Ethos, a modern model risk management platform, announced that it has secured $6 million in its Seed funding round anchored by Canapi Ventures and backed by Capital One Ventures and Better Tomorrow Ventures.
Ethos aims to streamline how financial institutions and fintech firms manage model risk, aspiring to establish a gold-standard platform for artificial intelligence, machine learning, and other data-driven decision tools.
The company’s approach addresses growing challenges in the financial services sector, where banks rely heavily on advanced analytics for lending decisions, fraud detection, and anti-money laundering measures.
With the rise of generative AI and increasingly sophisticated modeling techniques, many organizations are seeking next-generation solutions to optimize risk processes.
Recent industry surveys have highlighted the strain faced by risk managers who must contend with evolving regulatory demands, rising costs, and technology skill gaps.
Ethos was co-founded by Chief Executive Jett Oristaglio and Chief Technology Officer Mike Fotinakis. Oristaglio previously served as Product and Data Science Lead of Trusted AI at DataRobot, where he observed a need for more agile and transparent model oversight.
Fotinakis brings over two decades of experience building enterprise platforms, ensuring the technical foundation is geared to meet rigorous operational and regulatory requirements.
The platform is designed to enable faster deployment of data-driven models, while maintaining compliance with industry standards.
Its developers believe that by helping financial institutions adopt new technologies safely, they can turn robust risk management into a competitive edge.
Ethos is already collaborating with one of the largest U.S. financial institutions, demonstrating its capacity to operate at scale. Better Tomorrow Ventures, an early supporter, sees the company’s solution as a critical resource for banks and fintechs looking to implement AI responsibly.
Leading the seed round, Canapi Ventures cites the pressing need for banks of all sizes to adopt more effective model risk management practices.
Founded in 2023 and headquartered in New York, Ethos is positioning itself as a pivotal partner for institutions navigating the complex intersection of AI, risk, and regulatory oversight.