# Sphinx Labs

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/sphinx-labs

- Industry: Software
- Headquarters: San Francisco, US
- Website: www.sphinxhq.com
- Total disclosed funding: $7.1M
- Latest round: Seed (Feb 17, 2026)
- Investors on record: 5

## About

Sphinx Labs, Inc. is a US-based technology firm specializing in AI-driven compliance solutions, focusing on automating Know Your Business (KYB) and Anti-Money Laundering (AML) operations to enhance efficiency for financial institutions.Sphinx Labs, Inc. was founded in 2024 in San Francisco, US. The company focuses on developing AI solutions for compliance operations. In February 2026, Sphinx raised USD 7.1 mn in a Seed funding round led by Cherry Ventures, with participation from Y Combinator, Rebel Fund, Deel, Inc., and Singularity Capital. The total amount raised to date is USD 7.1 mn, reflecting the company's continuous efforts to expand its offerings.Sphinx offers a comprehensive suite of AI-driven solutions specifically designed for compliance operations, focusing on Know Your Business (KYB) and Anti-Money Laundering (AML) automation. The core product utilizes artificial intelligence agents to automate compliance tasks such as due diligence, alert dispositions, and document verification, thereby enhancing operational efficiency for compliance teams. By integrating with existing systems, these agents mimic human actions, facilitating tasks like real-time watchlist updates and transaction monitoring, without the need for extensive onboarding or engineering support. Sphinx aims to serve a diverse client base that includes banks, fintech companies, credit unions, and cryptocurrency platforms. Their solutions are utilized primarily in North America, Europe, and parts of Asia, addressing the need for rapid resolution of regulatory compliance challenges while reducing false positives in alert systems.Sphinx generates revenue through a subscription-based model, which allows clients to access its suite of AI compliance tools tailored to their operational needs. Clients typically engage in contracts that grant them access to the AI agents, designed to streamline compliance processes and enhance overall productivity. The structure of these transactions often involves tiered pricing plans based on the volume of alerts processed and specific features utilized, ensuring scalability for businesses of varying sizes. Flagship offerings include their advanced AI compliance analysts that handle KYB and AML cases, enabling firms to resolve compliance issues effectively and swiftly. The revenue model is strategically positioned to align with the growing demand for automated compliance solutions across various industries, fostering long-term partnerships with clients who rely on Sphinx for regulatory compliance needs.In February 2026, Sphinx Labs, Inc. raised USD 7.1 mn in seed funding led by Cherry Ventures to expand its deployment of browser-native compliance agents and scale operations to handle growing AML, KYC, and KYB workloads without adding headcount. The funding will support initiatives to enhance their AI-driven compliance tools and facilitate entry into new geographic markets. Sphinx plans to target specific markets in Europe and Asia for expansion, aiming to reach these regions by the end of 2027.

## Funding rounds

- Seed, Feb 17, 2026, $7.1M — Y Combinator, Cherry Ventures, Rebel Fund, Deel, Inc., Singularity Capital

## Investors

- Y Combinator (https://capitalatlas.ai/funds/y-combinator) — Seed
- Cherry Ventures (https://capitalatlas.ai/funds/cherry-ventures) — Seed
- Rebel Fund (https://capitalatlas.ai/funds/rebel-fund) — Seed
- Deel, Inc. — Seed
- Singularity Capital — Seed