Denki, a San Francisco-based startup founded by brothers Felipe Jin Li (24) and David Jin Li (20), has raised $4.1 million to automate financial audits using AI-powered software. The company, which participated in Y Combinator's Fall 2025 cohort, aims to modernize the audit process by replacing manual, evidence-heavy workflows with automated solutions that make audits more efficient and rigorous.

Base10 Partners and Shine Capital co-led the funding round, with participation from Y Combinator, 20VC, and others. The startup's software helps auditors review evidence faster, document work more effectively, and test process controls with higher risk coverage while reducing costs. Denki's founders bring complementary expertise - Felipe was pursuing a Ph.D. in explainable AI at University College London, while David built financial data pipelines at hedge fund-trusted company Macro Hive.

The funding comes amid a 27% surge in global fintech investment, with $52.9 billion raised in 2025 according to Crunchbase data. Denki's timing appears strategic as regulatory scrutiny intensifies - the Public Company Accounting Oversight Board imposed $17.7 million in penalties last year, signaling growing pressure on traditional audit methods. The company plans to use its new capital to hire engineers and auditors as it targets pre-IPO and publicly traded companies.