The corporate’s AI brokers execute audit plans end-to-end, decreasing the price, friction, and guide work of SOX compliance
Midship, an AI-native platform automating Sarbanes-Oxley (SOX) testing and inside audit workflows, right this moment introduced $4.15 million in seed funding led by Costanoa Ventures, with participation from Seguin Ventures and extra angel buyers. The funding might be used to scale its crew and speed up adoption amongst public firms going through rising audit complexity, expertise shortages, and mounting compliance prices.
The common U.S. public firm spends roughly $2.3 million yearly on SOX audit providers, with an estimated 10x extra in hidden prices by inside groups throughout finance, IT, and operations. Regardless of a long time of tooling, SOX testing stays largely guide, tying up inside audit groups in repetitive proof assortment, testing, and documentation relatively than higher-value advisory work.
Midship’s agentic AI takes on the complete SOX testing lifecycle. The platform’s brokers comply with audit plans, cause over complicated enterprise documentation, carry out management testing, and generate audit-ready work papers, delivering an entire proof path that reduces guide effort whereas maintaining human auditors firmly within the loop.
Based by Kieran Taylor (CEO), Aahel Iyer (CPO), and Max Maio (CTO), Midship was born out of the crew’s firsthand expertise navigating SOX audits at scale. The founders supported audit and compliance groups at firms together with Instacart, Deloitte, Amazon, Lyft, Faire, and PayPal, earlier than in the end coming collectively as a product trio at Dashworks (acquired by HubSpot). Whereas getting ready Instacart for its IPO, the crew skilled the complete burden of first-year SOX compliance, sparking an inside AI hackathon that uncovered a bigger alternative: automating your complete SOX testing lifecycle.
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“SOX was meant to deal with core danger, not lavatory audit groups down with busy work,” stated Kieran Taylor, CEO and co-founder of Midship. “Groups spend months proving controls work as a substitute of bettering how the enterprise runs. Midship flips that equation by letting AI deal with the execution, proof, and documentation, so people can deal with judgment and actual danger.”
Midship differentiates itself from legacy SOX platforms by going past workflow administration. Whereas programs of document like AuditBoard and Workiva monitor the administration of a SOX program, Midship automates the precise testing itself. Not like deterministic automation instruments, Midship’s totally agentic method can deal with the real-world variability and unstructured knowledge inherent in enterprise audit work.
“Whereas most ‘AI for audit’ instruments deal with changing particular person duties,” stated Amy Cheetham, Companion at Costanoa. “Midship goes additional by enabling brokers to execute finish to finish testing throughout whole audit applications. This lets groups maintain controls of their native audit language and permit the brokers to find out the steps wanted to finish the work.”
Midship is already being utilized by main public firms, together with a high social media platform and main fintechs, serving to inside audit groups scale back guide effort and scale their affect with out rising headcount.
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