Intelligo, an Israeli startup providing AI-powered background check solutions to investors, financial institutions and companies, announced today that it has raised $ 22 million from Felicitas Global Partners, one of its longtime clients. The company said the growth round, which brings its total fundraise to $ 44 million, will drive the development of its AI-powered risk intelligence platform – Clarity – and help establish stores in additional geographic areas.
For years, due diligence processes such as background verification have been manual and time consuming (typically taking 10-15 days). Agencies that provide these services often struggle with delays and delays, leaving end users – people who require due diligence – with no choice but to grant temporary approvals. In some cases, analysts may also miss important sources of information such as news reports.
Automatic background check
Founded in 2014 by Shlomo Mirvis and Dana Rakovsky, Intelligo tackles this problem through automation and claims to bring speed and accuracy into the entire process. The company’s Clarity intelligence system uses multiple layers of AI and automation to search more than 400,000 public data sources and gather all the relevant information (legal, professional, regulatory, financial, online media) needed to make a decision about a particular person or company .
A team of in-house experts then reviews this information to create the final report for the client.
“Every client has an account where they can log in and run a report anytime from anywhere, share and collaborate with other team members and manage the account in a very simple way,” said Mirvis, who is also the CEO of company, told VentureBeat. The dashboard provides a 360-degree view of the collected data with full information about the sources and links to original documents, allowing customers to examine potential red flags in the risk profile.
Currently, the platform returns reports between 30 minutes and five days, and it is used by hundreds of clients, primarily investment banks, private equity firms and hedge funds with a total assets under management of over $ 500 billion. Plus, even after producing the report, Clarity can continue to monitor the target and provide alerts when and when something changes in the background profile.
“We use our AI algorithms to weed out irrelevant data and deduplicate data to keep only the most relevant data in the report and help individuals reach the right conclusions. Our AI also uses advanced natural language processing analysis to identify negative news articles written about our topics, ”said Mirvis.
Intelligo is not the only one that solves the problem of older background checks with technology. Over the last few years, a number of players have emerged in the same field, including Checkr, HireRight, Kroll, K2 Integrity, Paycom and Exiger.
“There are a number of companies in the background check and technology area for human resources targeting different ends of the market. Most are focused on general control of employment at all levels – from minimum wage positions and upwards. However, Intelligo is focused on the high end of the market for both pre-hire and pre-investment decision-making of companies as part of their risk intelligence, “Mirvis added.
Targeting accuracy and revenue growth
Going forward, the company aims to double its number of employees and expand the capabilities of its risk intelligence platform to attract more customers.
Although the CEO did not share exactly how the company plans to improve the platform, he noted that Intelligo continues to accept recommendations from customers and improve the accuracy of the solution. Part of the effort is likely to be driven towards covering an even broader base of data sources, as background check reports are only as good as the data on which they are based. The company has experienced revenue growth of 200% over the past three years and expects to reach a growth of 300% this year.
“The last 18 months have been very positive for Intelligo, as remote and hybrid work structures have made due diligence processes and recruitment even more crucial. A lack of face-to-face interaction removes the ability to create intuitive, personal connections so organizations are even more dependent on getting accurate and thorough intelligence that provides a 360-degree view of who the candidates really are, ”said Mirvis.
Globally, the overall market for due diligence, prior investment and pre-employment is estimated to be valued at $ 17 billion.
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