Xapien has secured a $56 million investment round led by Spectrum Equity, with existing investor YFM Equity Partners also participating, as the AI-native due diligence company expands internationally and builds out its U.S. operations.
The financing follows rapid expansion at Xapien, which said its annual recurring revenue has grown more than 350% during the past 24 months.
Xapien plans to use the growth investment to expand its U.S. presence, where the company already generates 50% of its revenue. The initiative includes expanding its Boston office and relocating CEO Chris Green and other senior leaders to the U.S.
The company’s platform is designed to automate due diligence and third-party risk analysis for legal, compliance, procurement and other teams.
Xapien analyzes information from the open web, corporate records, sanctions lists and media across multiple languages, resolving identities among similarly named people and organizations before performing risk analysis.
The system produces fully sourced and auditable reports in minutes rather than days. Xapien said customers report that approximately 90% of onboarding cases can be fully automated, allowing analysts to concentrate on higher-risk and more complicated cases.
Xapien is also developing Xapien Live, currently in beta, which is designed to continuously monitor counterparty risk rather than relying on one-time or periodic due diligence reviews.
Founded in 2018 by Dan Secretan and Shaun O’Mahony, Xapien is led by CEO Chris Green, who joined in 2022. All three previously worked across BAE Systems’ financial crime and national security operations.
The company now serves 350 clients and partners across 15 countries, including multinational corporations, law firms, private banks, universities, nonprofits and professional services firms.
Representative customers include Greenberg Traurig, ABB, Dow Jones Risk & Compliance and KPMG.
KEY QUOTES:
“Third-party due diligence has remained stubbornly manual for twenty years,” said Chris Green, CEO of Xapien. “Hence, businesses have had to ration their scrutiny to a subset of relationships with one-off checks at the point of onboarding, leaving them massively exposed. This funding lets Xapien pursue its mission to give compliance, legal, and procurement teams full visibility on every counterparty, all the time, giving organizations the confidence to move at speed.”
Chris Green, CEO of Xapien
Adam Margolin, Managing Director, Spectrum Equity added “Xapien represents a rare opportunity for Spectrum to back a team with deep domain expertise that has been laser focused on harnessing innovative AI technology to transform and automate enhanced due diligence. Xapien is fast emerging as a new standard for counterparty risk management, and we are excited to support Chris, Dan and Shaun in this next stage of growth.”
Adam Margolin, Managing Director at Spectrum Equity
“For too long, compliance teams have had to choose between the depth of their research and the speed at which they need to act. Xapien shows that automation can deliver both, helping organizations conduct rigorous due diligence more efficiently and make faster, smarter risk-based decisions.”
Joel Lange, EVP & General Manager, Risk and Enterprise at Dow Jones
