2022 has seen soaring inflation rates worldwide, tumultuous equity markets and a significant slowdown in venture investments. Despite this slowdown, the fraud prevention industry has seen the flow of capital investment in the ecosystem continue with nearly $1B in venture capital being injected into various startups.
While there have been almost no new IPOs within the ecosystem, this is more of a symptom of a decline in the global IPO market and less of reflection on the strength of the fraud prevention industry.
We’re seeing a clear pattern in the type of startups that received investments. Many are identity solutions like HUMAN, OCRLabs and Alloy which provide solutions to help users determine if the end-user is who they say they are. It’s clear identity fraud such as ATO is becoming a major issue for merchants. We hope some of the investment in new technologies in this sector will help drive more robust adoption of solutions that mitigate this problem.
Fraud Prevention Companies that raised funds in 2022
Alloy raises $52M Funding at $1.55B valuation to scale fraud prevention identity tools.
OCRLabs raises $30M in Series B funding to help bolster its identity solutions for merchants
Sardine.ai raises $51.5M in Series B from Anderseen Horowitz to help fintechs and crypto firms find fraudulent transactions.
ID Now received $60M in Debt Facility to expand its digital identity platform.
Lucinity raises $17M in Series B funding to help banks and fintechs fight financial crimes.
FootPrint raises $6M Seed Funding – to help merchants securely onboard new users.
SEON raises $94M Series B – to expand its unified ecommerce fraud prevention solution into new markets.
Silverfort raises $65M Series C – to boost its identity threat prevention solutions for enterprises.
Checkout.com raises a whopping $230M Series A to help merchants with a more secure and safe checkout and payment solution.
Bolster – Raises $15M Series A – to help find fakes and fraud for global brands.
HUMAN – Raises $100M to combat bots and help ecommerce merchants determine if there is a real person behind the screen.
nSure.ai Raises $13M Series A to help fight fraud and help merchants increase approval rates.
Veriff raises $100M in series C in one of Estonia’s largest funding rounds to help boost R&D and growth of its identity verification solution
iProov raises $70M in funding for its biometric identity verification solution.
TrustStamp raises $8.8M in seed funding for its biometric identification platform.
Silent Eight raises $40M in series B to help combat financial crimes.
Fraud Prevention Companies that were acquired in 2022
Ping Identity acquired for $2.4B by private equity company ThomaBravo.
Midigator acquired by Equifax for an undisclosed amount.
HooYu acquired by UK based Digital Identity solution provider Mitek for $128M
ChargebackOps acquired by ClearSale for $4.2M
Verisk financial risk management solution acquired by Transunion for $515M