AI risk management startup QuantPi has raised €2.5 million in a pre-seed funding round led by Capnamic alongside First Momentum Ventures, New Forge, and Ash Fontana. Ahead of this round, Philipps & Byrne did a tech due diligence on QuantPi’s technology and product approach. The assessment aimed at getting an overview of the company itself and of the team, its processes, architecture, and best practices across product and engineering in order to identify potential risks and opportunities.
QuantPi aims to eliminate the uncertainty that surrounds delivering AI systems by bringing quality control to every step of the development process. Enterprises can ensure that legal, commercial, and reputational risks related to their AI solutions are identified, assessed, and mitigated.
eXplainable AI: Addressing Responsibility in Artificial Intelligence
Despite the wide range of industries that employ AI today, there is still a significant risk of bias and potential danger that can result from AI decisions. It is imperative to implement a responsible approach to artificial intelligence to avoid dangerous consequences, such as financial or physical harm.
XAI provides a solution to the issue of “black box” machine learning algorithms by allowing for transparency and accountability in AI decision-making. The concept of “explainability” involves testing AI models with various variables to gain insights into their inner workings. Many current AI applications use modeling techniques that are difficult for humans to comprehend, such as Deep Learning and Neural Networks. Therefore, there is a clear need for a solution that enables experts to understand the outcome of these models and explain them to others, rather than merely improving communication about how the system works.
QuantPi: Providing Risk Management for AI Decisions
PiCrystal, an XAI technology developed by QuantPi after years of research, utilizes well-calibrated algorithms to achieve high-level gains in efficiency. This way organizations are supposed to achieve transparency in their AI decisions and thereby identify, assess, and mitigate the various legal, commercial, ethical, and reputational risks associated with their AI solutions.
This is achieved by collecting and analyzing metrics in key audit dimensions, including data quality, model performance, fairness, explainability, and robustness. Subsequently, this information is translated into project summaries, technical documentation, and reports that are tailored to ensure audit readiness and risk management.
Tech Due Diligence: Assessing QuantPi’s AI Platform Approach
QuantPi addresses the very relevant topic around responsibility and explainability in AI, which is becoming even more important as AI is reaching mass adoption. Although investments in Deep Tech can provide significant opportunities and the possibility of shaping the tech industry, they also come with greater risks than established technologies. However, with regard to QuantPi’s business case, the need for managing risk in AI was very apparent from the start.
We worked very well with the team from Philipps & Byrne during the TechDD. Our eXplainable AI technology is inherently complex and they were able to truly understand our business case, our business strategy and our Deep Tech setup. The team identified potential pain points and provided us with recommendations in their report that are helping us grow our young organization.
Co-Founder & Chief Technical Officer
To assess the potential risks and opportunities of investing in QuantPi, venture capital firm Capnamic requested a product and technology due diligence from Philipps & Byrne. As we have conducted Tech DD on multiple AI and Deep Tech Startups, this was a natural fit. The scope of the assessment included evaluating the company’s tech team, research, product and technical roadmap, processes and applications, as well as their architecture, backend code, infrastructure, and related systems. Our report provided the VC investors with a solid understanding for an informed decision and included a set of recommendations for QuantPi to utilize in their future growth journey.
QuantPi originated on top German and Swiss university campuses with the intrinsic motivation of making black box AI understandable for non-machine learners. Their research efforts to solve this problem resulted in a world-leading technology in the field of eXplainable AI. QuantPi was subsequently founded as a spin-off from the renowned CISPA – Helmholtz Center for Information Security and Saarland University. The initial problem and XAI technology quickly led to a holistic approach to making AI safer and more comprehensible for different social, research, and business stakeholders.
Capnamic is a venture capital firm based in Cologne and Berlin with a focus on early-stage investments in outstanding teams in the German-speaking regions. They back aspiring entrepreneurs as they embark on their journeys. No matter if it’s pre-product, MVP stage or first revenues: Capnamic is the early-stage venture capital firm that provides not just financial backing but the network, experience and guidance to turn outstanding teams into category leaders.