Fraud prevention firm Arkose Labs has recently announced that they have raised $70M in series B funding.
This new funding will allow the company to further develop their next-generation fraud prevention technology and expand their team to deliver an even stronger platform.
Arkose Labs solves the most pressing fraud challenges in gaming, ecommerce, payments, and other industries. This new funding will help them deliver even better solutions to their customers.
Overview of Arkose Labs
Arkose Labs is a global fraud prevention platform founded in 2016 and based in San Francisco, California. The company recently announced a $70 million Series C funding round to fuel its growth and support its mission to help businesses protect against automated fraud attacks.
Arkose Labs’ product suite is designed to prevent access and fraudulent activity across customer accounts, including in sectors that require identity verification or consumer authentication for access. Their flagship product, the Arkose Fraud Prevention Platform is built with a patented technology that can detect real-time patterns related to the unique characteristics of each consumer transaction. In addition, it offers customers advanced fraud protection capabilities such as detecting and blocking malicious activity, sophisticated risk analysis, machine learning-based reputation modelling and more.
The platform also provides customised fraud solutions tailored to customer requirements by combining multi-factor authentication with out-of-band risk scoring algorithms. This helps organisations protect their digital assets while enabling streamlined customer experiences with low latency customer experience times. Additionally, it integrates with existing business units (e.g., marketing teams) and security protocols (e.g., biometric data) so that customers can define their defence strategy while keeping user experience in mind.
The company has secured partnerships with market leaders like Airbus Group Services Solutions Gmbh (UK), Rackspace® Technologies Inc., UBS AG and Mastercard International Inc., among many others globally who are leveraging Arkose Labs’ comprehensive solutions for their Fraud Prevention needs.
Fraud prevention firm Arkose Labs raises $70M
Fraud prevention firm Arkose Labs recently announced that it has secured $70M in a funding round led by PayPal Ventures. Other investors joining the round included Trilogy Equity Partners, Santander InnoVentures, and PayPal Chief Executive Dan Schulman. This brings the total capital raised by Arkose Labs to $100M.
In this section, we’ll look at the details of the investor funding and why they decided to invest in Arkose Labs.
Amount raised
Arkose Labs, a global leader in online fraud and abuse prevention, announced that it has raised $70M in a Series C funding round led by venture capital growth ($50M) investors Susquehanna Growth Equity, with participation from existing investors Boldstart Ventures, ForgePoint Capital, Adobe Ventures and Greycroft.
This brings the total funding the company has raised to $130M. The new funding will be used to scale their cloud-native platform and expand into new markets globally. Additionally, the company plans to innovate advanced technologies like machine learning, identity verification and advanced analytics against sophisticated attempts at fraudulent activity.
Arkose Labs’ unique enforcement platform provides businesses with the technical assurance needed to manage fraud attacks at scale in increasingly digital environments. By leveraging powerful machine learning algorithms, game theory models and behavioural analysis, and renowned customer service, Arkose Labs is helping its clients drive improved customer experiences through reduced false positive rates of up to 90%.
Who are the investors
Arkose Labs has closed a Series C funding round totaling $70 million in additional capital to fuel its global expansion. The round was led by Eight Roads Ventures, with participation from existing investors such as Telstra Ventures, PayPal Ventures, and SBI Investment.
Additional new investors include North Island, the Global Innovation Fund (GIF), and Paladin Capital Group. Each of these organisations brings valuable insights into pervasive fraudulent activity that Arkose Labs is actively working to prevent.
Eight Roads Ventures’ Managing Partner Mike Reinert said his company was intrigued by the potential for Arkose Labs’ technology to fight fraud on a global scale: “The significant investments we have made in risk and fraud serve propelled us toward this intersection of security and growth. By powering some of the largest online companies in the world with its innovative technology, Arkose Labs has proven it is capable of delivering both security benefits and exceptional user experience outcomes.”
Telstra Ventures’ CEO Mark Sherman stated that the latest cash injection will help position Arkose Labs as a leader in cyber security: “Our current relationship with Arkose Labs demonstrates our confidence in this company to safeguard customer data – all while delivering deep visibility into end-user engagement – ultimately helping companies unlock additional revenue opportunities.”
How the Funds Will Be Used
Fraud prevention firm Arkose Labs announced today that it recently raised $70 million in a Series B funding round.
According to the company, the funds will continue building its anti-fraud platform and expand its services and presence in the global market. The company also said it will use the funds to drive innovation and acquire new technology to stay ahead of ever-evolving fraud tactics.
Expansion plans
Arkose Labs has announced that it has raised $70 million in its latest round of funding, bringing its total capital to over $90M. The funds will be used to expand the company’s activities in fraud prevention and create new solutions for digital trust and safety. The evaluation reached $250M and will be utilised to invest more heavily in technology, product and go-to-market initiatives, drive continued innovation, grow the F abuse performance platform, expand into new vertical markets, increase market presence across key markets such as Europe and the U.S., add personnel to support new technology initiatives, open offices in different geographic locations, strengthen strategic partnerships with global organisations such as Google Cloud Platform (GCP) and MasterCard, expand offering models beyond a software-as-a-service (SaaS) approach with value-added services (VAS), engage with research programs to uncover solutions for modern trust infrastructure requirements.
In addition, Arkose Labs will utilise their recent capitalization event to rapidly scale up their operations until they have fully gained global traction within the digital trust industry.
Research and development
Research and development is a key component of Arkose Labs’ mission. With the additional capital, the company plans to expand its research and development efforts to create advanced fraud prevention products and services.
This includes investing in new machine learning models, artificial intelligence-based detection algorithms, and API-driven security solutions that help companies protect their online applications and prevent fraudulent activity.
Through increased R&D investments, Arkose Labs can address a wider range of online security needs while improving existing fraud prevention solutions.
Market Overview
Fraud prevention firm Arkose Labs recently raised $70M in a Series B financing round. This round of funding, led by PayPal Ventures, has increased the company’s total venture capital to $90M. This significant funding gives us a great insight into the overall market for fraud prevention solutions.
The following overview will look at the current state of the market and trends that have been identified.
Size of the fraud prevention market
The global fraud prevention market size was valued at USD 18.40 billion in 2018, and is expected to grow at a compounded annual growth rate (CAGR) of 11.0% from 2019 to 2025. The market is driven by the increasing adoption of advanced technologies such as machine learning (ML), artificial intelligence (AI), natural language processing (NLP), and blockchain, decreasing cost of sophisticated tools, and growing awareness about fraud among government establishments and businesses.
Organisations are increasingly adopting policies such as stringent Know Your Customer (KYC) regulations for malicious activities prevention purposes, driving the growth of the fraud prevention market.
Moreover, with the implementation of regulatory mandates across various industries, financial institutions are required to deploy stronger anti-fraud solutions to detect fraudulent activities such as account takeover events or ID theft attempts. This encourages organisations to adopt innovative ML-driven fraud detection solutions that automatically identify suspicious behaviour and reduce false positives and negatives from a fraudulent event timeline.
Organisations across various industries have invested heavily in fraud prevention tools to help secure user data from fraudulent activities. Furthermore, digitalization has made it easier for organisations to share data between their internal departments to detect any potential threat beforehand and eliminate malicious activities on time. These factors are expected to drive the overall market for fraud prevention solutions during the 2019–2025.
Key players in the industry
The fraud prevention and risk management market is highly competitive, with many companies trying to gain market share. Many key players in the industry, including Arkose Labs, Inc. This company has recently raised $70 million in funding and is expanding its presence in the market.
Other prominent players within this space are Riskified, Forter, Kount, Pindrop Security and Early Warning Services. These companies provide authentication services and risk management solutions, enabling them to offer protection against fraudulent activity. Each of these companies has a unique approach to solving problems related to fraud prevention and risk management.
Other companies which have recently entered the space include Fraugster Ltd., Signifyd Inc., Sift Science Inc., iovation Inc., Zenedge Inc., Priv 3D Inc., Meniga Iceland ehf and MetricX. Each of these new entrants bring their distinctive offerings to the fraud prevention arena designed to meet the needs of businesses worldwide that take payments online or those requiring strengthened identity verification processes.
As fraud evolves with new technologies, this sector will remain very competitive as new entrants bring innovative approaches and technologies into play. Furthermore, as identity theft continues to plague society worldwide, competition will likely continue for years.
tags = Arkose Labs, platform to detect and mitigate online fraud, raised $70 million, SoftBank Vision Fund 2, arkose series softbank vision 70m fundwiggersventurebeat, fake account abuse, scraping, spam, gift card abuse, scam
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