US forensic accounting software provider Valid8 Financial raises $8.5m Series A

Colorado-headquartered forensic accounting software provider Valid8 Financial today (30 November) announced that it has raised $8.5m Series A funding. Valid8 provides accounting and law firms with evidence for a wide variety of complex financial matters and white-collar crime investigations, including Medicaid fraud, partnership disputes, asset division, high-net-worth divorces, M&A diligence, audit and Chapter 11 bankruptcies.

“Prosecutions and civil litigation stemming from fraud and other financial malfeasance are among the most complex cases in our justice system,” said Chris McCall, CEO and co-founder of Valid8. “Forensic accountants and attorneys require certainty in their investigations, which is why it may take months or even years to uncover the truth behind thousands or millions of financial transactions. Valid8’s unique approach to delivering Verified Financial Intelligence leverages AI to expedite the process while meeting the highest data quality standards for courtroom-ready evidence that expert witnesses can rely on.”

The company uses AI and automation technology to extract and categorise financial data from numerous sources, providing visualizations to demonstrate the flow of funds.

“Using Valid8’s software has fundamentally changed how our team works,” said Jason Wright, managing director at Stout, a global investment bank and advisory firm. “Before, it took us significant time to evaluate even a small sample size. With this software, we gain a comprehensive understanding of the entire financial picture in less time. Our team is freed from the tedious review of each and every statement and transaction – time-consuming work that nearly every accountant wishes to avoid.”

The funding was led by Silverton Partners with participation from Touchdown Ventures, First Trust, and Capital Midwest. Roger Chen, a partner with Silverton Partners, will join the Valid8 board.