Hummingbird raises $8.2 mn to automate financial compliance technology

Source: IBS Intelligence 2020-07-19

Joe Robinson, co-CEO Hummingbird

San Francisco based Hummingbird, provider of a modern platform for anti-money laundering (AML) compliance technology, has announced that the company has raised $8.2 million in its Series A funding round.

The investment round was led by Flourish Ventures with support from notable Stripe alumni Lachy Groom and Jon Zieger, and continued support from seed investors including Designer Fund, Hombrew, and TTV Capital, for total funding to date of $11.8M.

Hummingbird performs compliance investigations and reporting for smart financial institutions. This includes navigating from how regulation applies to FinTech startups, to modernizing cumbersome legacy systems. The firm has helped financial institutions with trillions in assets under management, as well as tech-savvy trailblazers such as Upgrade, Etsy and Brex orchestrate their compliance programs.

“We invested in Hummingbird since its inception because it is a business at the intersection of two important trends accelerated by the pandemic – finance embedded in all our digital experiences and the digitization of regulation. The Hummingbird team cracked the code for automation in AML where others have struggled,” said Kabir Kumar, Director, Flourish Ventures.

Founded in 2017, Hummingbird provides two main products: case management, investigation, and reporting platform; and an API for validating and filing regulatory reports. These products reduce costs, improves accuracy, and automates financial compliance programs, while also facilitating collaboration and technological advancements. The firm is planning to use the finance to support its expansion into new areas, including transaction disputes and consumer protections in lending; continue its operational growth; and enter the European market, starting with Ireland and the U.K.

The FinTech is anticipating an increase in regulatory dynamics and is prepared to support financial institutions and banks as the industry adapts to the pandemic’s economic stressors.

Recently, Bond raised $32 mn to drive financial innovation and inclusion.

“Partnerships between banks and FinTech startups have brought important services to market, but the regulatory complexities of these relationships pose large obstacles to their success. The Hummingbird team has harnessed compliance expertise with technology expertise to improve the overall viability of the fintech marketplace,” said Hummingbird co-founder and former regulator Matt Van Buskirk.

Hummingbird

Hummingbird raises $8.2 mn to automate financial compliance technology

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