London-based RegTech company ClauseMatch has landed $5m (£3.58m) in a Series A round led by Index Ventures.
ClauseMatch provides software-as-a-service platform for smart, collaborative document management.
Funding in this round also came from SpeedInvest, Talis Capital, alongside angel investment from Tom Glocer, former CEO of Thomson Reuters; and Cristobal Conde, former CEO of Sungard. The money will be used to continue to grow the company and develop its product.
The product works as an online document editor, where colleagues can all add comments, make approvals and changes within it, and they are all tracked as part of an audit trail. Intended for compliance, legal, finance, operations and risk teams, the company claims its product saves time and reduces human error.
Evgeny Likhoded, ClauseMatch’s CEO and co-founder, shared his company aims:”Our goal is to create a compliance platform that is fully automated, smooth and effortless, that enables people responsible for compliance to be more proactive and strategic, and that increases full transparency and the state of compliance across the board.
“Equally, we are aiming to bring regulators to the table so that both sides of financial services are connected,” he added.
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Non-compliance can be costly. ClauseMatch claims that, global banks currently spend 20% of their operating costs on compliance and employ thousands of people dedicated to managing the processes manually.
Index Ventures is a London and San Francisco-based international venture capital firm. Jan Hammer, partner at the VC firm, shared their view: “The regulatory system is broken. Regulators don’t have a full view of how regulation impacts the industry, over-regulating as a result, whilst companies struggle to keep up and stay compliant.
“We believe ClauseMatch can make the entire regulatory ecosystem function much better for both the regulated and the regulator, by providing new, simple to use tools replacing outdated document management and word processing software,” he added.
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