Newsletter, 12th ed.

Newsletter, 12th ed.
The 12th Edition

Welcome to the 12th Edition of Perspective, by i3strategies®️.

Thank you to everyone who reads and subscribes to our newsletter. 

If you are new to this newsletter, here is a quick introduction: 

i3strategies®️ is a market research and strategy consulting firm with niche expertise in Financial Crime Risk and Compliance. Our expertise spans across Anti-Money Laundering, Anti-Corruption and Bribery, Sanctions, Fraud, and Cybercrime. 

Our commercial focus is on clients in Finance, Tech, Professional Services, Private Equity, and Venture Capital.

This newsletter covers the business and strategy sides of Financial Crime Risk and Compliance. Enjoy the read, and thank you!

Investments, Mergers and Acquisitions 

We have tracked YTD, $1,237,227,000 in investments announced in software companies providing solutions for the Financial Crime Risk and Compliance space. 

Source: i3strategies® Research

Here are the six (6) investments, totaling $100,300,000, announced in October 2023: 

1/ TransactionLink, announced a $5.3M seed round.

2/ Prove, announced a $40M venture round.

3/ Fingerprint, announced a $33M series C round. 

4/ Darwinium, announced a $18M series A round.

5/ Castellum AI, announced a $4M seed round.

6/ GAN Integrity, announced an undisclosed growth investment.

Innovation News

Tech Innovation

Recent innovation announcements were focused on AI models. 

1/ riskCanvas, a Genpact technology announced its integration with Amazon Bedrock. The integration allows riskCanvas™️ to leverage generative AI and large language models (LLMs) to accelerate financial crime operations. 

2/ Featurespace introduced the world's first large transaction model (LTM), called TallierLTM™️ , aimed at fraud and financial crime prevention.

3/ Jumio Corporation introduced Jumio 360° Fraud Analytics. The AI-driven solution is in a preview release to current clients and will be fully available in '24.

Market Analysis 

The Financial Crime Risk and Compliance Market is STABLE

Macroeconomic conditions continue to have an impact on accelerated growth for software companies and some services firms. Imparticular, venture-backed software companies have been making noticeable pivots in their target market segments. Overall, however, the ecosystem continues to see investment in innovation and stability in overall market participation (specifically in required software platforms vs. nice-to-have point solutions; as well as people-focused services, and labor). 

Our LinkedIn poll results for '24 budgets and spending: 

59% to software, 37% to people (FTE), and 4% to services


With two (2) months to go in '23, strategy and planning should be well underway for teams across FinCrime programs and operations. This represents an opportunistic time for solution providers to get into the planning conversations.

For solution providers staying aware of buyer needs should drive more effective product and go-to-market (GTM) strategies.

For finance and tech leaders here are some strategy topics that we recently wrote about: 

An integrated approach to fighting financial crime starts with a single point of leadership over five domains (money laundering, corruption and bribery, sanctions, fraud, and cybercrime). Vic Maculaitis has been talking about integration for over a decade and here are a couple of recent writings discussing it further. Join the conversations here and here

Breaking down siloes we have created in the broader landscape of anti-money laundering should be an imperative. The money laundering problem remains massive—the interconnectivity of illicit activities and finance compounds daily. Join the conversation here.

Click the image above to listen to the trailer!
Click the image above to schedule time with Vic Maculaitis

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