Comply Advantage raises $50m Series C

ComplyAdvantage, a global technology company transforming financial crime detection, has announced the close of a US$50 million Series C funding round, bringing the total investment to date to $88 million. The company will apply the
investment toward rapid product and market expansion across the United States, Europe, and the Asia-Pacific region.

The Series C round was led by Ontario Teachers’ Pension Plan Board, one of the world’s largest pension plans with C$207.4 billion in net assets, through its Teachers’ Innovation Platform, which focuses on late-stage venture and growth equity investments in companies that use disruptive technology.

Existing ComplyAdvantage investors Index Ventures and Balderton Capital also participated in the round.

“Ontario Teachers’ deep experience and credibility with global financial institutions made them a natural choice to lead the round,” said Charles Delingpole, Founder and CEO of ComplyAdvantage. “Ontario Teachers’ takes a long view of investing that is genuinely aligned with our own vision at ComplyAdvantage to transform how companies mitigate risk.

“This funding allows us to accelerate the development of our industry-leading data and suite of products to serve institutions with diverse clients and complex risk exposure.”

ComplyAdvantage uses machine learning and natural language processing to help regulated organisations manage their risk obligations and prevent financial crime. The company’s proprietary database is derived from millions of data points that provide dynamic, real-time insights across sanctions, watchlists, politically exposed persons, and negative news.

“ComplyAdvantage offers mission-critical technology solutions for combating financial crime and keeping pace with an ever-evolving regulatory landscape,” said Olivia Steedman, SeniorManaging Director, TIP, at Ontario Teachers’.

“The company is well positioned to continue its rapid growth as its powerful technology platform transforms the compliance and risk management process for its clients.”

External risk indicators are becoming harder to spot as the amount of information available grows exponentially and the speed of change gathers pace. COVID-19 has created additional challenges for governments and financial institutions.

They are having to decipher changes in transaction patterns and manage new levels of risk associated with large amounts of pandemic- relief funds during a mass and unplanned migration to remote working.

Jan Hammer, Partner at Index Ventures said, “Detecting financial crime in billions of transactions that take place around the globe has become nearly impossible without the application of data science and machine learning.

“It is this approach that has made ComplyAdvantage into a leader in the category, and the go-to partner for organisations who seek to automate what are still very often manual or inadequate processes.”