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Exclusive: Compliance software startup Greenboard raises $4.5M seed

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Illustration: Sarah Grillo/Axios

Greenboard, which has developed software to automate financial back-office operations, raised $4.5 million in seed funding led by Base10 Partners, the company tells Axios exclusively.

Why it matters: Since the global financial crisis, increased regulatory pressure has driven the cost of compliance for financial services companies up by more than 60%.

How it works: Greenboard has built several distinct modules to address various pain points in financial compliance.

  • It integrates into systems that compliance teams already use and improves visibility into communications archiving, trade monitoring, and compliance review of vendors and marketing materials.

Between the lines: Feldman became interested in software for back-office operations after building software that automates government filings at 401(k) startup Guideline.

  • "During my time there, I recognized that the software that existed for financial compliance ... was really not up to standards with the types of types of software that, frankly, ought to exist," he says.

The big picture: Greenboard uses AI and machine learning to extract information from various data sources and documents and reduce the need for manual reviews.

  • Doing this provides compliance officers with better tools for monitoring activity across systems that previously didn't connect.
  • "All of this has historically been done in disparate platforms, or frankly, for some of these things, it's been emailed in a spreadsheet," Feldman says. "By bringing the data into one place, you can connect the dots."

Zoom in: Y Combinator, General Catalyst, Wayfinder Ventures, Liquid2 Ventures, Twenty Two Ventures, Rogue Capital and Transpose Platform also participated in the Austin company's seed round.

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