TRACT

?? Top AI Ethics Frameworks Every VC Should Know ?? As AI innovation accelerates, venture capitalists are in a unique position to shape a more ethical tech future. But where do you start? This article highlights the top AI ethics frameworks that can guide your investment decisions: 1?? The IEEE Ethically Aligned Design — Prioritizing human rights and transparency. 2?? EU AI Act — A regulatory approach to classifying and mitigating AI risk. 3?? Montreal Declaration for Responsible AI — Focused on well-being, privacy, and inclusion. 4?? OECD AI Principles — Balancing innovation with fairness and accountability. 5?? Partnership on AI Guidelines — Practical recommendations for responsible development. By aligning with established frameworks, VCs can identify red flags, foster trust, and support companies building AI that benefits everyone. It’s not just about avoiding risk — it’s about driving sustainable, ethical innovation. ?? Read the full breakdown here: https://lnkd.in/dn4cZwxH Which AI ethics framework do you find most impactful? ?? #AI #VentureCapital #EthicalInvesting #TechForGood #AIRegulation

?? AI Ethics in Venture Capital: Key Challenges to Tackle ?? As AI transforms industries, venture capitalists face a growing responsibility to invest ethically. Let's dive into the top ethical considerations for AI investments — and why they matter: 1?? Bias & Fairness — Are the algorithms reinforcing harmful biases? 2?? Privacy & Data Security — How is user data collected, stored, and protected? 3?? Transparency & Accountability — Can the AI’s decisions be explained and audited? 4?? Social Impact — What are the long-term effects on jobs, communities, and society? 5?? Regulatory Compliance — Is the company prepared for evolving AI regulations? For VCs, balancing innovation with responsibility isn’t just good ethics — it’s good business. Investing in companies that prioritize ethical AI helps mitigate risk, build public trust, and drive sustainable growth. ?? Read the full article here: https://lnkd.in/eTnivZuc How do you approach AI ethics when evaluating potential investments? ?? #AI #EthicalAI #VentureCapital #TechInvesting #AIFuture

7 Essential Due Diligence Steps for Private Equity Investments Navigating private equity investments can be complex, but thorough due diligence makes all the difference. Here are seven critical steps to mitigate risk and maximize returns: 1?? Market Analysis — Understand industry trends, competitors, and growth potential. 2?? Financial Review — Scrutinize historical financials, projections, and cash flow. 3?? Legal & Regulatory Checks — Uncover potential legal liabilities and compliance issues. 4?? Operational Assessment — Evaluate the company's processes, tech, and scalability. 5?? Customer & Supplier Insights — Analyze contracts, customer concentration, and supplier dependencies. 6?? Management Evaluation — Assess leadership capabilities and track records. 7?? Exit Strategy Planning — Define viable paths to liquidity and ROI. Whether you're a seasoned investor or exploring your first deal, these steps help build confidence in your investment decisions. ?? ?? Read the full breakdown here: https://lnkd.in/eD5eBub7 What’s your top priority when evaluating a potential acquisition? #PrivateEquity #DueDiligence #InvestmentStrategy #BusinessGrowth #MergersAndAcquisitions

?? AI Compliance: EU vs. US – Key Differences AI regulation takes very different paths in the EU and the US. The EU AI Act enforces strict, risk-based regulations with penalties for violations, while the US relies on sector-specific guidelines with less centralized enforcement. ?? EU AI Act: Risk-Based Compliance ?? Unacceptable AI → Banned (e.g., real-time biometric surveillance) ?? High-risk AI → Strict regulation (e.g., hiring, credit scoring) ?? Limited risk AI → Transparency requirements (e.g., chatbots) ? Minimal risk AI → No specific rules (e.g., spam filters) The EU enforces compliance through audits, penalties, and mandatory reporting. Companies must implement risk management, human oversight, and continuous monitoring to avoid market bans or fines. US AI Compliance: A Sector-Specific Patchwork Instead of one unified framework, the US follows industry-specific guidelines, such as: ? Healthcare – FDA oversight for AI-driven medical tools ? Finance – SEC and FTC regulations for algorithmic decision-making ? Privacy – State laws like California’s CPRA While the flexibility allows innovation, it also leads to inconsistent enforcement across sectors. ?? What This Means for Businesses ? EU Companies → Must comply with rigid, standardized rules and risk heavy fines. ? US Companies → Face varied requirements based on industry and state laws. ? Global Companies → Need dual compliance strategies to navigate both regulatory landscapes. ?? The Future of AI Regulation ?? US Federal AI Law? – A central AI authority could emerge. ?? Global AI Standards? – The EU model might influence worldwide regulation. ?? AI Ethics & Human Rights – Growing focus on bias, safety, and accountability. ?? AI compliance is evolving fast – how is your company adapting to these changes? #AICompliance #EUAIAct #ArtificialIntelligence #AIRegulation #TechPolicy #RiskManagement #AIinBusiness #USvsEU

?? How Social Media Data Enhances Due Diligence In today’s digital landscape, social media data is a game-changer for due diligence. It provides real-time insights into risks, trends, and public sentiment that traditional methods often miss. ?? Why Social Media Matters in Due Diligence: ? Real-Time Monitoring – Spot risks like customer complaints or reputational issues instantly. ? Transparency – Uncover hidden issues through public conversations. ? ESG & Supply Chain Insights – Track human rights concerns, environmental violations, and regulatory risks. ? Behavioral & Reputational Risks – Analyze historical social media patterns to flag red flags. ?? How to Effectively Use Social Media Data: 1?? Choose the Right Platforms – LinkedIn for professional insights, Twitter for sentiment analysis, Glassdoor for employee perspectives. 2?? Leverage AI Tools – AI can detect behavioral patterns, compliance risks, and sentiment shifts at scale. 3?? Integrate Data with Traditional Due Diligence – Combining social media insights with financial and legal checks provides a more complete risk profile. 4?? Monitor in Real Time – AI-powered tools can alert teams to emerging issues before they escalate. ?? The Future of Due Diligence: ?? AI-driven sentiment analysis is refining risk detection. ?? Multi-platform monitoring ensures comprehensive insights. ?? Privacy-focused tools help companies stay compliant. Social media due diligence isn’t just an add-on—it’s an essential part of modern risk assessment. Platforms like TRACT are transforming how businesses analyze social data, helping them stay ahead of risks and make smarter decisions. ?? How is your company leveraging social media insights for risk management? Share in the comments! #DueDiligence #AI #SocialMediaIntelligence #RiskManagement #ESG #Compliance #BackgroundChecks #PrivateEquity #MergersAndAcquisitions #B2BSaaS

?? How to Conduct Due Diligence for a Search Fund: A Guide for Entrepreneurs Due diligence is crucial for search fund entrepreneurs as it ensures that potential acquisitions align with business goals and avoid hidden risks. By combining traditional methods with AI-driven tools, entrepreneurs can gain deeper insights and uncover opportunities. ?? Key Steps in Due Diligence: Financial Review: Analyze cash flow, revenues, expenses, and balance sheets for any hidden risks. Legal Compliance: Ensure all corporate documents, contracts, and intellectual property are in order. Operational Assessment: Evaluate workflows, market position, and team structure to identify inefficiencies. Use AI Tools: AI speeds up analysis by 35%, offering insights across financial, legal, and operational areas. ?? Why AI Matters: AI tools not only accelerate financial reviews but also simplify background checks. They analyze vast amounts of data to identify trends, flags, and anomalies that might go unnoticed, saving time and reducing errors. ?? Combine AI with Expert Advice: Work with legal, financial, and industry specialists to uncover nuanced insights. Leverage real-time data tools like TRACT to verify information from multiple sources. ?? Actionable Tips for Search Fund Entrepreneurs: Use checklists to ensure thoroughness across all due diligence areas. Assemble a skilled advisory team to interpret AI findings. Leverage AI to streamline the process while relying on human expertise for strategic decision-making. ?? Key Takeaway: AI-powered due diligence tools can provide critical insights, identify risks, and uncover growth opportunities. With a structured approach and the right tools, entrepreneurs can reduce acquisition risks and set the stage for success. #DueDiligence #AI #SearchFund #BackgroundChecks #PrivateEquity #MergersAndAcquisitions #SaaS #TechInnovation #BusinessGrowth

We love to see founders and investors come together on new rounds of funding to continue building great businesses. Congratulations to these founders and investors on securing their next round of funding: ?? $10 million+ rounds Jump, a two-year-old Salt Lake CIty startup that provides an AI-powered assistant to help financial advisors manage admin tasks Raise: $20 million Series A Investors: Battery Ventures, Citi Ventures, Sorensen Capital, and Pelion Venture Partners Riot, a five-year-old New York startup that offers?interactive training sessions to teach staff how to handle potential security threats Raise: $30 million Series B Investors: Left Lane Capital, Y Combinator, Base10 Partners, and Funders VC Tana, a four-year-old Palo Alto startup whose AI-powered workspace aims to help individuals and teams organize tasks, manage projects, and capture ideas efficiently, Raise: $14 million Series A Investors: Tola Capital, Lightspeed, Northzone, Alliance VC, firstminute capital ?? <$10 million rounds Perspective AI, a two-year-old Palo Alto startup that engages customers in natural, AI-driven dialogues to uncover motivations, preferences, and future intentions Raise: $4 million seed Investors: Village Global, Array Ventures, Honeystone Ventures, Recursive Ventures, and Darkmode Ventures Congratulations to all of these founding teams and investors.

TRACT provides background check solutions for investors across the private market: - Venture Capital - Private Equity - M&A - Angel Investors And independent sponsors. Independent sponsors cover a unique place in the market and TRACT provides a quick, affordable, and discrete solution for these investors.

Want to make better startup investments? Start with due diligence. Here's what you need to know:

Congratulations to these founding teams and investors for closing their recent round. It's great to see committed investors and focused founders come together to grow a great business. ?? $50 million+ funding Eleos Health, a five-year-old Boston and Tel Aviv startup that uses AI to assist mental health professionals by automatically creating session notes Raise: $60 million (Series C) Investors: Greenfield Partners (lead), Michael & Susan Dell Foundation. Union Tech Ventures, and Centerstone Capital Highnote, a five-year-old San Francisco startup whose platform enables businesses to create and manage virtual and physical payment cards Raise: $90 million (Series B) Investors: Adams Street Partners, Oak HC/FT, Costanoa Ventures, Westcap Mgt. Ltd., and Pinegrove Venture Partners ?? $10 million+ funding Bedrock Energy, a four-year-old Austin startup that specializes in geothermal heating and cooling systems for buildings Raise: $12 million (Series A) Investors: Titanium Ventures, Energy Impact Partners, and Sustainable Future Ventures Music AI, a six-year-old Salt Lake City?startup?that?leverages AI to create original, royalty-free music for use by businesses and creative professionals? Raise: $40 million Investors: Connect Ventures and monashees Percipio Health, a four-year-old startup based in Plano, TX, that uses AI to monitor and manage patients' health through smartphones Raise: $20 million (Series A) Investors: Wave Ventures, UPMC Enterprises, Labcorp, First Trust Capital Partners Baton, a four-year-old New York startup whose platform assists small business owners in buying and selling businesses Raise: $10 million Investors: Obvious Ventures (lead), Burst Capital, FJ Labs, Fluent Ventures, and 75 & Sunny ?? <$10 million funding Craftwork, a three-year-old startup based in Charlotte, NC, that promises quick estimates and transparent pricing for painting jobs Raise: $7 million (Series A) Investors: Slow Ventures, Lachy Groom, Four Cities Capital, FORERUNNER VENTURES MANAGEMENT, LLC, Pioneer Fund, and Y Combinator Kaya AI, a three-year-old startup based in Columbus, OH, whose platform is designed to streamline procurement and financial management for construction projects Raise: $5.3 million (pre-seed) Investors: 53 Stations, Suffolk Technologies and Soma Capital Congratulations to all the teams involved in these deals. Making a VC investment is serious work and requires a lot of diligence on both sides.