Norm Ai, a leader in AI-driven regulatory compliance solutions, has raised $27 million in a Series A funding round led by Coatue. The funding will support the company’s innovative platform that automates regulatory compliance processes for businesses, with participation from key financial institutions such as Bain Capital Ventures and Blackstone.
Norm Ai Raises $27 Million in Series A Funding to Enhance Regulatory Compliance Platform
NEW YORK, June 25, 2024 – Norm Ai, a burgeoning leader in AI-driven regulatory compliance solutions, has successfully raised $27 million in a Series A funding round. The round was spearheaded by Coatue, with significant participation from prominent financial institutions such as Bain Capital Ventures, Blackstone Innovations Investments, New York Life Ventures, Citi Ventures, and TIAA Ventures. This latest injection increases Norm Ai’s total fundraising to over $38 million in just 11 months.
Norm Ai has pioneered an innovative platform that automates the conversion of complex regulations into executable computer code. This is achieved through specialised algorithms and large language models that translate regulatory texts and corporate policies into decision trees. These trees are then processed into what the company calls “Regulatory AI Agents”, allowing businesses to conduct compliance checks more efficiently and accurately.
The company’s advanced platform is being deployed by Fortune 100 companies for regulatory assessments, particularly in areas such as insurance and asset management. Norm Ai claims that their technology significantly reduces the time needed for compliance checks, providing businesses with clear and actionable compliance insights in minutes rather than days. The platform also facilitates initial self-serve compliance reviews by business users, streamlining various stages of regulatory compliance.
John Nay, the Founder and CEO of Norm Ai, emphasized the importance of this technological milestone. “I’ve been conducting research at the intersection of AI and law for more than a decade. We are now at an inflection point in AI capabilities that, when properly harnessed, unlock massive improvements in regulatory compliance workflows across the economy. To have the Series A backing of such notable institutions is a testament to Norm Ai’s leadership in Regulatory AI,” he stated.
Sri Viswanath, General Partner at Coatue and former Chief Technology Officer of Atlassian, is set to join Norm’s board. He expressed his enthusiasm over Norm Ai’s potential, indicating that Coatue has been significantly impressed by Norm’s vision. “We are thrilled to double down on Norm as they seek to grow into a transformational AI company, and I look forward to supporting John and his team on their next steps,” he remarked.
Similarly, John Stecher, Chief Technology Officer of Blackstone, described Norm Ai as a scalable and efficient solution that can drive significant improvements in regulatory compliance operations. Blackstone, one of the world’s largest alternative investment firms, has shown confidence in Norm Ai’s ability to execute and innovate swiftly.
Matt Harris, a partner at Bain Capital Ventures, highlighted the growing challenge of regulatory compliance in the fintech and banking sectors. He noted, “The largest headwind for these companies now is the accretion of regulatory sludge – filling out forms, cross-checking information, ticking and tying, etc. – and how this increasingly slows down businesses and adds risk. This is the problem that Norm Ai tackles head-on and why we at Bain Capital Ventures are so excited about backing them.”
Norm Ai’s platform has also garnered interest from other major players in the financial sector. Joel Albarella of New York Life Ventures emphasised the transformative potential of Norm’s technology for enhancing regulatory frameworks within the insurance industry. Wayne Baker of TIAA Ventures expressed similar optimism about the scalability of Norm Ai’s platform.
In addition to these investors, Citi Ventures and Jefferson River Capital, the family office of Tony James, former President and COO of Blackstone and current Chairman of the Board of Costco, participated in the funding round, further underscoring the broad-based confidence in Norm Ai’s strategic direction.
With the new funds, Norm Ai aims to expand its technological platform and client base, while also scaling up its workforce across various domains including software engineering, AI engineering, legal engineering, and sales. This expansion underscores Norm Ai’s commitment to revolutionising the field of regulatory compliance through advanced AI solutions.
