Valid8 Financial secures $8.5M to shape the verified financial intelligence category
Valid8 Financial, a provider of Verified Financial Intelligence solutions, announced it has secured $8.5 million in Series A funding, empowering the company to further invest in its engineering and go-to-market teams, primarily at its Boulder, Colorado headquarters.
The funding round was led by Silverton Partners with participation from Touchdown Ventures, First Trust Capital Partners, CPA.com, and Capital Midwest.
Valid8 provides AI-powered forensic accounting solutions to accounting and law firms, enabling them to untangle a web of complex financial transactions in hours instead of weeks.
The investment comes at a critical time, as prosecutions and reported losses from fraud are on the rise, according to the Department of Justice and the Federal Trade Commission.
"Prosecutions and civil litigation stemming from fraud and other financial malfeasance are among the most complex cases in our justice system," said Chris McCall, CEO and co-founder of Valid8 Financial. "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 provides verified evidence for a wide variety of complex financial matters and white-collar crime investigations, including Medicaid fraud, partnership disputes, asset division, high-net-worth divorces, M&A diligence, audit and Chapter 11 bankruptcies.
The company uses the latest in 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.
According to the company, Valid8's AI does not make any judgment about fraudulent activity. Instead, it provides visualizations that demonstrate the flow of funds and clarifies which transactions require further evaluation by a professional investigator.
Historically, accounting has depended on sample risk assessments and rote reviews of transactions to uncover potential fraud. Valid8's research shows that investigators spend up to 90% of their time on such tasks before analysis can even begin.
"Valid8's technology is designed to eliminate sample risk from accounting," said McCall. "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."
Roger Chen, partner with Silverton Partners, will join the board to support Valid8's continued growth and development.
For more information about this news, visit www.valid8financial.com.