Ethos, a model risk management platform, has raised $6m in seed funding to assist banks and fintechs in managing model risk effectively.
The investment round was led by Canapi Ventures, with additional participation from Capital One Ventures and Better Tomorrow Ventures.
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Founded in 2023 by tech veterans Jett Oristaglio and Mike Fotinakis, the New York-based company provides financial institutions with tools to deploy models that make critical decisions while managing risk and maintaining regulatory compliance.
Ethos’s platform is tailored specifically for financial institutions, designed to improve risk management practices while offering the agility needed to scale.
The platform allows organisations to speed up the deployment of new models and products while ensuring that risk management standards are maintained.
With the new funding, Ethos plans to expand its engineering team and enhance its market presence.
Canapi Ventures general partner Jeffrey Reitman said: “Given Canapi’s proximity to the banking system, we deeply appreciate how model risk management (MRM) processes govern the deployment and utilisation of models.
“For banks and other financial institutions to adopt GenAI and expand their use of decisioning models, existing systems for handling MRM will not suffice.”
Ethos is currently collaborating with one of the largest US financial institutions and plans to serve banks, credit unions, and fintechs of all sizes.
Ethos CEO and co-founder Jett Oristaglio said: “At Ethos, we’re committed to empowering financial institutions to shape the future of the industry.
“We believe model risk management should be a driver of innovation, not a barrier. Our platform enables organisations to deploy AI and other models with the speed and confidence needed in today’s dynamic environment.”
Phil Kim, Partner at Capital One Ventures, added: “There is an enormous opportunity for financial institutions to continue to innovate responsibly in service to customers.
“We’re excited about Ethos’s vision to modernise model risk management and help the industry stay both resilient and forward-thinking long into the future.”
