Brussels – June 19, 2023. Yields.io, a leading provider of model risk management software, has announced that it has raised €4.8 million in a funding round led by Giesecke+Devrient Ventures. Existing investors Pamica, the investment company of Michel Akkermans, and Volta Ventures have also contributed. Michael Hochholzer, Managing Director of G+D Ventures, joins Yields.io’s Board of Directors.
With the rapid growth of AI capabilities, AI risk is top of mind for many business leaders and regulators. Although AI risk management is a fairly new domain, it is part of a broader field called Model Risk Management (MRM) that has been regulated in the financial industry for over a decade. The advent of AI and AGI (Artificial General Intelligence), together with new regulations, stricter enforcement, and increasing reliance on complex analytics overall, has led to a spike in the demand for MRM solutions. As an award-winning provider of a trailblazing MRM platform, Yields.io empowers teams by automating model documentation and testing, as well as by enforcing compliance to model risk standards and policies.
As its technology has been validated by Tier 1 global financial institutions, Yields.io will use the proceeds of this funding round to accelerate its geographic expansion. The main focus area will be the US where model risk requirements are amongst the strictest globally. The network of G+D will furthermore serve as a catalyst to strengthen Yields.io’s position in the DACH region where the company is already supporting several key players. The funds will furthermore enable the company to execute a solid growth strategy toward other (non-financial) verticals, such as healthcare and manufacturing, since these industries are deploying AI algorithms in high-risk environments and will soon have to comply with new model risk regulations such as the European Union’s AI Act.
“Every organization that uses mathematical models is exposed to what we call ‘model risk’. In the financial sector, managing this risk is a regulatory requirement. Over recent years, we have gained expertise in this field, with global giants such as BNP Paribas and HSBC among our client base. With the advent of foundation AI models, we see an emerging area where best practices have not yet been established, and where regulation is still lagging. This funding round, coupled with the wealth of knowledge and the extensive network brought in by our team and investors, gears us up to meet this urgent need,” says Jos Gheerardyn, CEO of Yields.io.
Michael Hochholzer, Managing Director of G+D Ventures, adds: “We are delighted to lead the investment round with Yields.io, the pioneering player in automated Model Risk Management. As not only financial models, but also highly complex AI models are increasingly central to critical operations in a variety of markets, the need for robust Model Risk Management is paramount. Automation in MRM will leverage a very large economic potential for Yields.io’s customers – and we regard the company as the category leader in this growing market segment. We are thrilled to join Jos and his extraordinary team on this growth journey.”
Michel Akkermans, Executive Chairman of Yields.io, concludes: “Since our first investment in December 2017, Yields.io has been growing in terms of customer and staff numbers, as well as product capabilities. Model risk management, especially in the current context of generative AI and increasingly sophisticated models, makes the company more relevant than ever”.
Yields.io offers technology to automate model documentation and validation activities, empowering financial institutions with a comprehensive overview of model risk. The award-winning solution provides actionable insights to enhance model performance and effectively manage exposure to model risk. Yields.io’s technology is trusted by Tier 1 global financial institutions, regional banks, and insurance companies. With offices in Ghent (Belgium) and London (U.K.), the company is now expanding its presence in the United States.
About G+D Ventures
G+D Ventures was founded by experienced venture capitalists in 2018. It is a theme-driven investor focusing on growth-oriented companies, whose innovations promote and protect trust in our society. With this goal in mind, it has established a €50m co-investment vehicle with the European Investment Bank (EIB) and the Giesecke+Devrient Group (G+D), dedicated to investing in early-stage European TrustTech startups.
Pamica is Michel Akkermans’ investment company. Michel is a serial entrepreneur in fintech companies. He has been the Chairman and CEO of many successful companies, including FICS and Clear2Pay. After the global payment solution company Clear2Pay was acquired by FIS in 2014, he became an active investor in and board member of several companies and private equity organizations, as well as a venture partner and Chair of Volta Ventures.
About Volta Ventures
Volta Ventures is a seed and early-stage venture capital firm focused on software startups in the Benelux region. With an initial investment range of €300K to €2M, Volta Ventures has €125M to invest in promising companies. The firm has a successful track record, with recent notable exits in Cashforce, Widget Brain, Qualifio and Vamp. Based in Gent and Amsterdam, Volta Ventures is committed to empowering the next generation of technology innovators and supporting their growth.