Neuro-ID, the pioneer in Behavior-as-a-Service (BaaS) technology, today announced that it has raised a $7 million Series-A funding round led by Fin VC and TTV Capital. Canapi Ventures also participated in the round.
Founded in 2014, Neuro-ID’s Human Analytics simplifies access to an organization’s behavioral data to reveal key insights into the intent behind an interaction and the specific mindset of the digital customer experience. It serves industry leaders in payments, lending, insurance and banking. By providing visibility into anomalous/atypical behaviors, Neuro-ID’s proprietary technology detects and isolates fraud in real time, allowing genuine customers to complete their transaction while effectively stopping fraud before it starts.
Jack Alton, CEO of Neuro-ID, said:“Every company attempting to digitally onboard a new consumer, business or partner already has a valuable trove of behavioral data. However, capturing and interpreting how someone taps, types and swipes in real time has proven to be difficult for even the most sophisticated digital organizations. This powerful new view into our clients’ behavioral data has enabled them to systematically reduce unnecessary friction for their genuine customers, while adding a valuable new layer of defense to stop 1st and 3rd party fraud. The implications for improved conversion and the overall digital customer experience have been game changing.”
For every $1 of fraud, it costs financial services firms $3.64 in associated overhead. Successful fraud attempts in the COVID world have increased by 30%, according to LexisNexis. Meanwhile less than 10% of people that start a digital journey, finish it. Crucially, Neuro-ID tools have decreased fraud by 35% while increasing conversion by 200% by allowing businesses to remove high friction verification for their genuine customers.
Speaking on the announcement Logan Allin, Managing General Partner with Fin VC said: “We believe the integration of innovative technology like Neuro-ID is the future for financial institutions, insurers, and corporates to understand and connect with their digital customers and optimize conversion while reducing behavioral fraud, which costs the industry millions of dollars annually. Fin VC is thrilled to work with Neuro-ID as they continue to grow rapidly and make behavioural data applicable to everyone by enhancing customer experience in a less invasive and privacy preserving manner.”
Gardiner Garrard, founding partner at TTV Capital, said: “Neuro-ID’s rapid growth is evidence of their technological capabilities, a testament to their world-renowned founders and experts in Human-Computer Interaction (HCI), Drs. Joe Valacich and Jeff Jenkins, and validation for more than a decade of pioneering research.”
Neuro-ID will use the additional capital to accelerate product development and market penetration, to ensure digital organizations of all sizes have the ability to translate their behavioral data into actionable insights and improve customer conversion.
Neuro-ID is pioneering the Behavior as a Service (BaaS) space, providing a new standard for collecting, translating and actioning on the real-time behaviors of digital interactions. Through a body of patented technology called Human Analytics™, Neuro-ID leverages over a decade of scientific research and discovery in Human-Computer Interaction (HCI) to measure both customer Intent and Experience. For companies, this real-time behavioral data is used during the digital onboarding process to segment genuine from fraudulent customers, enabling them to maximize conversion, reduce false positives and stop sophisticated fraud. Neuro-ID is committed to shaping the Digital Transformation in positive ways, by helping recapture critical human elements lost when business moved online. For more information, visit neuro-id.com.
About Fin VC
Fin Venture Capital is focused on Enterprise SaaS FinTech companies and specific theses within six sub-sectors: Embedded Finance, Asset Management/Capital Markets, CFO Tech Stack, InsureTech, Blockchain Enterprise Applications, and Enabling Tech/Infrastructure. Fin VC principally focuses on the US and EU/UK. As former corporate and start-up operators, the Fin VC team takes an active value-added approach, leveraging its Operating Playbook to steward its portfolio companies with business development, capital formation, corporate development, board advisory and talent sourcing.
About TTV Capital
TTV Capital invests in fintech businesses that serve the widely varying needs of the financial services sector and the consumers of financial products. Our team of experienced technology and financial services professionals has more than 100 years of venture capital and highly relevant industry operating expertise acquired across three decades and multiple economic cycles. We create value for entrepreneurs and investors by using our knowledge, experience and relationships to help businesses grow and succeed.