Currently, companies are striving to ensure their large language models (LLMs) meet compliance standards that align with internal, legal, and regulatory requirements. This necessity is even more pronounced for businesses within regulated sectors. Patronus AI appears to be capitalizing on this market demand.
On Wednesday, Patronus AI, which aids clients in ensuring their models meet various compliance criteria, announced a $17 million Series A funding round, following their $3 million seed round just 8 months prior.
“Investors are enthusiastic because we are the definitive leader in this rapidly expanding market,” CEO and co-founder Anand Kannappan shared. Patronus AI’s early entry has positioned them advantageously as companies recognize the need for LLM governance tools to maintain compliance.
The company is optimistic about the burgeoning market’s potential. “Since our launch, we’ve collaborated with a diverse range of portfolio companies, AI firms, and mid-stage enterprises. Through our platform, our clients have processed hundreds of thousands of requests,” Kannappan noted.
Their primary product is Patronus Evaluators. “These are API calls that you can deploy with a single line of code to reliably and scalably evaluate LLM performance across multiple parameters,” Kannappan explained.
This includes assessing factors like the propensity for hallucinations, copyright risks, safety concerns, as well as enterprise-specific needs such as identifying sensitive business information and maintaining brand voice and style—key concerns from both regulatory and reputational standpoints.
Previously, we highlighted:
“The company is ideally positioned, offering a security and analysis framework via a managed service to test large language models and identify potential issues such as hallucinations, where the model fabricates answers due to insufficient data.”
Since their seed funding last year, the company has grown from six to twelve employees, with plans to double their workforce again this year.
The $17 million funding round was led by Notable Capital, with contributions from Lightspeed Venture Partners, Factorial Capital, and industry angels.
