Sony Innovation Fund Invests in Clausematch Compliance Pioneer

Sony’s Innovation Fund, and other investors, have joined a $10.8m funding round for compliance and RegTech company Clausematch.

The UK-based business, which traces its roots back to 2012 and has about 70 staff, also gained investment from Lytical Ventures, which led the round, and Flashpoint. The new funds bring the total investment to date to over $20m, the company said.

The new financing will be used to increase the company’s commercial activities in the US and invest in its product, technology and data science teams. Clausematch counts several Tier 1 banks in North America and Europe, including Barclays, as clients.

As to what the company offers, in short it’s a SaaS platform for the management of compliance documents and processes. This includes a recently launched Policy Portal designed to be a ‘single real-time up-to-date repository of all policies and procedures across an organisation’.

Below is a short video on what it offers:

Clausematch video via YouTube.

The funding will help the company to keep expanding in the US – a natural place for growth given the size of the financial services and regulated industry sectors there. They also noted that they more than doubled their customer base in 2021 – and clearly want to keep up that rate of growth following the new funding.

Evgeny Likhoded, Founder and CEO, Clausematch, and who used to work at Morgan Stanley, said: ‘We got pulled to the US market and saw a significant demand for our solution in the financial services sector. With this funding round we are increasing our sales and marketing efforts on the US and European markets.

‘And we are also continuing to invest in our technical and product capabilities to automate compliance workflows and apply our data science models to the compliance content as one of the biggest challenges that heavily regulated firms are facing is keeping up with the volume of regulatory change.’

Antonio Avitabile, Managing Director-EU, Sony Ventures Corporation, concluded: ‘The global RegTech market is expected to reach more than $55 billion by 2025 as a growing number of compliance departments across many industries turn to technology and automation to cope with new and ever-changing regulations.

‘With its unique solution and a leadership team with deep expertise in compliance and financial services, Clausematch is well positioned to lead this growing market globally.’

So, just goes to show that some parts of the SaaS market are seeing plenty of interest still. Perhaps compliance is just one of those areas that will always keep on growing, after all, there is no end to new regulations, and things like ESG are only adding to the burden on corporations and financial institutions.     

(Main pic: the Clausematch team.)