance-egrc-market-101415#:~:text=KEY%20MARKET%20INSIGHTS&text=The%20global%20enterprise%20governance%2C %20 risk,12.4%25%20during%20the%20forecast period.