Valid8 Financial – a leader in Verified Financial Intelligence – recently announced $8.5 million in Series A funding led by Silverton Partners with participation from Touchdown Ventures, First Trust Capital Partners, CPA.com, and Capital Midwest.
Valid8 offers AI-powered forensic accounting solutions to accounting and law firms – enabling them to untangle a web of complex financial transactions in hours rather than weeks. The funding round comes at a crucial time as prosecutions and reported losses from fraud are on the rise according to the Department of Justice and the Federal Trade Commission.
Valid8’s technology offers verified evidence for various complex financial matters and white-collar crime investigations, including Medicaid fraud, partnership disputes, asset division, high-net-worth divorces, M&A diligence, audits, and Chapter 11 bankruptcies.
The company utilizes the latest AI and automation technology to rapidly parse, reconcile, and categorize financial data from numerous sources, including bank transactions, Bitcoin deposits and withdrawals, and even hand-written checks. And Valid8’s AI does not make any judgment about fraudulent activity. Instead, it provides visualizations demonstrating the flow of funds and clarifies – which transactions require further evaluation by a professional investigator.
Historically, accounting depended on sample risk assessments and rote reviews of transactions to uncover potential fraud. And Valid8’s research shows that investigators spend up to 90% of their time on such tasks before analysis can even begin.
The new funding round enables Valid8 to further invest in its engineering and go-to-market teams, primarily at its Boulder, Colorado headquarters.
KEY QUOTES:
“Prosecutions and civil litigation stemming from fraud and other financial malfeasance are among the most complex cases in our justice system. Forensic accountants and attorneys require certainty in their investigations, which is why it may take months or even years to uncover the truth behind thousands or millions of financial transactions. Valid8’s unique approach to delivering Verified Financial Intelligence leverages AI to expedite the process while meeting the highest data quality standards for courtroom-ready evidence that expert witnesses can rely on.”
“Valid8’s technology is designed to eliminate sample risk from accounting. It’s eye-opening to have the complete picture and not be forced to base one’s opinion on a finite portion of a financial history.”
- Chris McCall, CEO and co-founder of Valid8 Financial
“Using Valid8’s software has fundamentally changed how our team works. Before, it took us significant time to evaluate even a small sample size. With this software, we gain a comprehensive understanding of the entire financial picture in less time. Our team is freed from the tedious review of each and every statement and transaction – time-consuming work that nearly every accountant wishes to avoid.”
- Jason Wright, Managing Director at Stout, a global investment bank and advisory firm
“Accounting is ripe for innovation. As digital banking, cryptocurrency exchanges and other financial innovations become more commonplace, accounting needs its own breakthroughs to stay ahead. Valid8’s technology and core commitment to eliminating sample risk represent the future of accounting. Beyond forensic accounting, this technology already has compelling use cases for audit, transaction advisory, M&A due diligence and beyond.”
Roger Chen, partner with Silverton Partners – who will join the board to support Valid8’s continued growth and development
