Hummingbird RegTech, a provider of anti-money laundering (AML) compliance technology, raised $8.2 million in its Series A funding round.
Flourish Ventures led the round, with new support from notable Stripe alumni Lachy Groom and Jon Zieger, and continued support from seed investors including Homebrew, Designer Fund, and TTV Capital. It brings the total funding to date to $11.8 million.
Hummingbird offers two products – a case management, investigation and reporting platform; and an API for validating and filing regulatory reports. Since its launch in 2017, it has helped major financial institutions with trillions in assets under management, as well as orchestrating the compliance programs of Brex, Upgrade and Etsy.
“We invested in Hummingbird since its inception because it is a business at the intersection of two important trends accelerated by the pandemic – finance embedded in all our digital experiences and the digitisation of regulation,” said Kabir Kumar, Director at Flourish Ventures. “The Hummingbird team cracked the code for automation in AML where others have struggled.”
“Enhanced data sharing offers enormous potential in how we detect financial crime. The new funding will allow us to move forward with technologies that could improve the quality and speed of communication among institutions and leverage structured datasets, with ethical care, for machine learning,” said Hummingbird co-CEO Joe Robinson. “We’re grateful for the opportunity to make regulatory compliance easier and money laundering more difficult.”
Hummingbird will also use the investment to support its expansion into new practice areas, including transaction disputes and consumer protections in lending; continue its operational growth; and enter the European market, starting with Ireland and the UK.
“Partnerships between banks and fintech start-ups have brought important services to market, but the regulatory complexities of these relationships pose large obstacles to their success,” said Hummingbird co-founder and former regulator Matt Van Buskirk.