London- and New York-based startup Synthesized has secured $20 million in fresh funding to expand its AI-native testing platform as demand for advanced QA solutions intensifies across banking and financial services.
The Series A round was led by Redalpine Venture Partners, with participation from IQ Capital, Mercia Ventures, UBS, and Seedcamp.
Deutsche Bank, which previously invested in the company and is also a customer, increased its stake in the new round, the company confirmed.
Founded in 2020 by Nicolai Baldin, Synthesized has built its reputation on automating the most complex and compliance-sensitive parts of the QA process.
Its agentic AI-driven platform creates lifelike, regulation-safe test data and full test environments in minutes rather than weeks. For global banks juggling thousands of applications, this approach addresses one of the biggest bottlenecks in software delivery: waiting for realistic, privacy-preserving test data.
“Test data infrastructure is the foundation for quality software. By embedding agentic AI into every layer of testing, we’re enabling organisations to modernize QA processes, accelerate digital transformation, and confidently adopt AI-native testing,” Baldin explained.
He added that “with this funding, we’re scaling our team and accelerating our mission to make AI-driven test data and infrastructure the foundation for modern enterprise QA and software delivery.”
Synthesized is operating in a crowded market. Competitors include startups such as TestFort, QASolve, Ranger, Quash, and Zencoder, alongside established vendors like IBM, Micro Focus, now part of OpenText, as well as Perforce Software.
Still, its AI-native design and emphasis on regulatory compliance have resonated strongly with financial institutions.
Baldin said the new $20 million will be used to double the size of Synthesized’s 35-person team and fuel expansion in North America and Europe. The company currently operates from London and New York, with additional virtual operations in Japan.
‘Vibe coding’ puts pressure on banks
The rise of AI-assisted coding tools and ‘vibe coding’, where applications are spun up in seconds from text prompts, is intensifying risks for financial institutions.
As AI-generated code proliferates, QA teams in regulated sectors face increasing pressure to ensure stability, compliance, and security.
Baldin underlined this risk: “We are making sure we really identify those things which are going to break your app, at the data level, on the environment level, and help you expose those breakage points. This is absolutely critical because those traditional [testing] coordinators, they don’t do that.”
Market forecasts suggest this demand will keep rising. According to data on the website Market.us, spending on automated software evaluation tools is expected to climb from $1.9 billion in 2023 to $10.6 billion by 2033.
One of the investors in the firm, Daniel Graf, general partner at Redalpine, said that “Synthesized is tackling one of the most urgent and overlooked challenges in the age of AI: how to test, validate, and trust what we build.”
He went on to claim that “Their platform doesn’t just generate high-quality test data, it lays the foundation for a new class of autonomous QA agents that will transform how modern software is verified and shipped.”
“Synthesized is tackling one of the most urgent and overlooked challenges in the age of AI,” said Graf. “We believe Synthesized can become the infrastructure layer for intelligent, automated quality assurance across regulated and mission-critical systems.”
For banks, the measurable gains are already clear. Deutsche Bank has used Synthesized to cut its test data provisioning time by 50%, accelerating product iterations and improving customer experience. Other customers have reported QA cost reductions of up to 40% and more stable releases.
This reflects findings across the industry. A 2023 CapGemini Sogeti study revealed that 80% of software delays are caused by bottlenecks in setting up and running assurance tests, while a 2022 Forrester Research report found that 40% of QA budgets are lost to manual test data management.
Baldin said that Synthesized deliberately focuses on these friction points: “We are making sure we really identify those things which are going to break your app.” The company’s approach also ensures that software runs securely on a customer’s own infrastructure. “You don’t need to transfer code to us,” Baldin claimed.
Close ties to UBS
Synthesized’s ties to global banks date back to March 2024, when UBS Next, the venture and innovation investment arm of the Swiss bank, made a strategic investment.
At the time, Baldin emphasised: “The UBS Next investment will enable Synthesized to grow and evolve our mission of providing high-quality, privacy-preserving training and test data for application development, AI/ML, and analytics.”
He argued that “AI-based and more traditional software applications are only as good as the data used in their development,” describing Synthesized’s AI-driven, code-centric approach as “not just timely but essential, as it aligns with the growing need for efficient and secure data management in a rapidly evolving digital landscape.”
“It also allows for the creation of high-quality, privacy-preserving data, ensuring better software releases, quicker development times, and reduced data privacy risks,” Baldin added.
UBS’ Dr. Christopher Purves, co-head of Group Emerging Technology and Global Head of IB Digital Platforms at the bank, explained the rationale.
“The market opportunity for Synthesized is vast and growing. As companies increasingly rely on data for application development and AI/machine learning initiatives, the need for efficient and compliant production-like test data becomes paramount.”
Purves concluded by claiming that “Synthesized stands out by enabling software engineers to provision high-quality data on demand. It is intuitive as writing code and is a pioneering approach in the industry.”
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