In a significant move within the RegTech space, Dutch banking giant Rabobank has joined the Series B funding round of German RegTech firm Hawk, leading to a substantial increase in Hawk’s valuation.
Expanding the Series B Funding
Hawk, renowned for its AI-powered surveillance platform, initially raised $17 million in March during the first tranche of its Series B funding round. This round was led by Washington DC-based Sands Capital, with contributions from new and existing investors such as DN Capital, Coalition, BlackFin Capital Partners, and Picus Capital.
The entry of Rabobank into this funding round marks a pivotal moment, significantly enhancing Hawk’s market valuation, though the exact investment amount remains undisclosed.
Hawk’s Advanced Fraud Detection
Founded in 2018, Hawk has rapidly scaled its operations globally, processing billions of transactions across 60 countries. The company’s platform, powered by Explainable AI and flexible cloud infrastructure, helps financial institutions detect and prevent fraud and money laundering.
Hawk collaborates with prominent financial institutions and partners, including North American Bancard, Moss, Banco do Brasil Americas, Mambu, Visa, and Lexis Nexis. Impressively, 40% of its revenues are derived from the US market.
Rabobank’s Strategic Investment
Martijn Scholtes, Managing Director at Rabo Investments, expressed enthusiasm about the partnership: “Rabobank has been working with machine learning applications for many years. What impressed us most about Hawk is that they’re delivering compelling results using explainable AI. Their advanced screening, detection, and monitoring capabilities align very well with our mission to build a more secure and robust financial ecosystem.”
A Future of Enhanced Financial Security
Hawk’s platform stands out in the RegTech industry for its ability to offer advanced screening and monitoring capabilities, ensuring financial transactions’ security and integrity. This strategic investment by Rabobank underscores the bank’s commitment to leveraging cutting-edge technology to enhance financial security and operational efficiency.
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