BioCatch, a global leader in behavioral biometrics, announced today that it has closed a $30 million financing round, cementing its growth plan and vision to redefine digital identity and enable renewed trust in online interactions.
The round was led by Maverick Ventures, with additional participation from American Express Ventures, NexStar Partners, Kreos Capital, CreditEase, OurCrowd, JANVEST Capital and other existing investors. With identity fraud and cybercrime continuing to grow rapidly, it is clear that the concept of digital identity is broken. Behavioral biometrics, which BioCatch helped to pioneer, holds the promise to upend the cybersecurity paradigm and provide identity assurance throughout the connected economy.
"BioCatch helps to answer the question, 'who are you' in an online world where fraudsters operate with the legitimate credentials of others, making it very hard to distinguish them from authorized users," said Howard Edelstein, BioCatch Chief Executive Officer. "We take pride in the track record we have amassed and the role that we play as an integral part of our clients' identity strategy. This strategy cuts across the digital ecosystem, from stopping fraud in real-time to preventing fake accounts from being opened in the first place, all while enabling a seamless user experience."
"As the company pursues its growth trajectory, we are pleased to welcome our new investors into the fold. This latest investment round is a testament to the commitment and the capacity that we have to change the way identity is managed online. Relationships with companies like Experian, LexisNexis Risk Solutions, Samsung SDS and others demonstrate how BioCatch is contributing to digital transformation, and this round of funding will enable us to take our efforts to a whole new level," Edelstein added.
"BioCatch's robust behavioral analytics platform is helping companies identify and stop fraudulent activity without sacrificing the user experience for legitimate customers," said Harshul Sanghi, Managing Partner of Amex Ventures, the strategic investment group within American Express. "The demand for organizations to strike that balance will only increase as digital engagement with their customers grows, and cyber threats become more sophisticated. We're excited to support BioCatch as it works to expand its capabilities and help organizations, including American Express, address this critical need."
Founded by experts in big data, machine learning and artificial intelligence, BioCatch set out to address the next generation of cyber threats by focusing on the behavior of the fraudster as opposed to adding new endpoint security layers. BioCatch proactively collects and analyzes more than 2,000 parameters to generate user profiles and model different types of genuine and malicious behavior. BioCatch's platform can address a wide range of threats at login and beyond by identifying malware, robotic activity, social engineering (phishing, etc.) and other cyber threats, which is a differentiator from traditional fraud approaches and other behavioral biometrics providers. The company monitors more than 5 billion transactions per month and generates real-time alerts when behavioral anomalies are detected, stopping fraud at the source and reducing the significant operational costs associated with managing the fraud. BioCatch also has a robust IP portfolio, with more than 56 patents that are either granted or pending. BioCatch has earned recognition for its innovative approach from many prestigious organizations, including Frost & Sullivan, Singapore FinTech Festival, Red Herring and others.
"BioCatch has made its mark as behavioral biometrics emerges as a key component in driving authentication and fraud strategies today. Their technology helps minimize friction for the end user, working passively in the background, eliminating the trade-off that has been made to date between security and the user experience," said Julie Conroy, Research Director of Aite Group's Retail Banking & Payments Practice. "Practitioners are being hit from multiple directions – ever changing cyber threats, new regulations and open banking requirements, global trends towards real-time and faster payments, and customer demands for more functionality in the digital channel. Whether in banking, insurance, cryptocurrency, P2P payments, healthcare, government or otherwise, enterprises large and small are all facing the same identity challenges. BioCatch has shown that behavioral biometrics can help change the paradigm," she added.
"Identity is becoming a central component that drives all things digital, which makes the BioCatch story extremely compelling on multiple levels," said Matthew Kinsella, Managing Director of Maverick Ventures. "The company has demonstrated impressive traction and its clients are enthusiastic on the many ways that the technology can be used. We are delighted to be part of the next chapter as the company leads the way in redefining how identity is defined and managed."