MOSTLY AI, an Austrian data privacy startup, has raised $25 million in Series B funding led by Molten Ventures with participation from existing investors Earlybird and 42CAP and new investor Citi Ventures.
The Series B funding announcement comes just shy of two years after a $5 million Series A round, and it’s expected to help the company expand in Europe and the U.S. and accelerate global hiring.
MOSTLY AI’s technology, which uses synthetic data for AI model development and software testing, is particularly popular in baking and insurance, and it’s among the most innovative, allowing companies to avoid becoming ensnared in data privacy issues.
“2022 will be the year of synthetic data. Synthetic data helps solve some of the industry’s most vexing issues when it comes to AI. It eliminates concerns about data privacy, it can be freely shaped and formed in order to accelerate AI initiatives, and it enables enterprises to augment and de-bias their data sets,” MOSTLY AI CEO Tobias Hann said in a news release. “We’re extremely excited about the future of synthetic data, and to partner with Molten Ventures, which shares our vision for fundamentally changing how companies work with data.”
A 2021 Gartner study found that about 60 percent of the data used for AI and analytics projects by 2024 will be synthetically generated.
Synthetic data is generated by an algorithm trained on actual data sets; the goal is for the data to resemble a company’s original customer data so that it accurately reflects behavior and patterns but is absent any personal data points from living individuals. In addition to helping companies comply with privacy protection regulations like GDPR in Europe or CCPA in California, synthetic data can be generated quickly and in abundance.
MOSTLY AI’s Series B funding round is just the latest signal of the company’s rapid growth; in November 2021, it became the first synthetic data provider to achieve ISO 27001 certification.
About MOSTLY AI
MOSTLY AI works with multiple Fortune 100 banks and insurers in North America and Europe, helping companies get business value out of synthetic data.