Israeli regtech startup Tangos AI has raised $20 million in seed funding to accelerate the development of its AI-powered platform for financial crime investigations, sanctions screening, and regulatory compliance.
The funding round was led by Red Capital Partners, with participation from Leaders Fund, Clarim, Venture Israel, SignalFire, Clutch Capital, Selah Ventures, and Bright Data.
Using AI to automate financial crime investigations
Founded in 2025, Tangos AI develops autonomous AI technology designed to help financial institutions and regulated businesses investigate suspicious activity faster while reducing the manual workload placed on compliance teams.
The platform assists organizations in identifying potential financial crime risks by analyzing suspicious transactions, sanctions exposure, fraud indicators, beneficial ownership structures, and complex entity relationships.
Rather than relying on traditional manual investigations, Tangos AI validates information across multiple data sources before producing regulator-ready reports complete with audit trails and supporting evidence.
The company says this approach enables compliance teams to significantly increase investigative capacity without proportionally expanding headcount.
Meeting growing compliance demands
Financial institutions continue to face increasing pressure from regulators to strengthen anti-money laundering (AML), sanctions compliance, and fraud detection capabilities.
At the same time, growing transaction volumes and increasingly sophisticated financial crime schemes are making traditional investigation processes more resource-intensive.
Tangos AI aims to address these challenges by applying artificial intelligence to automate repetitive investigative work while improving the speed and consistency of compliance reviews.
Founded by experienced fintech and compliance leaders
Tangos AI was founded by Eyal Azoulay, who previously established data and analytics fintech Rumble, acquired by BNY in 2018.
The company’s leadership team also includes former officials from the U.S. Treasury’s Office of Foreign Assets Control (OFAC), senior members of Israel’s national security community, and AI infrastructure specialists with experience developing large-scale autonomous systems.
The combination of regulatory, financial crime, and artificial intelligence expertise reflects the company’s focus on building enterprise-grade compliance technology for highly regulated industries.
About Tangos AI
Tangos AI is an Israel-based regtech startup developing AI-powered solutions for financial crime prevention, AML investigations, sanctions screening, fraud detection, and regulatory compliance. Its platform automates complex compliance investigations by combining artificial intelligence with multi-source data analysis, helping financial institutions identify risks, investigate suspicious activity, and generate regulator-ready reports more efficiently.
