Signifyd

artificial intelligence/machine learningregtechauthentication and fraud prevention

FOUNDING YEAR: 2011
LOCATION: United States
Last Update: 17/07/2020

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About

Signifyd (formerly known as Trusted Patterns) is an e-commerce fraud-prevention startup that analyzes online transactions to detect fraudulent activities. The platform leverages machine learning algorithms along with behavioral technology and data science research to safeguard online retailers against the risks of fraud. It also helps the merchant to prevent credit card chargebacks, thereby reducing loss associated with fraud. Signifyd was listed in Forbes' FinTech 50 and Bloomberg’s 50 Most Promising Startups. The company was also listed as one of Inc. Magazine’s Best Workplaces for 2018.

Focus

PRODUCTS & SERVICES

Signifyd offers a guaranteed fraud protection solution for online merchants which helps them to reduce fraud and chargebacks. In case of a fraudulent chargeback, it pays back the chargeback fees to the merchant within 48 hours. It leverages machine learning to automate fraud prevention that enables businesses to reduce risk and increase sales at the same time. Signifyd can be integrated on the existing e-commerce platform through an API.

REVENUE MODEL

The company earns revenue by charging a monthly subscription fee and a percentage fee per transaction (approved order). It also provides customized pricing services for enterprises.

MAIN CLIENTS

The company has major customers from e-commerce industry. Some of its customers: Makerbot

chegg

Zentail

Misfit

Zepp

build.com

HSN

Lumo Lift

Isaora

Wayfair

Petflow

Areatrend

Haven

Netaya

GearX.com

Lensrentals

UBIQ

Lumoid

Roden Gray

Campsaver

Pure Fix

Greats

Progenex

iRobot

Stance

Wayfair

etc.

EXISTING PARTNERSHIPS

Some of its partners; Salesforce Commerce Cloud

Magento

Accertify

ThreatMetrix

Shopify

Collins Harper

Praxis

etc.

COMMENT

Signifyd uses machine learning algorithms to analyze thousands of data points from various data providers to verify orders in real-time. Signifyd automates back-office operations including auto-fulfill and auto-cancel on orders and makes it easy for merchants to get paid for chargebacks.

Traction

VALUATION / MARKET CAP:

$400 M in 2018

VALUATION COMMENT:

Third-party sources claims that the company's valuation is around $400M to $600M.

REVENUE

$10M+ in 2017

REVENUE COMMENT:

The company's estimated revenue is $75M in 2017.

TRANSACTIONS COMMENT:

The company claims that it has protected sales orders worth $9.1B till date. (May 2018)

ACTIVE USERS COMMENT:

The platform is being used by more than 10,000 e-commerce merchants. (May 2018)

OTHER INFO:

The fraud detection and prevention market is estimated to reach nearly $42B by 2022.

TRACTION COMMENT:

The company is planning to open an office in Barcelona in next year to expand its operations in Europe.

People

FOUNDERS

Michael Liberty

Rajesh Ramanand

BOARD MEMBERS AND ADVISORS

Jai Choi

Maria Thomas

Ohad Samet

Safa Rashtchy

Tim Eades

NUMBER OF EMPLOYEES

51-200

INVESTORS:

AllegisCyber

American Express

Andreessen Horowitz

Bain Capital Ventures

Bill McKiernan

BYU Cougar Capital

Data Collective

Data Collective DCVC

FEP Fund

IA Ventures

Lucas Venture Group

Menlo Ventures

OVO Fund

Premji Invest

QED Investors

Resolute Ventures

Streamlined Ventures

Tekton Ventures

Thinkplus

Timothy Eades

TriplePoint Capital

KEY EMPLOYEES:

Rajesh Ramanand (CEO); Chendong Zou (Head of Engineering); Johannes Fischli (Head of Business Operations); Vahe Amirbekian (Head of Risk Product); Skye Spear (Head of Sales & Partnerships)

Momentum

FUNDED

YES

TOTAL FUNDING

$185 M

DATE OF LAST FUNDING

May 2018

TOTAL FUNDING COMMENT

The company is planning to use its funds to further accelerate its growth with global enterprise and omnichannel retailers to provide friction-free e-commerce to their customers. (May 2018)

SEED & PRIOR FUNDING

$2 M

SEED CLOSED ON

Dec 2012

FUNDING SERIES

SERIES A  · $7 M  · Jun 2015

SERIES B  · $20 M  · Feb 2016

SERIES C  · $56 M  · May 2017

SERIES D  · $100 M  · May 2018

LISTED

NO

COMMENT

There is a mismatch between total funding amount and overall funding rounds raised by the company.

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