SAN FRANCISCO – In a significant move towards addressing the ever-increasing use of artificial intelligence in the enterprise, Relyance AI, the leading AI-powered data governance platform, has announced a successful Series B funding round of $32.1 million. This funding round, led by Thomvest Ventures, aims to scale operations and cater to the burgeoning demand for AI-related solutions in today’s business landscape. Additional participants in this funding round include M12, Microsoft Ventures Fund, Cheyenne Ventures, alongside existing investors Menlo Ventures and Unusual Ventures.
With the rising demand for AI technology in the corporate sector, global regulators are now mandating data protection measures that many businesses find challenging to implement. Legal, security, and engineering teams are faced with a myriad of concerns regarding the utilization of customer data for training AI models. According to a KPMG survey, over two-thirds of enterprises are concerned about data privacy and security when partnering with third parties. The potential consequences of failing to address these concerns are significant, as more than a quarter of Fortune 500 companies have identified AI regulation as a risk in their annual reports to the SEC. Additionally, companies struggle to comply with existing data privacy regulations, such as the GDPR, which resulted in a record €2.1 billion in fines in 2023.
Relyance AI emerges as a crucial solution to these challenges, providing a fully integrated governance platform that combines privacy and security concerns into a single, unified approach. The platform enables businesses to navigate the complex regulatory landscape, empowering executives to realize the full potential of AI innovation while ensuring compliance with data protection regulations.
Abhi Sharma, CEO and co-founder of Relyance AI, emphasized the platform’s role in setting a new standard where data protection and innovation are not mutually exclusive. By simplifying compliance with regulations like GDPR, HIPAA, the EU’s AI Act, and various U.S. privacy laws, Relyance AI aims to facilitate the adoption of AI technologies in the enterprise with confidence and transparency.
The platform offers complete visibility into data processing activities across an organization, ensuring alignment with contractual obligations, privacy laws, and compliance frameworks. As a testament to its effectiveness, Relyance AI has experienced significant growth, expanding its enterprise customer base by 30% in the first half of 2024. The company expects to double its annual recurring revenue by the end of the year, with notable clients including Coinbase, Fivetran, Verkada, Snowflake, Logitech, Plaid, and Notion.
Investors recognize the transformative potential of Relyance AI in driving safe and responsible AI adoption. Umesh Padval, Managing Director at Thomvest Ventures, commended the platform for empowering Chief Privacy, Security, and Information Officers to navigate data privacy and compliance challenges effectively. Todd Graham, Managing Partner at M12, highlighted Relyance AI’s role in promoting trust, transparency, and accountability in AI governance, setting the stage for compliant and efficient AI implementation.
Client testimonials further underscore the platform’s impact, with Deborah Usry, Senior Privacy and Product Counsel at NextRoll, noting a significant increase in data processing visibility following the deployment of Relyance AI.
The funding secured by Relyance AI will fuel the platform’s continued development and expansion efforts, bolstering its position as a leader in AI governance solutions. As businesses grapple with evolving data privacy regulations and the rapid growth of AI technologies, Relyance AI stands as a beacon of innovation and compliance in the enterprise landscape.