UK-based venture capital firm Molten Ventures has led a $25m (£18.4m) Series B funding round in MOSTLY AI, an Austrian synthetic data generation platform.
Other backers include existing investors 42CAP, Earlybird and a new investor Citi Ventures. The AI startup will use the fresh funding to further develop its offering, accelerate its growth in Europe and US, and add new team members.
Founded in 2017 by data scientists Michael Platzer, Klaudius Kalcher and Roland Boubela, MOSTLY AI uses AI to create artificial data sets. Effective AI applications require large amounts of quality data for training. However, many companies have landed themselves in hot water for either misusing user data or not being careful enough with it.
Synthetic data is expected to help with this as it complies with GDPR and is said to be generated swiftly, in abundance and “drastically improve machine learning model performance.”
MOSTLY AI claims the data it generates is very close to real customer data and resembles behaviours and patterns of customers with up to 99% accuracy.
A Gartner report suggests that around 60% of the data being used by 2024 will be synthetic data.
Tobias Hann, CEO at MOSTLY AI, said that 2022 will £be the year of synthetic data”. He added: “It eliminates concerns about data privacy, can be freely shaped and formed in order to accelerate AI initiatives, and enables enterprises to augment and de-bias their data sets. We’re extremely excited about the future of synthetic data, and to partner with Molten Ventures, which shares our vision for fundamentally changing how companies work with data.”
Molten Ventures, previously known as Draper Esprit, is a London-listed tech-focused VC active in Europe. Other companies in its portfolio include Thought Machine and PrimaryBid, both of which are UK companies.