Sigma Ratings Inc., a NYC-based non-credit risk ratings agency, closed a $2.4m seed funding round.
The round was led by FinTech Collective with participation from TechStars, Barclays and angel investors in New York, Silicon Valley and from high-growth emerging markets.
The company intends to use the funds to expand its business reach.
Founded by Stuart Jones, Jr., a former senior U.S. Treasury official with tours in Afghanistan and the Middle East, and Gabrielle Haddad, an international development lawyer, Sigma Ratings deploys a proprietary algorithm, deep domain expertise and innovative technology to rate a company’s vulnerability to financial crime and governance risk.
Unlike traditional rating companies, the company is focused on emerging markets and provides novel, dynamic, entity-level conduct risk analytics by collecting and quantifying specific operational risk data around compliance, governance and other non-credit risk factors. Its ratings also provide a mechanism for emerging market financial institutions to highlight efforts to manage risk, allowing them to differentiate and create new business relationships.
Sigma Ratings will publish its first found of ratings in July, which will include scores of 500 financial entities around the world. These banks include those in emerging markets that have ties to U.S. investments. Regions covered in these scores include the Middle East, Latin America, and Eastern Europe.