A new wave of capital is flowing into the software-testing and quality-assurance sector as AI-generated code reshapes how banks and financial-services firms build and validate their digital systems.
Once treated as a back-office function, QA is fast becoming the cornerstone of AI-native software development, and venture investors are taking notice.
In the past months alone, multiple funding rounds across the US, Europe and Israel have highlighted the accelerating momentum behind autonomous and AI-driven testing tools.
That shift is now underscored by a fresh $15 million Series A raise for San Francisco-based Momentic, one of the fastest-growing AI-driven testing companies in the market.
Momentic, an AI-powered platform built to automate software verification and quality assurance, confirmed its Series A round led by Standard Capital with participation from Dropbox Ventures and several existing backers, including Y Combinator, FCVC, Transpose Platform and Karman Ventures.
The company described how the investment followed a $3.7 million seed round in 2025.
In announcing the raise, the company said it aims to replace the complexity of manual scripting frameworks such as Playwright and Selenium by allowing teams to generate tests by simply describing workflows in plain language.
The platform has already run hundreds of millions of automated test steps for more than 2,600 users, including a series of banks.
Momentic said the money will be used to accelerate engineering hiring and expand test-management capabilities as businesses increasingly rely on automation to safeguard product reliability at speed.
Co-founder Wei-Wei Wu explained the core proposition plainly: “We help our customers make sure their product works.” He added that “they can describe their critical user flows in plain English and our AI will automate it.”
Wu said the pain point that drove the company’s creation was universal across the software industry. “Testing has been the biggest pain point for every team I’ve ever worked with,” he told the website TechCrunch recently.
Wei-Wei Wu also highlighted the shift in QA workflows as AI removes traditional bottlenecks, estimating that Momentic automated “more than 200 million test steps” in the past month alone.
For regulated industries such as financial services, he said the timing of the investment is particularly significant, noting there is “a huge appetite” for automated testing solutions among banks and financial firms after “having difficulty creating and maintaining test automation at scale.”
“Reliable evaluation pipelines are critical for scaling trustworthy AI systems.”
– Andrew Ng
Last year, Wu described the broader strategy behind the product, emphasising that “testing is a giant umbrella that the company intends to cover more comprehensively and that means building up the team and product offering to match.”
He stressed that Momentic’s AI allows software developers to indicate what they want to test “in plain English,” after which “the testing AI will then execute all the test instructions automatically directly in a web browser.”
The design, he said, ensures that “non-technical users can easily activate and use the system” while also offering “a low-code editor so technical users can fine-tune tests to their liking.”
Wu argued that this model helps eliminate the inefficiencies of legacy QA workflows, noting that “the current status quo of QA is typically you have a separate team in an engineering organisation that’s QA, or you outsource,” which can result in engineers “toss[ing] it over the wall to my QA counterpart for tests and then get my bug reports and it goes back and forth.”
He described this as “very inefficient,” adding that customers since launch have reported “a 60% reduction in debugging time and a 30% reduction in test execution time.”
Wider investment surge
Momentic’s momentum comes amid a much wider investment surge into QA platforms built for the AI era.
In Seattle, TestSprite recently raised $6.7 million in seed funding as it positions itself as “the testing backbone of the AI-native development era.”
Its backers argue that as coding tools such as Cursor, Windsurf and GitHub Copilot accelerate software delivery, the real constraint is no longer writing code but validating it.
Trilogy Equity Partners’ Yuval Neeman said, “We’re witnessing a fundamental shift in software development. While everyone focuses on AI writing code faster, the real constraint is validation.”
CEO Yunhao Jiao echoed that sentiment, stating that “writing code is no longer the hard part, the real challenge is ensuring it behaves exactly as intended.”
He added that “AI coding tools like Cursor have made development 10x faster, but they’ve also created a new risk bottleneck: testing and validation can’t keep up.”
Across the Atlantic, synthetic-data specialist Synthesized raised $20 million in Series A financing to expand its AI-native testing platform, with Deutsche Bank increasing its investment in the firm.
CEO Nicolai Baldin said: “Test data infrastructure is the foundation for quality software. By embedding agentic AI into every layer of testing, we’re enabling organisations to modernise QA processes, accelerate digital transformation, and confidently adopt AI-native testing.”
He added that the company is “scaling our team and accelerating our mission to make AI-driven test data and infrastructure the foundation for modern enterprise QA and software delivery.”
Emphasising the importance of catching issues at the data layer, Baldin said, “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.”
UBS’s Christopher Purves supported the investment thesis, saying the “market opportunity for Synthesized is vast and growing,” and argued that “AI-based and more traditional software applications are only as good as the data used in their development.”
“AI-based and more traditional software applications are only as good as the data used in their development.”
– Christopher Purves
Meanwhile in Tel Aviv, MetalBear, the startup behind the cloud-testing tool mirrord, secured $12.5 million to address what it calls a deep and largely unacknowledged burden on digital teams: the inability to test code realistically without constant deployment cycles.
CTO Eyal Bukchin said, “We’re witnessing a mismatch in modern development,” adding that “AI can now generate code in seconds, but developers still face constant friction testing it.”
He described repeated deployment cycles as “the biggest hidden bottleneck in software development today.”
Together, these raises point to a major structural shift in the technology stack of financial institutions. As Andrew Ng noted: “As AI gets better at generating code, ensuring that code works as intended becomes even more important. Reliable evaluation pipelines are critical for scaling trustworthy AI systems.”
For banks and fintechs, that reliability is increasingly both a regulatory mandate and an operational necessity. Banks and other companies cannot safely deploy AI-generated code without test automation that is intelligent, adaptive and compliant-ready, and investors are betting heavily on the companies building those systems.
Within this landscape, Momentic’s $15 million round signals that the market for AI-driven QA tools is not just expanding but maturing.
Wu framed the opportunity simply: “All of these apps need testing,” he said. “They care about quality, and we’re going to provide it for them.”
COMING IN 2026
Why not become a QA Financial subscriber?
It’s entirely FREE
* Receive our weekly newsletter every Wednesday * Get priority invitations to our Forum events *
REGULATION & COMPLIANCE
Looking for more news on regulations and compliance requirements driving developments in software quality engineering at financial firms? Visit our dedicated Regulation & Compliance page here.
READ MORE
- Trust, not speed: Why AI governance is now a testing battleground for banks
- NatWest’s AI trade finance overhaul opens new chapter for QA teams
- Banking UAT moves beyond sign-off as QA takes centre stage in system rollouts
- Citi ramps up AI-driven testing in race to modernise legacy systems
- Lloyds, HSBC and NatWest get OpenAI access amid mounting concerns
WATCH NOW
QA FINANCIAL PODCASTS
