Increasing eCommerce is creating a demand for better fraud protection. One firm with a bright future is Signifyd, which has just received venture funding that will allow it to build on its machine-learning technology.
Signifyd has received $19 million in funding from American Express Ventures, Menlo Ventures and TriplePoint Capital. The company is in the rapidly expanding space of fraud protection for eCommerce.
Signifyd was founded Raj Ramanand and Mike Liberty, fraud experts who were previously with PayPal. At the end of 2015, the company announced it had a run rate of $5.6 billion in transaction volume, with 800 percent year-over-year revenue growth and triple the number of employees.
ECommerce firms often outsource fraud protection because they lack the resources to combat fraud themselves and would experience lower margins if they did so. Signifyd provides a guarantee that it will pay for any fraud-associated costs that are a result of a Signifyd-approved transaction.
This guarantee has given merchants up to a 20 percent increase in margins.
Most solutions provide retailers with a rules-based cryptic score, and the decision to accept a transaction is made based on human expertise. Signifyd uses machine-learning algorithms run on web data to assess risk. Signifyd identifies legitimate purchases for the sellers and whether the product should be shipped.
Ramanand expressed his delight at the funding by Menlo Ventures and American Express.
“We’re thrilled to partner with Menlo Ventures and American Express. They are pioneers in financial innovation, enhancing core capabilities and accelerating digital commerce. Our unique approach to delivering a 100 percent financial guarantee is disrupting digital commerce by driving cash flow predictability to businesses. This was previously not possible, and our growth validates the appetite in the market.”
Signifyd plans to use the latest round of funding to optimize its machine-learning technology and extend its infrastructure. Back in February, the firm received $20 million in Series B funding.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More