Sift Science Nets $30 Million in New Funding, Launches New Fraud Products
July 19, 2016
Silicon Valley antifraud startup Sift Science today said it has closed on a Series C round of financing totaling $30 million. Proceeds of the funding round, led by tech veteran Insight Venture Partners, will be used, in part, to help launch three new products designed to attack different areas of payment fraud that affect online businesses. Sift Science is one of a new vanguard of companies employing machine learning to root out card-not-present fraud for e-commerce merchants. But, according to Sift’s CEO Jason Tan, the company’s clients were using its technology to do other things besides score e-commerce transactions for the likelihood of fraud.
“Fraud comes in all shapes and sizes and there are bad actors everywhere in all corners of the Internet for all types of businesses,” Tan told CardNotPresent.com. “This includes people posting spammy content and fake listings on community marketplaces, people creating fake accounts for all kinds of purposes or people taking advantage of referral programs and promotional affiliate programs or free trials. The inspiration for these products came directly from our customers. We had overwhelmingly positive proof from our customers that there would be interest in helping them solve these additional kinds of fraud.”
The new products will be aimed at controlling account abuse, content abuse and promo abuse, Tan explained. Tan said machine learning technology really comes into its own as businesses start to look for new ways to expand.
“If you think about content, commerce and community online, businesses will often start in one of them,” Tan said. “But as they grow, they are looking for additional ways to attract, engage or monetize users, they might enter one of the ‘Cs’ they’re not yet in. To operate at that scale across different products and geographies, we see ourselves playing an integral role. It’s the grand promise of a well-designed machine-learning system—it can keep up as your business develops.”
Including the investment revealed today, Sift Science has raised a total of $54 million. In additional to Insight, prior investors including Union Square Ventures and Spark Capital participated in the Series C round.