Swiss AI start-up Calvin Risk secures USD $4m seed funding

Calvin Risk, a Swiss AI governance start-up, has received USD $4 million in seed funding to support its mission of making enterprise AI systems more accountable and compliant.

Emerging as a spin-off from ETH Zurich, Calvin Risk aims to address the growing complexities associated with AI risk management as usage of AI technologies becomes ubiquitous in various sectors. The funding round has been led by Join Capital and seed + speed Ventures, marking a significant milestone in the company's development.

AI models are commonly seen as "black boxes", making it challenging for businesses to discern decision-making processes and potential biases within these systems. The company seeks to confront and resolve such issues, which can pose risks to both the operation and reputation of businesses if left unchecked. The upcoming EU AI Act further emphasizes the need for strict compliance, compelling companies to document and assess AI risks thoroughly.

Julian Riebartsch, CEO and Founder of Calvin Risk, stated, "With AI systems becoming central to operations, proper corporate governance must now include explicit AI risk management at the Board level. Through our governance and risk management platform, we provide businesses with deep insights into their AI inventory, enabling them to analyse technical, ethical, and regulatory risks qualitatively and quantitatively."

Calvin Risk offers a platform that utilizes adaptive assessments and continuous monitoring to provide a real-time overview of a company's AI portfolio, assessing potential risks and their respective impact. This approach is crucial as the EU AI Act introduces severe penalties for non-compliance.

The startup's product facilitates proactive AI governance through governance digitization and risk evaluations. This approach differentiates Calvin Risk from other platforms which typically focus on documentation or post-deployment solutions, providing preventive, pre-deployment assessments to enterprises.

A comment from Alexander Kölpin, Investor and Managing Partner at seed + speed Ventures, illustrated the promise seen in Calvin Risk, "As an investor, I see enormous potential in Calvin Risk to help shape the emerging market for AI risk management. The combination of technological excellence from academia and in-depth industry expertise makes this startup a real help for all those companies that use and build relevant AI-based business processes."

In recent months, Calvin Risk has secured partnerships with prominent global institutions, including Aviva, which utilizes Calvin Risk's advanced tools to ensure AI system robustness and fairness. The company has also joined the HITS Innovation Garage, providing opportunities for collaboration with Generali's diverse business units.

Notably, Calvin Risk's collaboration with Lufthansa Industry Solutions led to the first GenAI model earning an "Assessment Seal Certification" from TÜV Süd, an important credential as industries prepare for the enactment of the EU AI Act.

The recognition from Hub France IAs, naming Calvin Risk as the top AI risk management tool for banking, and the award for Model Risk Management Product of the Year from Risk.net's Markets Technology Awards 2024, underscores its growing reputation across different sectors, including banking, transportation, and telecommunications.

Tobias Schirmer, Founding Partner at Join Capital, added, "We are thrilled to be the lead investor in Calvin Risk's seed round. Their innovative approach, combined with a strong team and a clear vision, positions them to become a vital resource for organisations navigating the complexities of AI compliance and risk management. We believe Calvin Risk will play a pivotal role in shaping the future of AI governance and are excited to support their journey."

Calvin Risk plans to leverage the funding to enhance its product development, expand the platform's capabilities, and extend its market presence across Europe, as the demand for robust AI governance tools continues to grow.

CEO Julian Riebartsch further noted, "Our goal is to ensure every enterprise can innovate confidently, while maintaining the highest standards of safety and compliance."