New investment will take the e-commerce fraud-protection leader to the next level, as it continues to develop its technology, grow the team in New York and Tel Aviv and expand into new markets
NEW YORK CITY, June 27, 2017 – Riskified, the world’s leading e-commerce fraud prevention solution, announced today that it secured an additional $33 million of growth stage funding, bringing the company’s total funding to $64 million. The most recent round of funding was led by Israeli-based Pitango Growth and joined by Capital One Growth Ventures, Groupe Arnault, the controlling shareholder of LVMH, and C4 Ventures. Existing investors also joined the round. Riskified plans to use the funds to accelerate market penetration, solidify its position as the market leader and serve new merchants internationally.
Riskified’s industry-leading machine learning algorithm, proprietary behavioral analytics and the amplifying effect of its wide network protect merchants from fraud while maximizing their revenue. Retailers including Foot Locker, Simplehuman, Macy’s and many more rely on Riskified to provide a better customer experience while lowering overhead. Riskified has reviewed hundreds of millions of transactions and approved billions of dollars of revenue for merchants across virtually all industries, including a number of Fortune 500 companies.
"We’re proud to announce that we’ve closed series C funding with these exciting partners," said Eido Gal, Co-founder and CEO of Riskified. "Their commitment further validates our technology and approach to fraud prevention. The partnership with Capital One will be a true competitive advantage as we expand into new markets."
According to research conducted by LexisNexis, the total number of fraud attempts has increased in each of the last five years and shows no signs of slowing. Staying ahead of fraud requires a significant investment of time and resources, and even the best in-house solutions only have access to orders placed on their systems. Riskified pulls from exponentially more data points to get a fuller picture of fraudsters and buyers.
“E-commerce fraud is a rapidly evolving threat to merchants everywhere. Riskified has shown a deep understanding of the fraud landscape and a keen ability to recognize fraudulent orders, helping better equip its customers to tackle this threat head-on,” said Aman Sharma, Partner of Capital One Growth Ventures. “We are proud to partner with Riskified as it continues to enhance its fraud prevention technology and expand its global reach.”
Aaron Mankovski, Managing General Partner at Pitango Growth, will be joining Riskified’s board of directors. “Fraud management has reached a point where in-house solutions are not good enough to protect e-commerce sites,” said Mankovski. “Network solutions like Riskified are becoming a must-have for e-commerce merchants. After thorough research, we have come to the conclusion that Riskified is the most innovative and best anti-fraud solution on the market, and we are proud to invest in its disruptive technology and exceptional team.”
Investors including Qumra Capital, The Phoenix Insurance Company, Genesis Partners and C4 Ventures, featuring former Apple executive (NASDAQ: AAPL) Pascal Cagni, participated in the funding. This announcement is the latest in a number of exciting developments for Riskified. The company opened its New York City office in October of last year and has already quadrupled in size. Gal relocated from Tel Aviv in April to better work with US-based companies. And merchants using Riskified have recently been transitioned to a new, more user-friendly and informative web app.
"It’s impossible to overstate how much better Riskified has become in the five years since we launched chargeback-guarantee fraud prevention,” said Gal. “But we can’t rest on our laurels. We’ve gotten smarter, but so too have the fraudsters. These investments will help us continue to grow, staying ahead of our competition, outsmarting e-commerce fraud and helping our merchants build successful businesses.”
Riskified is the world’s leading e-commerce fraud-prevention solution. We’re trusted by hundreds of global brands – from luxury fashion houses and retail chains, to gift card and ticket marketplaces. Riskified's pay-for-performance and guaranteed-approval model provides a flexible, economical solution that drives revenue for retailers and enables a frictionless customer experience. Our proprietary technology uses intelligent automation and advanced fraud-detection methods to accurately analyze card-not-present (CNP) orders with machine learning algorithms, behavioral analytics, and device fingerprinting. Riskified was founded in 2013 and is headquartered in Tel Aviv, with US offices in New York City. For more information, please visit www.riskified.com.
Pitango has been investing in technology ventures since 1993 and now has more than $2 billion under management. Pitango invests in Israeli tech and healthcare companies, in various fields and all stages. Pitango Venture Capital has invested in over 200 companies, many of which have become public or were acquired by strategic players.
About Capital One:
Capital One Financial Corporation is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $241.2 billion in deposits and $348.5 billion in total assets as of March 31, 2017. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses, and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol ‘COF’ and is included in the S&P 100 index.
About C4 Ventures:
C4 Ventures is a leading European venture fund created by Pascal Cagni (VP & GM Apple EMEIA 2000-2012). Based in London and Paris, C4 Ventures invests in both European early-stage startups and late-stage startups seeking to expand into European markets.
C4 Ventures is a different kind of venture firm specializing in three sectors: the future of commerce, smart hardware, and digital media. Thanks to their operational expertise and a team of operating partners, C4 Ventures is best positioned to help entrepreneurs accelerate their business in the complex European landscape. Find out more on www.c4v.com or on Twitter @c4ventures.