Calvin Risk founders Syang Zhou and Julian Riebartsch
calvin risk
The race to turn artificial intelligence (AI) hype into reality is on. Businesses use AI to claim the benefits it purports to offer, from increased efficiency and effectiveness to strategic advantages. However, as organizations ramp up their use of AI, the challenge is that many AI solutions are opaque, exposing them to operational and regulatory risks.
Calvin Risk, a Swiss-based startup that today announced the successful completion of a $4 million seed funding round, pitches itself as the solution to this dilemma. “As the number and complexity of AI models increases, so too does the risk,” warns Julian Riebartsch, the company’s CEO and co-founder with Dr. Syang Zhou. “Significant risks of financial and reputational damage currently exist, and those risks have increased since the mass adoption of generative AI (GenAI).”
The problem is that GenAI models typically operate as “black boxes.” Many companies use these models as foundational technology and build models according to their needs and requirements, but this exposes them to hidden risks and vulnerabilities.
“There is no standardized approach to testing using these models,” warns Liebarch. “It’s difficult to know how to test a particular model for performance or compliance with regulations.”
Calvin Risk’s software, which was initially developed at academic institution ETH Zurich before launching the company as a spin-out in 2022, therefore aims to fill that gap. It provides a digital approach to governance, allowing businesses to vet technology through a modular framework that properly identifies and assesses risks. It also enables automated testing of AI projects as they progress from development to deployment.
Liebartsch sees demand for the software growing rapidly as authorities around the world tighten regulations on AI. For example, in the European Union, the upcoming AI law will introduce a set of strict requirements for AI systems, requiring companies to assess and document the risks of their AI models. Companies that do not comply will be subject to severe penalties.
Calvin Risk has initially focused on customers in the financial services sector, where concerns about regulation and the cost of failure are particularly high. The company has developed the software in partnership with two of the UK’s leading financial services institutions, insurer Aviva and Lloyds Banking Group.
However, with increased regulatory scrutiny, other areas are also increasingly focused on how to implement AI more securely. For example, Calvin Risk has entered into a partnership with Lufthansa Industry Solutions and has begun working with customers in sectors such as pharmaceuticals and telecommunications.
The company’s solutions have received excellent reviews. The platform was named the Top AI Risk Management Tool for Banking by Hub France IA, a non-profit organization focused on the responsible use of AI, and was named Model Risk Management Product of the Year at Risk.net’s Markets Technology Awards 2024. Awarded the Year.
Investors are also enthusiastic about the company’s potential. Today’s funding round was led by Join Capital and Seed + Speed Ventures and brings the total amount of funding the company has raised since 2022 to more than $5 million.
“Calvin Risk’s innovative approach, combined with its strong team and clear vision, will make it a critical resource for organizations navigating the complexities of AI compliance and risk management,” said Founding Partner of Join Capital. says Tobias Schirmer. “We believe Calvin Risk will play a pivotal role in shaping the future of AI governance and are excited to support their journey.”
Alexander Kelpin, investor and managing partner at Seed + Speed Ventures, added: ”
Calvin Risk will use the funds to invest in business development and go-to-market activities, particularly as it seeks to increase its penetration into the financial services sector and expand into other industries. “Right now, our focus is on scaling the company,” Liebartsch added.
