Delve Secures $32M to Transform Compliance
SAN FRANCISCO (Diya TV) — AI startup Delve has successfully raised $32 million in Series A funding, catapulting its valuation to $300 million just months after closing an initial $3 million seed round.
Operating out of San Francisco, Delve leverages artificial intelligence to automate regulatory compliance, significantly reducing the manual labor required by companies to adhere to essential frameworks like HIPAA, SOC 2, and GDPR.
The latest funding round was led by Insight Partners, alongside participation from Chief Information Security Officers (CISOs) at Fortune 500 companies and an array of tech investors. This round marks a strong endorsement of Delve’s ambitious mission to transform compliance and other business operations in the future.
Initially, Delve was not planning to raise capital so soon after graduating from Y Combinator. However, a surge in customer demand prompted the founders to reconsider their strategy. “We were growing quickly, and inbound interest kept coming,” said Selin Kocalar, co-founder and COO of Delve. The startup’s revenue has doubled over the past quarter, with its client base expanding from 100 in January to over 500 today, including budding AI companies such as Lovable, Bland, and Wispr Flow.
The new funding will facilitate Delve’s expansion of its AI platform and support further team growth. Founded by Karun Kaushik and Selin Kocalar—who met at MIT—the company initially developed an AI-powered medical scribe but pivoted to focus on compliance after realizing the extensive challenges many companies face.
“Every company we talked to was struggling with it,” Kaushik stated, highlighting the need for efficient compliance solutions. Delve’s strategy is to create AI tools that help startups navigate vital security and privacy standards more effectively.
In recent years, compliance has emerged as a critical operational aspect for modern companies, influencing product launches and enterprise deals. However, achieving compliance is often tedious, relying on manual processes such as screenshots, spreadsheets, and email threads. “Compliance frameworks are standardized. Businesses aren’t,” Kaushik noted, indicating the struggle traditional software faces in dealing with this mismatch.
Delve addresses these issues with AI agents that function like internal team members. These agents seamlessly integrate into company systems and handle tasks such as gathering necessary evidence and updating audit logs without needing to reconfigure existing operations. Kocalar remarked, “You don’t have to change how your company works; Delve adapts to your systems and automates the hardest parts.”
While beginning with compliance, Delve has grander ambitions, looking to automate additional back-office functions such as risk management, cybersecurity, and governance. Kocalar emphasized, “Compliance is just the beginning. We want to eliminate a billion hours of busywork.”
The vision aligns with Insight Partners, whose Managing Director Praveen Akkiraju stated, “Modernizing compliance can modernize entire organizations. Compliance touches every part of how a business runs.”
Despite the growing competition from general-purpose AI agents, Kocalar believes Delve’s concentrated expertise in compliance offers a distinctive advantage. “This space constantly evolves as regulations change. Our strength lies in our deep, domain-specific knowledge.”
The Delve team, composed of AI researchers from MIT, Stanford, and Berkeley, is dedicated to improving its agents as technology advances but remains focused on compliance, where they see a significant opportunity within a large market.
Delve has already shown profitability, saving its clients tens of thousands of hours of manual labor, while projecting its potential to unlock billions in pipeline by expediting compliance processes and allowing companies to operate more efficiently.
With the recent funding, Delve plans to deepen its AI capabilities and expand hiring across crucial roles, with a vision to continue rapid growth while fulfilling its mission of alleviating busywork for businesses globally. “We’re just getting started,” Kaushik concluded.