Sigma Ratings Closes Seed Financing

Sigma Ratings Inc., the world's first non-credit risk ratings agency, announced today that it has closed a $2.4 million Series Seed funding round to support their goal of becoming the "ratings company of the future". The round was led by New York-based FinTech Collective and also included investment from TechStars, Barclays and angel investors in New York, Silicon Valley and from high-growth emerging markets.

Unlike traditional rating companies, Sigma Ratings is focused on emerging markets and provides novel, dynamic, entity-level conduct risk analytics that are not available anywhere else. By collecting and quantifying specific operational risk data around compliance, governance and other non-credit risk factors, Sigma Ratings helps its growing client base massively improve their ability to assess and monitor important counterparty risk elements. 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.

"Risk is evolving and credit risk only gives you part of the picture," said Sigma CEO Stuart Jones, Jr. who appeared on CNBC's Capital Connection this week. "Risk associated with counterparty illicit finance and conduct risk is equally – if not more – important for companies operating in complex markets. For most responsible boards we talk to, it's a top three issue."

Sigma Ratings was founded by Stuart Jones, Jr., a former senior U.S. Treasury official with tours in Afghanistan and the Middle East, and Gabrielle Haddad, an accomplished international development lawyer. While at MIT Sloan School of Management, the founders saw an opportunity to develop a market-led, technology-enabled solution to incentivize good corporate behavior that would in turn help build trust and increase cross-border financial activity.

"What is unique about the Sigma Ratings team is that they saw a growing problem from inside the corridors of government and international development finance, and found an innovative way to marry their unique knowledge with cutting-edge technology," said Gareth Jones, Managing Partner at FinTech Collective. "We are excited to partner with Sigma Ratings as it changes how financial institutions around the world consume and apply risk information to conduct business. This is a game changer in today's environment where illicit finance is directly related to issues of economic development and national security."

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 strong ties to U.S. investments. Regions covered in these scores include the Middle East, Latin America, and Eastern Europe.