Quick Overview

  • Israeli tech startup Datricks is gearing up to strengthen its risk management platform. According to the company's CTO, it has secured $15 million in its latest Series A funding round, with enterprise software giant SAP participating in the investment.
  • The platform leverages artificial intelligence technology to help businesses quickly identify operational risks such as fraud and regulatory compliance failures that could lead to financial losses and reputational damage.
  • "These issues are a nightmare for CFOs," said Roy Rozenblum, co-founder and CTO of the company, in an interview.

In-Depth Analysis

This investment comes at a time when business-to-business (B2B) payment fraud is surging, severely impacting corporate revenues, a trend corroborated by multiple recent reports.

According to analysis by the Association of Certified Fraud Examiners, a typical organization loses 5% of its revenue to fraud each year, with global annual losses exceeding $3.1 billion.

Another study by risk management firm Creditsafe found that slightly more than half of businesses lose over 30% of their total revenue annually due to fraudulent activities.

Founded in 2019, Datricks' platform claims to not only detect potential fraudulent activities but also identify other financial risks, such as human errors and violations of regulations like the Sarbanes-Oxley Act.

According to Rozenblum, the startup's software can connect to business management platforms provided by SAP, Oracle, and Salesforce, analyzing enterprises' daily processes across these systems and flagging any anomalies that arise.

In July this year, SAP announced the platform as a "SAP Endorsed App" as part of its expanded partnership with Datricks.

Rozenblum said that under the agreement, SAP agreed to promote the tool and is entitled to a portion of the revenue it generates. "We see a very large opportunity," he said.

The startup's new funding will be used to strengthen its platform, expanding applications of AI and large language models to "go beyond anomaly detection and advanced analytics to achieve fully automated audits," the tech executive said.

He also noted that Datricks will use the funds to hire "senior sales engineers with deep financial and technical knowledge."

SAP, along with venture capital firms Team8 and JVP, participated in the $15 million funding round, with Team8 leading the investment.

As part of the investment, Gero Decker, General Manager of SAP Signavio, will join Datricks' board of directors, according to a LinkedIn post by SAP corporate development executive Gadi Krumholz last week.

A spokesperson for Datricks said the company currently has 25 employees.

SAP did not immediately respond to a request for comment at the time of writing.