Cambridge Capital Group Portfolio Company Secures £6.2m
Fraud detection specialist Featurespace has raised £6.2m in its latest funding round.
The Cambridge adaptive behavioural analytics business has received the cash in a funding round led by Imperial Innovations and TTV Capital, a US venture company focused on early-stage fintech companies. Imperial, which is already an investor in Featurespace, has put a fresh £2.5m into the company, with TTV contributing £2.4m.
Jon Edington, director for technology ventures at Imperial Innovations, said: “This new funding round reflects the great progress Featurespace has made over the last year, including announcing major new customer wins with companies based in the USA. The most recent of these is a new partnership with TSYS, one of the world’s largest payment solutions and services companies, in which Featurespace’s adaptive behavioural analytics platform will be used to reduce fraud for TSYS’ clients.
“Featurespace’s strong management team has an impressive track record of building B2B software businesses. They are targeting a growing global fraud detection market which was worth $2.4bn in 2014 and is growing at 30% per annum, according to Forrester.
“This new funding will enable the company to expand its operations in the UK and US and to continue to grow its expansion in financial services.”
Featurespace’s system has the ability to develop an understanding of normal patterns of behaviour and anomaly detection for individuals in real time. The company has developed a machine learning software platform, the behaviour analytics engine (ARIC) that monitors every individual, one customer at a time, to deliver real-time decision capabilities. The technology is based on Bayesian statistics and research undertaken at Cambridge University by the late Professor Bill Fitzgerald and Featurespace CTO, David Excell.
Featurespace’s products provide significant economic benefits to their customers, providing a granular view of transactions allowing them to predict likely fraud and take appropriate action. The software learns individuals’ behaviour and therefore produces a significantly higher level of accuracy identifying fraud and a lower level of false positives compared to competing solutions.
The company, which has raised more than £9.5m since 2008, has deployed its software in more than 180 countries around the world, and its clients include big names from the gambling industry such as William Hill, Betfair and Camelot.