AppZen Nabs $2.9M Seed Round Led by Resolute Ventures to Revolutionize Back Office Automation with Artificial Intelligence
Round to Spur Growth of World’s First Automated Expense Report Auditing and Compliance Solution
SUNNYVALE, CALIF. (June 22, 2016) – AppZen, the first artificial intelligence (AI) solution for back office automation, announced today that it has closed a $2.9 million seed funding round led by Resolute Ventures to help grow the company, which offers the first automated expense report auditing and compliance solution. As part of this round, AppZen also received investments from a number of financial technology focused investors, including Bloomberg Beta, Silicon Valley Bank and MasterCard, as well as FundersClub.
“We’re thrilled to announce that we have closed our seed round – the size and participants of which are a testament to our vision and current automated expense report audit solution,” said Anant Kale, CEO of AppZen, which is based in Sunnyvale, Calif. “Using AI we’re able to automate processes that have required a human decision, which is expensive and prone to error. We are going to be able to save enterprises a lot money and heartache with compliance issues, and we’re very excited about that.”
Despite the exorbitant amount of money lost in expense fraud – a recent survey by the Association of Certified Fraud Examiners (ACFE) reports $441 billion in travel and expense fraud annually – very few companies fully audit expenses. Due to the high cost of expense auditing, most companies use random sampling and threshold-based auditing to catch policy violations or fraud, which still leaves them at risk.
With AppZen, which uses patent-pending Natural Language Processing (NLP) machine learning algorithms, companies can review expense report data, cross-check it with external sources and social media in real-time, and detect compliance problems before it is too late. The automated tool, which also offers a “virtual assistant” function that helps employees gather expenses for reporting, lowers expense processing costs up to 80 percent and identifies up to 10 times more financial risks.
“There is a huge opportunity for automating back office functions, but we haven’t seen anyone nail it – until now,” said Raanan Bar-Cohen, Partner at Resolute Ventures. “With its AI technology, AppZen is making total compliance for enterprise attainable, and we’re excited to be a part of it and eager to watch as the company applies its technology to other back office functions.”
AppZen, which graduated 500 Startups in the Spring of 2015, also seamlessly integrates with all existing expense reporting tools, including Oracle (NYSE: ORCL), and has already amassed a number of prominent enterprise clients, including Hitachi, SunRun (NASDAQ: RUN) and Cantor Fitzgerald.
For more information about AppZen, please visit www.AppZen.com.
AppZen, which is based in Sunnyvale, Calif., is the first artificial intelligence (AI) solution for back office automation. The company, which graduated from 500 Startups and raised $3M in funding, including from Resolute Ventures, Bloomberg Beta, Silicon Valley Bank, MasterCard and FundersClub, uses patent-pending Natural Language Processing machine learning algorithms to analyze data and automate back office functions. AppZen’s enterprise level automated expense reporting and auditing product reviews expense report data, cross-checks it with external sources and social media in real-time, and detects compliance issues and fraud – a half trillion dollar issue in the U.S. The company works with a number of enterprises, including Hitachi, SunRun and Cantor Fitzgerald, and has partnered with technology companies, including Oracle. For more information about AppZen, visit www.appzen.com.