BioCatch announced it has completed a $145 million Series C investment led by Bain Capital Tech Opportunities, the growth investing business of Bain Capital. Also joining the round are new investors including Industry Ventures as well as existing shareholders American Express Ventures, CreditEase, Maverick Ventures and OurCrowd, among others.
„The investment will accelerate BioCatch’s rapid growth, broaden its product offerings and further support its expanding client base into new verticals.”, according to the press release.
BioCatch’s category-defining behavioral biometrics technology seeks to protect some of the world’s largest financial institutions, their clients and their clients’ assets from fraud and other types of criminal activity, including sophisticated social engineering voice scams.
Unlike traditional security methods such as usernames and passwords, which are easily compromised, behavioral biometrics monitors user behavior throughout each online session, providing continuous protection and ensuring a secure and seamless online experience.
The company grew annual recurring revenues by 150% in 2019 and now counts more than 40 of the world’s largest global financial institutions as customers.
“BioCatch’s growth in annual recurring revenue and client base speaks directly to the growing demand for our service and the increasing number of use cases we are able to support,” said Howard Edelstein, BioCatch Chairman & CEO. “The current environment has spawned a large increase in bad actors seeking to take advantage of distracted individuals working from home or dispersed companies whose technologists are scattered in remote locations. In such times, technologies like behavioral biometrics become more important than ever.”
As the behavioral biometrics market has grown, BioCatch’s solution has resonated within other verticals. The company signed its first eCommerce client in 2019 and is planning to launch in the public sector in 2020. Use cases have also expanded as the company’s client base and data set have enabled new solutions across the digital lifecycle. BioCatch is addressing some of the most pressing challenges today, including detecting the use of stolen or synthetic identities at the onboarding stage, recognizing account takeovers and flagging increasingly sophisticated social engineering scams.
Bain Capital has deep investing experience across the cybersecurity and financial technology sectors, having invested in and added value to a wide range of early-stage to mature software companies such as Blue Coat (acquired by NortonLifeLock), InAuth (Acquired by American Express), RDC, Trooly and WorldPay (acquired by FIS).
“BioCatch has quickly established itself as a pioneer in the digital identity space by developing next-generation behavioral biometrics technology that integrates fraud detection and authentication capabilities to protect end-users and their most sensitive transactions. Their technology is highly applicable to other verticals beyond financial services that have the same need to balance fraud and the user experience,” said Dewey Awad, a Managing Director at Bain Capital Tech Opportunities.
Founded in 2011 by experts in neural science research, machine learning and cybersecurity, BioCatch set out to address the next generation cyber threats by focusing on the behavior of the fraudster as opposed to adding new fortification layers. With less fraud and less user friction, BioCatch enables organizations to provide their customers increased security and a better user experience.
While serving in military intelligence, founder Avi Turgeman began pursuing a theory that people interact with machines in unique, measurable ways. Drawing on years of experience exploring white-hat hacking, system vulnerability management and how cyberterrorists operate, Turgeman turned his attention to online fraudsters and their identifiable signatures, co-founding the company with Benny Rosenbaum. The BioCatch concept is based on his work to create an identity theft safeguard employing continuous biometric authentication.
In developing a platform to identify both human and non-human behaviors online, BioCatch revolutionized the way organizations secure online assets. Today, the company continues to innovate while driving awareness of the next generation of fraud prevention needs. BioCatch ambitiously addresses a broad range of cyber concerns with an unparalleled portfolio of more than 45 granted or pending patents.
BioCatch’s dynamic, enterprise-grade solution is deployed at major banks and eCommerce sites worldwide. The system proactively collects and analyzes more than 500 parameters to generate unique user profiles and model different types of genuine and malicious behavior.
The BioCatch platform continuously authenticates users to protect against cyber threats and fraudulent activity, such as account takeover and RAT-in-the-Browser (RitB) threats, reducing false alarms while providing impressive returns on investment. With its team of experts bringing decades of experience in authentication and fraud prevention, BioCatch continues to drive innovation and leadership around digital identity and cybersecurity.
„Tendinţele pe care le-am remarcat înainte de începerea pandemiei s-au accelerat pe perioada stării de urgenţă. Am văzut acest lucru ca o oportunitate, un tipping point pentru bancă. Post-pandemie nu avem cum sa ne întoarcem la comportamentul financiar pe care îl aveam până în februarie a.c. Relaţia românilor cu online-ul s-a schimbat. In plus, cardul fizic se va dematerializa. Vom asista la o scădere a cererii pentru cardurile fizice, respectiv la o creştere a preferinţei pentru componenta digitală a acestora.”