Artificial intelligence model risk management startup ValidMind Inc. said today it has closed on an $8.1 million seed funding round that will be used to advance its go-to-market plans.
Today’s round was led by Point72 Ventures and saw participation from Third Prime Ventures, New York Life Ventures, AI Fund, Notion Capital, FJ Labs, Angel Invest and Gaingels.
ValidMind has created an AI model risk management platform for financial services organizations to automate tasks such as AI model testing, documentation and model risk governance. By automating these tasks, the startup says it’s uniquely able to increase developer’s productivity, reduce the time to market for new AI models and improve outcomes for model risk management teams.
Existing model risk management processes are notoriously inefficient, the startup says. The bulk of AI model documentation tasks are done manually, meaning more than 100 hours of manual writing per model.
What’s more, model validation is a reactive process that occurs at the end of the development process, which means any potential issues usually aren’t discovered until several months into a project. In addition, organizational silos between…
