Fraud protection startup Feedzai Inc. has raised $17.5 million Series B in a round led by Oak HC/FT that included existing investors Sapphire Ventures (formerly SAP Ventures) and Espirito Santo Ventures.
As part of the deal Oak HC/FT General Partner Patricia Kemp and Venture Partner Jonathan Weiner will join Feedzai in board of director roles.
Founded in 2011, Feedzai uses machine learning and big data science to make commerce safe. Their software is said to pinpoint risk and block fraud earlier, reducing loss and unnecessary intrusions.
Feedzai’s machine learning platform aims to transform the management of risk and fraud into a real-time decision science to help payment providers, banks and retailers prevent fraud in omnichannel commerce.
“Fraud detection and prevention is an important investment opportunity in the U.S. and Europe,” Oak HC/FT General Partner Patricia Kemp said in a statement sent to SiliconANGLE. “Feedzai’s capabilities in big data science and machine learning, combined with its strong management team, have enabled the company to create a powerful portfolio of fraud-prevention solutions for the world’s largest banks, retailers and payment providers.”
The company is said to have analyzed more than 18 billion transactions—equivalent to more than $760 billion in payment volume, in 2014, and counts among it clients some well-known names including First Data, Celfocus, Coca-Cola, Logica, Vodafone, Ericsson, and Servebase Credit Card Solutions.
A solution with a real problem
Fraud is a massive problem, not just in pure financial services plays, but across a range of established companies and startups.
Feedzai’s fraud detection service API for developers is a fascinating way to implement a software as a service (SaaS) solution to the problem, and their client base speaks well in terms of them providing a solid service as well.
Including the new round, Feedzai has raised $22 million to-date. Previous investors who didn’t participate in the new round include Novabase Capital, EDP and Data Collective.
The company said it would use the new round to expand sales and engineering teams to help meet customer demand for the company’s software platform.