Datricks gets $15M from SAP and others for AI-powered risk and compliance platform

Datricks, an AI-powered financial integrity and compliance software startup headquartered in Tel Aviv, Israel has raised $15 million in a Series A funding round led by venture capital firm Team8.

The investment also saw participation from SAP, a global enterprise software giant, as well as existing investor Jerusalem Venture Partners (JVP).

Co-founded by CEO Haim Halpern and chief technology officer (CTO) Roy Rozenblum in 2019 as an outgrowth of their prior consulting business, Datricks specializes in “risk mining,” an AI-powered approach that autonomously analyzes financial workflows across business systems like SAP, Oracle, and Salesforce.

“We were a consulting company for many years, managing large projects with around 500 consultants. At some point, we decided to transition to a software company to achieve scale,” said Rozenblum in a video call interview with VentureBeat earlier this week.

The Datricks Financial Integrity Platform platform is designed to uncover financial anomalies, fraud patterns, and compliance issues, providing companies with real-time insights and the ability to prevent potential financial and reputational damage.

The new capital will help Datricks scale its operations and further develop its platform, helping large enterprises stay safe and compliant in an increasingly complex global and national regulatory environment.

Addressing a critical gap in financial risk management

Organizations worldwide lose an estimated 5% of their revenue to fraud annually, amounting to $4.7 trillion in losses, according to the Association of Certified Fraud Examiners.

Traditional compliance and audit processes often fall short in identifying these risks, leaving companies vulnerable to schemes that can cost millions.

Datricks Financial Integrity Platform aims to close this gap by providing continuous, real-time monitoring of 100% of an organization’s financial data, ensuring greater accuracy and fewer false positives.

“For CFOs, trusting the numbers is critical. One major challenge is fraud, especially internal fraud, which can distort financial data,” Rozenblum said in an interview with VentureBeat. “There are three main issues: fraud, compliance problems, and human errors. These can lead to significant financial losses for enterprises.”

Datricks addresses these issues by automating the process of financial integrity management. It’s built around three core components:

1. Autonomous Process Discovery: Datricks continuously and autonomously analyzes an organization’s financial processes without requiring manual input. By doing so, it understands the business context and maps out how these processes work. “We track how processes actually happen, monitor them in real time, learn how they work, and then spot the problems — showing where the anomaly is and finding the root cause,” explained Rozenblum.

2. Integrity Exposure Detection: Datricks’ AI identifies problems and anomalies across all business transactions, analyzing them in the context of financial processes as they occur. This allows the platform to highlight critical issues, such as fraud, compliance gaps, or human errors, before they can cause significant financial or reputational damage. “Our platform analyzes ERP systems in real time, identifies anomalies, and highlights potential issues such as fraud or human error,” said Rozenblum.

3. Integrity Intelligence: Finance leaders using the platform gain access to a comprehensive control tower that provides a holistic view of the organization’s financial health. Datricks’ dashboards allow users to see the issues that matter most, empowering them to respond quickly and achieve peak financial performance. “We’re aiming to push these insights all the way to the end user, so they can respond quickly and improve how the organization works,” Rozenblum added.

The platform, which requires no configuration, begins identifying risks within a week of connecting to an organization’s financial systems.

“We offer a ‘seven-day challenge’ to prove that we can deliver actionable insights from a company’s data within just one week,” Rozenblum said. “We can do in a week what would typically take an army of consultants to uncover, thanks to AI.”

A mix of models under the hood

As with a growing number of AI-powered startups, Datricks leverages multiple large language models (LLMs) and multimodal AI models to power its tools.

“We have a few models that work in different strategies,” Rozenblum confirmed. “One is the process flow, called process mining. We developed our own variant called ‘risk mining,’ which tracks the process and detects anomalies.”

LLMs help with a new a agent that is still in the works, but will ultimately “explain the problem like a human consultant would do, instead of giving you a table,” he added.

In addition, Datricks relies on Amazon Bedrock, the e-commerce and cloud giant’s AI model marketplace for training and inferences, to swap in different proprietary LLMs preferred by their customers.

Saving large enterprises multi-millions by avoiding fraud, detetcing double billing and other errors

Datricks’ approach has already helped its customers prevent financial mishaps.

Rozenblum pointed out one example where the platform uncovered “$2 million of payments being done in a non-compliant way, because the same person was both putting the invoice and approving the payment.”

The platform’s ability to detect double billing and other critical mistakes is another key area of value. “We help prevent double billing and other costly mistakes that can severely impact a company’s financial results,” Rozenblum emphasized.

Datricks’ real-time monitoring and automated detection processes allow companies to not only identify issues quickly but also take corrective action.

“Our insights are delivered through dashboards, where users can see the root causes of issues like fraud, waste, or compliance problems,” Rozenblum explained. “We’re aiming to push these insights all the way to the end user, so they can respond quickly and improve how the organization works, not just come in after the fact.”

With its AI stack, Datricks can analyze an entire organization’s ERP system in real-time, detect anomalies, and provide root cause analysis.

This reduces reliance on traditional manual audits, which often only sample a fraction of a company’s financial activities.

A growing client base and high-profile backers

Datricks’ solutions have already been adopted by large enterprises such as Element Solutions, HELLA FORVIA, Teva, CyberArk, and ICL Group.

The company also boasts partnerships with major consulting firms, including Deloitte, EY, KPMG, and PwC. The platform has analyzed over a trillion dollars in transactions and prevented hundreds of millions in losses to date.

SAP, one of Datricks’ key partners, participated in the Series A round, a strong endorsement of the company’s value in the enterprise software space.

“SAP is one of our key partners. They even participated in our last funding round, which shows the level of confidence they have in our solution,” Rozenblum said.

This latest round of funding follows the expansion of Datricks’ commercial partnership with SAP, including the integration of Datricks for Risk Mining as an SAP Endorsed App.

“Their comprehensive solution enables proactive risk mitigation and continuous financial compliance to accelerate business process transformation,” said Dr. Gero Decker, General Manager at SAP.

The promising future of Datricks’ risk mining

With the backing of Team8, SAP, and JVP, Datricks is poised to lead the charge in reshaping how large organizations manage financial risk.

Gadi Porat, General Partner at JVP, emphasized Datricks’ potential, noting that the company’s innovations have already provided exceptional efficiency for Fortune 500 clients.

As digital transformation accelerates and the volume of financial data grows, Datricks aims to provide enterprises with the tools to stay ahead of potential risks, ensuring financial integrity and compliance in a fast-changing business landscape.