Eisen, a compliance operations infrastructure powered by AI, reported a $18.5M raise to update account offboarding, tax reporting, and escheatment processes across financial services companies.
The financial milestone encompasses, for the first time, a recently finalised $10 million Series A round, along with an undisclosed $8.5 million seed round. The Series A, closed by focused venture capital firm Mission OG, was supported again by early-stage investors Index Ventures and Cowboy Ventures. Other investors in the fundraising history are First Round Capital, Homebrew, Restive Ventures and Blank Ventures.
Backed by a former Coinbase product manager, the New York-based financial technology startup is working to centralise what is otherwise a very complicated legal transfer of dormant or “abandoned” customer funds through escheatment to U.S. state governments. Existing financial infrastructure has no special application for this process, requiring compliance departments to manually manage multiple sources of far-flung data, legacy vendors that don’t share data, and varying spreadsheet files.
The enormity of unclaimed property continues to be an enormous financial drag. For instance, US state governments collectively are sitting on over US$70bn in consumer funds from abandoned savings accounts, dormant brokerages, retirement funds, and life insurance policies. If firms do not take simple, compliant action to audit, identify and report these de facto limits of their trust, they face harsh non-compliance penalties under the strict regulatory regimes.
Tackling Regulatory Hurdles in Crypto and Fintech
Though traditional banking institutions have faced these escheatment rules for years, the compliance crisis worsened and bloomed even faster with respect to digital assets and fintech ecosystems. The states are now incrementally extending their state-by-state regime to include cryptocurrencies, stablecoins, and tokenised assets as subject to escheatment. California, New York, Delaware, and Florida have all made it mandatory in law for digital asset platforms to identify and dump inactive tokens under particular contexts.
Source: Unsplash
The onboarding of digital assets into state custody introduces unique friction points. When platforms are forced to liquidate a user’s dormant tokens, they typically convert the digital holdings into cash at current spot market prices. This involuntary transaction may also default the user into an unintended tax liability and also destroy the customer relationship for the financial institution.
Additionally, ongoing federal legislative updates, like the GENIUS Act, are further dragging stablecoins and innovative financial technology products into the traditional regulated financial infrastructure. These market developments impose intricate state compliance obligations on digital asset custodians, Web3 platforms, and neobanks. These requirements were penned far in advance of the blockchain revolution.
More News: RADAR Raises $170M, Hits $1B Valuation in AI Retail Push
Automating the Compliance Stack
Eisen provides a centralised system of record that integrates state-by-state compliance parameters directly into daily financial account operations. The software platform automates the end-to-end offboarding timeline, continuously evaluating account inactivity levels across checking accounts, savings profiles, certificates of deposit, loan overpayments, and escrow refund balances.
By shifting compliance from a reactive, manual task to a proactive, automated workflow, the platform helps institutions detect dormancy risk much earlier in the account lifecycle. The automated outreach engine contacts customers through systematic notification channels, attempting to safely reconnect individuals with their dormant funds before the assets must legally be surrendered to state custody. During operations, the platform successfully prevented over 31% of targeted at-risk assets from being turned over to state ownership.
When an asset cannot be recovered and must be legally transitioned to a state, Eisen automatically manages the downstream documentation, withholding taxes, local tax filings, and final disbursement execution. This prevents financial institutions from losing the underlying account revenue and customer trust that typically vanishes during an unmanaged state seizure.
The startup will use the fresh capital to scale its engineering and compliance teams. Additionally, the funding will drive the continuous expansion of Eisen’s platform capabilities, enabling the company to deepen its compliance automation coverage and forge broader enterprise partnerships across traditional consumer banks, digital brokerages, neobanks, and international cryptocurrency ecosystems.
