Exclusive: Founded By 2 Brothers In Their 20s, YC-Backed Denki Raises $4.1M To Automate Financial Audits

2026-03-05 · Source: Artificial intelligence - Crunchbase News · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Software Development & Engineering, Data Science & Analytics · Depth: Fundamental Awareness, quick

Summary

Denki, a San Francisco-based startup founded in 2025 by brothers Felipe Jin Li and David Jin Li, has secured $4.1 million in funding to develop AI-powered software for financial auditors at public companies. The company aims to modernize financial audits by replacing manual, evidence-heavy processes with software automation, making audits function more like code. Denki's platform helps auditors review evidence faster, document work more effectively, and rigorously test process controls, leading to higher risk coverage and reduced costs for public companies. The funding round was co-led by Base10 Partners and Shine Capital, with participation from Y Combinator, 20VC, and others. Denki also participated in Y Combinator's Fall 2025 cohort. This investment aligns with a broader trend of increased funding for fintech startups leveraging AI, with global VC-backed fintech funding reaching $52.9 billion in 2025, a 27% increase from $41.6 billion in 2024.

Key takeaway

For executives overseeing financial compliance and audit functions, Denki's funding highlights a growing trend towards AI-driven automation in auditing. You should evaluate how AI tools can streamline your audit processes, reduce costs, and enhance regulatory compliance, especially given increasing scrutiny from bodies like the Public Company Accounting Oversight Board. Consider piloting AI solutions to move beyond traditional, manual methods and address labor constraints.

Key insights

AI automation can significantly enhance financial audit efficiency and regulatory compliance for public companies.

Principles

• Automate evidence review and documentation.
• Move beyond Excel for audit workflows.
• Integrate AI fraud detection.

Method

Denki offers a tiered SaaS annual contract based on automated controls, team size, and integration factors. It focuses on replacing manual audit processes with software automation and integrating research on AI fraud detection.

In practice

• Implement AI for faster evidence review.
• Adopt tools for rigorous control testing.
• Explore AI for detecting forged documents.

Topics

• AI-powered Software
• Financial Audit Automation
• Fintech Funding
• Explainable AI
• Regulatory Compliance

Best for: Executive, Investor, Entrepreneur, Business Analyst

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Editorial summary, takeaway, and curation by AIssential. Original article published by Artificial intelligence - Crunchbase News.