MOSTLY AI, an Austrian synthetic data startup, revealed today that it has raised a $25 million Series B financing. Molten Ventures, a British venture capital firm, led the operation, with Citi Ventures as a new investor. Munich-based 42CAP and Berlin-based Earlybird, which led MOSTLY AI’s $5 million Series A investment in 2020, have both returned as investors.
Synthetic data is fictitious information, yet it is not random: MOSTLY AI uses artificial intelligence to ensure that its clients’ datasets are accurate. The business claims that its data sets “look just like a company’s original customer data, with just as much information, but without the original personal data points.”
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MOSTLY AI CEO Tobias Hann told TechCrunch that the funds will be used to push the frontiers of what the company’s software can accomplish, expand the company’s team, and win additional clients in Europe and the United States, where it already has offices in New York City.
The General Data Protection Regulation (GDPR) was introduced across the EU one year after MOSTLY AI was formed in Vienna. Synthetic data has gained a lot of traction as a result of the requirement for privacy-preserving solutions and the rise of machine learning. According to Gartner, by 2024, 60 percent of the data utilized in the development of AI and analytics projects would be synthetically generated.
Fortune 100 banks and insurers, as well as telecoms, are among MOSTLY AI’s typical clients. Along with healthcare, these three highly regulated areas provide the majority of demand for synthetic tabular data.
MOSTLY AI, unlike some of its competitors, hasn’t focused on healthcare in the past, but that might change. “It’s something we’re definitely keeping an eye on, and we’re really starting some trial initiatives this year,” the CEO stated.
According to Hann, the democratization of AI means that synthetic data will be used much beyond Fortune 100 organizations in the future. As a result, his company intends to service smaller businesses and a broader range of industries in the future. Until today, however, it made sense for MOSTLY AI to concentrate on commercial clients.
