MIT Dropouts Raise $32M at $300M Valuation Led by Insight
▼ Summary
– Delve, an AI compliance startup, raised a $32 million Series A at a $300 million valuation led by Insight Partners, following rapid growth and strong inbound interest.
– The company’s customer base grew from 100 to over 500 companies, including fast-growing AI startups, since its $3 million seed round in January.
– Founded by MIT classmates Karun Kaushik and Selin Kocalar, Delve pivoted from an AI medical scribe idea to focus on automating compliance workflows like HIPAA, SOC 2, and GDPR.
– Delve uses AI agents to automate manual compliance tasks, such as evidence collection and report writing, by integrating with customers’ tools and systems.
– The startup aims to expand beyond compliance into broader back-office operations like cybersecurity and governance, leveraging its domain-specific expertise to differentiate from general-purpose AI agents.
Two MIT dropouts have secured $32 million in Series A funding at a $300 million valuation for their AI compliance startup, Delve, led by Insight Partners. The rapid growth comes just months after their $3 million seed round, demonstrating strong investor confidence in their automated regulatory solutions.
Delve’s AI-powered platform streamlines compliance processes, eliminating hundreds of hours of manual work for businesses navigating complex regulations like HIPAA, SOC 2, and GDPR. The company’s customer base has surged from 100 to over 500 in less than a year, attracting fast-growing AI firms and Fortune 500 enterprises alike.
Founders Karun Kaushik and Selin Kocalar initially set out to build an AI medical scribe but pivoted after encountering the cumbersome world of healthcare compliance. Their shift proved prescient, YC-backed Delve now automates evidence collection, audit logging, and report generation, acting as an AI-driven compliance team for its clients.
Insight Partners, the lead investor, sees Delve’s potential to transform not just compliance but broader back-office operations. “Modernizing this function will modernize the entire organization,” said Praveen Akkiraju, Insight’s managing director. The startup plans to expand into cybersecurity and governance, aiming to automate a billion hours of administrative work.
Despite competition from general-purpose AI agents, Delve’s domain-specific expertise gives it an edge. “Compliance is constantly evolving, and companies interpret regulations differently,” Kocalar explained. “That’s where our deep knowledge makes the difference.”
The founders, who left MIT in 2023 to focus on Delve, have quickly turned regulatory headaches into a high-growth business, proving that sometimes, the best lessons happen outside the classroom.
(Source: TechCrunch)
