Vendict Raises $10M to Eliminate AI Hallucinations from GRC Operations

A New Era in Compliance: Vendict Brings AI Precision to Governance

In an enterprise landscape where regulatory expectations are escalating and compliance teams are overwhelmed with documentation, Vendict is emerging as a game-changer. The company just secured a \$10 million Series A funding round, adding to its previous investments and bringing total funding to \$20 million. With the GRC (Governance, Risk, and Compliance) software market poised for massive growth in the next five years, Vendict’s AI-native platform is turning heads—especially for its bold promise: zero tolerance for AI hallucinations.

Vendict isn’t just automating workflows; it’s redefining how compliance operates. Instead of using pre-set templates or manual-heavy tools, the platform adapts to each company’s specific infrastructure. This flexibility enables compliance teams to shift from reactive tasks to proactive strategy and risk oversight.

the Original

Vendict, a startup specializing in AI-powered governance, risk, and compliance (GRC) tools, has raised \$10 million in a Series A round led by Moneta VC and JAL Ventures. Existing investors—NFX, Cardumen Capital, Disruptive AI, and Cyber Club London—also participated. With this new funding, Vendict’s total capital raised now stands at \$20 million.

The GRC space is notoriously reliant on manual processes, from parsing complex regulatory frameworks to documenting audit responses. Vendict addresses this by offering an AI-native solution that reduces manual labor and boosts accuracy. The platform utilizes language models, knowledge graphs, and constant feedback loops to ensure contextual understanding and reliable, hallucination-free outputs.

Vendict’s co-founder and CEO, Udi Cohen, emphasized the importance of freeing compliance professionals from repetitive tasks like spreadsheet work so they can focus on strategic risk management and trust-building. Unlike many existing GRC tools that require static configuration, Vendict’s system is adaptive and can be tailored to each organization’s needs.

Founded in 2021 by Cohen and CTO Michael Keslassy, Vendict already serves over 100 clients, many of whom have transitioned from outdated systems to take advantage of the platform’s AI-first, context-aware architecture. The broader GRC software market is expected to expand significantly between 2025 and 2029, with AI playing a central role.

What Undercode Say:

Vendict’s funding milestone is not just another startup success story—it signals a foundational shift in how organizations handle compliance in the age of AI. Governance, risk, and compliance have traditionally been burdened with a heavy reliance on spreadsheets, templates, and human labor. These methods are not only inefficient but also leave too much room for error, especially when interpreting and applying complex regulatory requirements.

By eliminating the issue of AI “hallucinations”—the phenomenon where generative models produce inaccurate or fabricated data—Vendict tackles one of the most critical risks of AI integration in enterprise environments. This is not just a technical challenge; it’s a trust issue. In compliance, the credibility of your reporting can mean the difference between legal exposure and a clean audit.

Vendict’s use of language models combined with knowledge graphs and feedback loops isn’t just smart—it’s essential. These features allow the system to “understand” organizational context, interpret regulatory nuances, and maintain traceability in decision-making. This ensures that GRC teams can defend the rationale behind every report or response the AI generates.

Furthermore, the platform’s adaptive configuration is particularly important in today’s volatile regulatory environments. From GDPR in Europe to SEC rules in the U.S., compliance is not a one-size-fits-all domain. Vendict’s approach allows companies to remain agile and responsive, reducing the risk of falling out of compliance due to static tools.

And then there’s the timing. The GRC market is projected to grow substantially from 2025 to 2029. Investors know this. The fact that Vendict has locked in high-profile venture capital now positions it to dominate this upcoming wave. With more than 100 customers already onboard, the startup has proof of traction in a notoriously conservative market.

We should also consider the broader implications: If Vendict succeeds, we may see a domino effect across other sectors heavily reliant on trust and compliance, such as fintech, insurtech, and healthcare. The days of bloated compliance departments could be numbered if AI platforms like Vendict can actually live up to their promise of precision and adaptability.

But challenges remain. For one, enterprise adoption cycles are slow. Even with a superior product, convincing conservative risk officers to abandon legacy systems is not trivial. Moreover, competitors are circling—legacy players in the GRC space are not standing still, and some are aggressively incorporating AI to avoid being disrupted.

Still, Vendict’s message is clear and compelling: AI in compliance doesn’t need to be dangerous. It can be contextual, reliable, and—perhaps most importantly—auditable.

🔍 Fact Checker Results:

✅ Vendict did raise a \$10M Series A as of the latest verified announcements.
✅ It uses a combination of LLMs, knowledge graphs, and feedback loops to minimize hallucinations.
✅ The GRC software market is forecasted to expand between 2025–2029, with AI as a key driver.

📊 Prediction:

By mid-2026, Vendict is likely to double its client base, surpassing 200 enterprise users, as regulatory scrutiny increases globally. If it maintains its edge on hallucination-free compliance AI, it could become a prime acquisition target for legacy players like SAP, Oracle, or IBM eager to refresh their GRC offerings. Alternatively, Vendict could aim for a late 2027 IPO, leveraging its growing relevance as compliance becomes more AI-dependent.