Business relationships now develop faster than the processes designed to protect them. Xapien’s dynamic due diligence approach addresses this long-standing challenge. The company announced a $56 million investment round led by Spectrum Equity. Spectrum Equity is a growth equity firm focused on risk and compliance technology. The firm brings two decades of experience across the sector. Its previous investments include World-Check and Verafin.
Existing investor YFM Equity Partners also participated in the latest funding round. Xapien will use the investment to strengthen its presence across the United States. The company already generates 50% of its revenue in the U.S. Therefore, Xapien plans to expand its Boston office. The company will also relocate its CEO and other senior leaders to the region. Business relationships remain an important source of ongoing risk for organizations. However, limited budgets and time often restrict due diligence coverage.
Therefore, organizations can only review a subset of their counterparties. However, this approach can create significant blind spots in third-party risk visibility. Only 30% of organizations say they have the resources to assess half their business relationships. Hence companies require scalable options that can scale risk coverage without hindering business activity. Xapien is tackling this challenge with its AI-native dynamic due diligence platform. The technology offers wider coverage of counterparties, without compromising on speed and scalability.
“Third-party due diligence has remained stubbornly manual for twenty years,” said Chris Green, CEO of Xapien. “Hence, businesses have had to ration their scrutiny to a subset of relationships with one-off checks at the point of onboarding, leaving them massively exposed. This funding lets Xapien pursue its mission to give compliance, legal, and procurement teams full visibility on every counterparty, all the time, giving organizations the confidence to move at speed.”
AI-Powered Due Diligence Improves Risk Visibility
Xapien blends automation with compliant-grade research and analysis. The platform searches a wide variety of sources on the open web and in corporate records. It also checks sanctions lists and media sources in any language. The system also de-duplicates information about thousands of similarly named people and entities. The platform then conducts a human-like risk analysis of the collected information. It generates a clear, fully referenced and auditable report in minutes.
This process can greatly reduce the time required for traditional due diligence. Get detailed risk information in minutes, not days. Xapien clients claim 90% of onboarding cases can be fully automated. This allows analyst teams to spend more time on the complex and higher-risk cases. The company is also developing Xapien Live, which is in beta. This solution provides companies with a continuous view of counterparty risk.
This capability supports a shift from static checks toward continuous risk surveillance. Therefore, organizations can monitor changes beyond the initial onboarding process. Chris Green, CEO of Xapien, highlighted the challenges facing traditional due diligence.
Spectrum Equity Supports Xapien’s Growth Strategy
Spectrum Equity also sees significant potential in Xapien’s approach to compliance automation.
Adam Margolin, Managing Director, Spectrum Equity added “Xapien represents a rare opportunity for Spectrum to back a team with deep domain expertise that has been laser focused on harnessing innovative AI technology to transform and automate enhanced due diligence. Xapien is fast emerging as a new standard for counterparty risk management, and we are excited to support Chris, Dan and Shaun in this next stage of growth.”
Xapien was founded in 2018 by Dan Secretan and Shaun O’Mahony. CEO Chris Green joined the company in 2022. All three leaders previously worked in BAE Systems’ financial crime and national security divisions. Xapien’s collective experience has contributed to how it approaches risk and compliance technology. Today the company serves a variety of organizations around the globe. Its customers are multinational corporations, law firms, private banks, universities and non-profits.
Xapien is powering automation programs for leading professional services firms. The company has seen continued market adoption across a number of industries. Today, Xapien is used by 350 clients and partners in 15 countries. These organizations leverage the platform to update and transform their due diligence capabilities. Representative clients include KPMG, Greenberg Traurig, ABB and Dow Jones Risk & Compliance.
Xapien Targets a New Standard for Third-Party Risk
Industry leaders have also recognized the role of Xapien in modernizing due diligence. Joel Lange, EVP & General Manager, Risk and Enterprise Dow Jones, discussed the company’s impact. “For too long, compliance teams have had to choose between the depth of their research and the speed at which they need to act. Xapien shows that automation can deliver both, helping organizations conduct rigorous due diligence more efficiently and make faster, smarter risk-based decisions.”
Xapien built its platform for organizations operating in highly regulated environments. The technology helps transform existing due diligence workflows and increase operational throughput.
This allows organizations to scale compliance operations more effectively. They can onboard business partners more quickly with better risk visibility. The new funding will allow Xapien to continue to grow and build out its product. Specifically, it intends to beef up its U.S. operations. Meanwhile, its dynamic due diligence platform continues to meet growing third-party risk demands. The approach is based on AI, automation, ongoing surveillance, and deep risk analysis.
Xapien’s mission is to make dynamic due diligence the global standard. Its broader mission is to support organizations in managing third party risk across all business relationships. This approach is how Xapien intends to eliminate the traditional limitations on due diligence coverage. The company also hopes to help compliance, legal and procurement teams act with more confidence.
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News Source: Businesswire.com
