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Datrix, 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.
This investment was also joined by global enterprise software giant SAP and existing investor Jerusalem Venture Partners (JVP).
Co-founded in 2019 by CEO Haim Halpern and CTO Roy Rozenblum as a spin-off from their previous consulting business, Datricks specializes in “risk mining,” an AI-based approach that autonomously analyzes financial workflows in business systems like SAP, Oracle, and Salesforce.
“We were a consulting firm for many years, managing large projects with about 500 consultants. At some point, we decided to transition to a software company to achieve scale,” Rozenblum told VentureBeat in a video conference interview earlier this week.
The Datricks Financial Integrity Platform is designed to uncover financial anomalies, fraud patterns, and compliance issues, providing businesses 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, while also helping large enterprises stay safe and compliant in an increasingly complex global and national regulatory environment.
Closing the Critical Gap in Financial Risk Management
According to the Certified Fraud Investigators Association, businesses worldwide lose 5% of their revenue to fraud each year, costing $4.7 trillion.
Traditional compliance and auditing processes are often inadequate in identifying these risks, leaving companies vulnerable to fraud that can cost them millions of dollars.
The Datricks Financial Integrity Platform aims to bridge this gap by continuously monitoring an organization’s financial data in 100% real-time, increasing accuracy and reducing false positives.
“It’s important for CFOs to trust their numbers. One of the biggest challenges is fraud, especially internal fraud that can distort financial data,” Rozenblum told VentureBeat. “There are three main issues: fraud, compliance issues, and human error. These can cause significant financial losses to companies.”
Datricks solves these problems by automating the financial integrity management process. It is built around three core components:
1. Discover autonomous processes: Datricks continuously and autonomously analyzes an organization’s financial processes without manual input. This allows it to understand the business context and map how those processes work. “We track how the processes actually happen, monitor them in real time, learn how they work, and then spot issues, show where they are anomalies, and find the root cause,” Rozenblum explained.
2. Integrity Exposure Detection: Datricks’ AI analyzes every business transaction to identify issues and anomalies in the context of the financial processes in which they occur. This allows the platform to highlight critical issues such as fraud, compliance gaps, or human errors before they cause serious financial or reputational damage. “Our platform analyzes ERP systems in real time, identifies anomalies, and highlights potential issues such as fraud or human errors,” Rozenblum said.
3. Integrity Intelligence: Finance leaders using the platform have access to a comprehensive control tower that provides a holistic view of the financial health of their organization. Datricks’ dashboards allow users to identify the most critical issues, respond quickly, and achieve top financial performance. “We aim to deliver these insights to end users so they can respond quickly and improve the way their organizations work,” Rozenblum added.
This platform requires no configuration and starts 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 in just one week,” Rosenblum said. “With AI, we can do in a week what an army of consultants would normally find.”
Various models under the hood
Like many AI-based startups, Datricks powers its tools by leveraging multiple large-scale language models (LLMs) and multimodal AI models.
“We have a couple of models that work across a variety of strategies,” Rosenblum confirms. “One is process mining, which is process flow. We developed our own variation called ‘risk mining,’ which tracks the process and detects anomalies.”
The LLM will help new agents who are still in the process of becoming established, ultimately allowing them to “explain problems like a human consultant rather than having to give them a table”, he added.
Datricks also leverages Amazon Bedrock, the e-commerce and cloud giant’s AI model marketplace, to train and infer models to replace a variety of proprietary LLMs preferred by customers.
Saves large corporations millions of dollars by preventing fraud, detecting double billing and other errors
Dartrix’s approach has already helped clients avoid financial misfortune.
Rozenblum pointed to one instance where the platform found that $2 million in payments were made in a noncompliant manner because “the same person was issuing the invoice and authorizing the payment.”
The platform’s ability to detect double billing and other significant mistakes is another key value area. “We help prevent double billing and other costly mistakes that can have a significant impact on a company’s financial results,” Rozenblum emphasized.
Datricks’ real-time monitoring and automated detection processes enable companies to quickly identify issues and take corrective action.
“Our insights are delivered through dashboards that allow users to get to the root cause of issues such as fraud, waste or compliance issues,” Rosenblum explained. “Our goal is to deliver these insights to end users so they can respond quickly and improve the way their organization works, rather than coming in after the fact.”
Datricks leverages the AI stack to analyze ERP systems across the organization in real time, detect anomalies, and provide root cause analysis.
This reduces reliance on traditional manual audits, which often sample only a portion of a company’s financial activities.
Growing customer base and high-profile sponsors
Datricks’ solutions have already been adopted by large enterprises including Element Solutions, HELLA FORVIA, Teva, CyberArk, and ICL Group.
The company also partners with major consulting firms including Deloitte, EY, KPMG, and PwC. The platform has analyzed over $1 trillion in transactions and has prevented hundreds of millions of dollars in losses to date.
SAP, one of Datricks’ key partners, participated in the Series A round, which is a strong testament to 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 funding follows the expansion of the commercial partnership between Datricks and SAP, which includes the integration of Datricks for Risk Mining into SAP-certified apps.
“Their comprehensive solution accelerates business process transformation by enabling proactive risk mitigation and ongoing financial compliance,” said Dr. Gero Decker, General Manager, SAP.
Datricks’ Bright Future for Risk Mining
Backed by Team8, SAP, and JVP, Datricks is leading the way in transforming how large organizations manage financial risk.
JVP General Partner Gadi Porat highlighted Datricks’ potential, noting that the company’s innovations have already delivered significant efficiencies to Fortune 500 customers.
As digital transformation accelerates and the volume of financial data grows, Datricks aims to provide businesses with tools to stay ahead of potential risks and ensure financial integrity and compliance in a rapidly changing business environment.
