ModelOp Raises $10M Amid Regulatory Surge

ModelOp, the frontrunner in AI Governance software for enterprises, has just secured a $10 million Series B equity financing round, led by Baird Capital with participation from existing investors. This funding comes on the heels of ModelOp’s recent triumph at the 2024 AI Breakthrough Awards, where it clinched the title of “Best AI Governance Platform.”

The fresh capital injection is set to fuel ModelOp’s expansion plans, focusing on accelerating go-to-market efforts and driving product innovation. The company has already made significant inroads in the enterprise space, boasting an impressive roster of Fortune 500 clients including Fidelity Investments, FINRA, and Bristol Myers Squibb.

ModelOp’s platform serves as a single source of truth for enterprises, offering real-time visibility into AI risk, performance, health, and value. Through automation, the software ensures that all AI initiatives remain transparent, compliant, and aligned with organizational goals.

Pete Foley, CEO of ModelOp, expressed his enthusiasm about the funding round, stating, “This exciting milestone will fuel the continued growth of our leading AI Governance software. Baird Capital is an incredible partner and we’re proud to tap their deep expertise in B2B technology as we help enterprises get started with governance and scale their AI initiatives responsibly.”

The investment coincides with the release of ModelOp version 3.3, the third generation of the company’s software. This latest iteration introduces the world’s first AI Governance Score, a groundbreaking feature that provides executives with a standardized metric to measure risk and compliance across diverse AI initiatives. This score is applicable regardless of whether an organization is using generative AI, in-house systems, third-party vendors, or embedded AI solutions.

The timing of ModelOp’s funding round and product release couldn’t be more opportune. As generative AI accelerates digital transformation, many enterprises find their AI initiatives hampered by risks and operational bottlenecks stemming from inadequate AI governance. A recent interview with Accenture’s CEO highlighted this challenge, revealing that less than 2% of executives can identify how AI is being used in their companies and its associated risks.

Moreover, the regulatory landscape for AI is rapidly evolving. With new regulations being introduced at state, federal, and international levels – including the EU AI Act that came into force on August 1 – compliance has become a top priority for enterprises.

Jim Pavlik, Partner with Baird Capital’s Venture Capital team, shared his perspective on the investment: “We’re very excited to partner with the ModelOp team in their mission to accelerate AI innovation while ensuring appropriate enterprise risk management and regulatory compliance. We’ve been extremely impressed by ModelOp’s robust software capabilities, strong leadership and blue chip customer base, and look forward to supporting the company’s future growth.”

With this new capital, ModelOp plans to enhance its market-leading automation capabilities. These improvements will focus on establishing visibility into AI initiatives and enforcing policies consistently, helping organizations maintain compliance even as regulations continue to evolve rapidly.