Regnosys, a RegTech startup set up by two former Goldman Sachs employees, has received $900,000 in funding.
Co-founded in 2016 by Leo Labeis and Pierre Lamy, Regnosys seeks to help firms leverage technology to help them better manage their regulatory compliance.
The firm drew support from private investors and says it will use the funding to continue product development.
Lamy commented on the news and highlighted the need for disruption across the regulatory sector, noting how technology could help financial services firms become more transparent.
“Technology to discharge regulatory obligations at financial firms has become too complex and opaque to be auditable,” Labeis said, adding: “The compliance code base rapidly gets out of sync with statically documented specifications, particularly when implemented across a number of business applications and subject to post-compliance adjustments, which can leave firms exposed to consequential non-compliance tail risk.”
Patrick de Nonneville, one of the investors, will now act as a senior advisor to the company.
“I am making this investment because I believe in the company’s financial prospects, based on the profile of its founders, the solution they’re building and the size of the problem they address,” Nonneville told Tech City News.
The investor went on to note that Regnosys’ proposition made a “huge amount of sense” for financial institutions, as they struggle to keep up with the unprecedented pace of regulatory changes.
Nonneville said his investment in the round had been small but that the startup’s fundraise had generated “a large amount of interest”.