Sydney-based venture capital firm EVP has launched an investigation into financial discrepancies at StrongRoom AI, a pharmacy software company.

This follows StrongRoom AI’s recent US$17 million capital raising, which valued the company at nearly US$70 million.

Sources indicate that EVP has hired legal and forensic accounting professionals to examine StrongRoom AI’s financial records.

The matter has reportedly been escalated to law enforcement due to “financial misrepresentations” uncovered during the due diligence process.

EVP confirmed it is “pursuing all avenues to recover the investment.”