#None #Audit Technology #Ten Coves Capital #Circit

Circit Secures $22 Million Growth Equity Funding to Revolutionize Audit Verification

Circit, a prominent platform specializing in audit confirmations and financial data verification, has recently secured $22 million in growth equity funding. This latest financing round is aimed at fostering the company's growth and expanding its reach within the U.S. market. Led by Ten Coves Capital, a New York-based growth equity firm, this investment reflects a robust interest in enhancing the infrastructure supporting professional audits.

The funding round featured strong participation from existing investors, including Aquiline and MiddleGame Ventures, who bring significant experience in nurturing companies involved in enterprise technology and financial services. This backing positions Circit to effectively advance its mission of embedding trusted data at the core of every audit through innovative solutions.

Growth in Adoption and Network Expansion

Over the past year, Circit has witnessed remarkable growth, with adoption across more than 400 audit firms, including all of the Top 20 global networks. The verification network now spans over 30,000 financial institutions, funds service providers, and other critical evidence suppliers. This expansive network facilitated the confirmation of assets and liabilities for around 150,000 corporate entities, independently verifying over 100 million transactions within a single year.

As the demand for precise audit data surges among the largest corporate entities, auditors are increasingly expected to harness AI-enabled technology. Circit is poised to meet this demand by evolving traditional audit practices into a realm characterized by enhanced quality and efficiency.

Enhancing Audit Processes with Technology

Circit's platform provides the capability for auditors to access source-verified audit evidence, effectively replacing outdated, manual workflows with direct, secure data connections. By fostering these connections among audit firms, financial institutions, law firms, and corporate clients, Circit enhances audit quality, expedites processes, and diminishes the chances of financial fraud.

The key offerings of the Circit platform include:

• - Digital Audit Confirmations: Allowing for confirmations across bank and non-bank-held assets and liabilities.
• - Direct Access to Transaction Data: Providing auditors with permissioned access to bank-verified transaction records.
• - AI-Driven Workflows: Streamlining collaboration between auditors and clients while ensuring critical evidence is seamlessly integrated into the audit files.

As the audit sector transitions away from strictly manual processes, Circit emerges as a pivotal player in furnishing a reliable verification layer that empowers future audit practices. The investment will also be utilized for product innovation, enhancing AI-powered workflows, improving bank API connectivity, and expanding the customer success team, particularly within the U.S. market. Plans indicate a goal of doubling the Circit workforce within the next two years.

Vision for the Future

David Heath, Co-Founder and CEO of Circit, expressed excitement over the new investors, emphasizing the need for modernization in audit infrastructure. He stated, "Audit confirmations are fundamental to trust in financial reporting. Circit was built to change that by providing auditors independent access to verify all asset and liability types."

As financial landscapes evolve through open banking initiatives and enhanced digital frameworks, Circit aims to establish a robust infrastructure to support AI-driven audit testing and workflows, ultimately contributing to enhanced integrity in financial reporting.

Steven Piaker, Managing Partner at Ten Coves Capital, noted Circit’s pivotal role during this transformative period in the audit profession. He remarked on the significance of their network-driven model and API-first technology, which collectively position Circit as a trusted verification partner for modern audit and compliance workflows.

As Circit continues its path of growth and innovation, a commitment remains to tackle the challenges posed by high-profile audit failures and the risks associated with traditional, unverified data utilization. The introduction of independent, real-time verification capabilities across the audit ecosystem addresses these concerns head-on.

In summary, Circit is not only raising substantial capital but is also leading the charge towards a digital, reliable audit framework that prioritizes verified data integrity. With strategic investments in place, the company's vision for revolutionizing audit practices looks very promising.