Artificial intelligence (AI) enterprise company AppZen closed a $2.9 million seed round today.
AppZen uses machine learning algorithms and natural language processing to automate and analyze expense reports for fraud. The company plans to extend into other back-office functions like accounting in the future, according to spokesperson Michelle O’Rourke.
An Association of Certified Fraud Examiners survey of 2,400 companies found that more than $6 billion is lost to expense fraud every year . AppZen claims it can reduce auditing costs 80 percent and greatly improve a business’s ability to catch fraud.
Other players in the enterprise and expense reporting software space include SAP, Unit4 , Sapho , and more than 50 applicants to the Botcamp accelerator.
AppZen, based in Sunnyvale, California, graduated from the 500 Startups accelerator in 2015. The round was led by Resolute Ventures and includes investment from Silicon Valley Bank, MasterCard, and Bloomberg Beta.