Neuro-ID Introduces Frictionless Identity Screening Products to Help Solve the “Digital Identity Crisis”
Breakthrough Digital Identity Products Unlock Visibility into Pre-Submit Data;
WHITEFISH, Mont.–(BUSINESS WIRE)–Neuro-ID today announced that it has raised $35 million in Series B funding led by Canapi Ventures. Existing investors Fin VC and TTV Capital also participated in the round. Neuro-ID will use the additional capital to accelerate its mission of unlocking conversion and optimizing fraud screening for digital organizations of all sizes.
Founded in 2014, Neuro-ID delivers real-time behavioral analytics solutions that combat online fraud, increase conversion rates, and improve customer experiences. Neuro-ID’s proprietary platform, Friction IndexⓇ, simplifies access to an organization’s behavioral data to reveal key insights into the intent and emotion behind each user interaction. By providing visibility into behavior, Neuro-ID detects genuine customers and isolates fraud in real time. As a result, customers can complete transactions with minimal friction, while risk teams are alerted to fraudulent behavior before a loss occurs. Neuro-ID helps ensure seamless digital customer experiences across a variety of industries and works with leading brands including Intuit, Square, Affirm, OppFi and Elephant Insurance amongst others.
Jack Alton, CEO of Neuro-ID, said:“Every company attempting to digitally onboard a new consumer, business or partner already has a valuable trove of behavioral data. However, capturing and interpreting how someone taps, types and swipes in real time has proven to be difficult for even the most sophisticated digital organizations. This powerful new view into our clients’ behavioral data has enabled them to systematically reduce unnecessary friction for their genuine customers, while adding a valuable new layer of defense to stop 1st and 3rd party fraud. The implications for improved conversion and the overall digital customer experience have been game changing.”
For every $1 of fraud, it costs financial services firms $3.64 in associated overhead. Successful fraud attempts in the COVID world have increased by 30%, according to LexisNexis. Meanwhile less than 10% of people that start a digital journey, finish it. Crucially, Neuro-ID tools have decreased fraud by 35% while increasing conversion by 200% by allowing businesses to remove high friction verification for their genuine customers.
Speaking on the announcement Logan Allin, Managing General Partner with Fin VC said: “Neuro-ID enables its clients to tap into the real-time behavior and intent of the person behind the screen. With the false decline problem currently 70X larger than the global fraud problem, this new dimension of visibility enables organizations to identify and convert genuine customers that had previously been declined or subjected to unnecessary friction.”
Mr. Alton continued, “These issues have created a huge market opportunity for Neuro-ID to help our clients see their best customers very early in the digital process. The additional capital from Walker and the team at Canapi provides the resources and deep domain expertise needed to fuel our growth in the years ahead.”
Walker Forehand, Partner at Canapi Ventures said, “Neuro-ID’s differentiated platform and unique value proposition put the company at the forefront of the rapidly expanding behavioral analytics space. With its strong customer traction and impressive growth, Neuro-ID has already proven its scalability and product-market fit. The company is well-positioned to take advantage of tailwinds created by the digitization of financial services and growth of e-commerce as companies look to better understand customer intent and behavior. We’re excited to deepen our partnership with the Neuro-ID team as they embark on their next leg of growth.
Neuro-ID has been on a strong growth trajectory, reflecting increasing demand for behavioral data in digital companies. Today’s milestone builds on the $7M Series A funding raised in December 2020 and follows an active year which saw the company grow clients and revenue by 4x.
Neuro-ID is pioneering the behavioral analytics space, providing a new standard for collecting, translating and actioning on the real-time behaviors of digital interactions. Through a body of patented technology, Neuro-ID developed the Friction Index™, leveraging over a decade of scientific research and discovery in Human-Computer Interaction (HCI) to measure both customer Intent and Experience. For companies, this real-time behavioral data is used during the digital onboarding process to segment genuine from fraudulent customers, enabling them to maximize conversion, reduce false positives and stop sophisticated fraud. Neuro-ID is committed to shaping the Digital Transformation in positive ways, by helping recapture critical human elements lost when business moved online. For more information, visit neuro-id.com.
Canapi Ventures is a venture capital firm investing in early to growth-stage fintech companies. Our partners have been at the forefront of financial services innovation as operators, investors, bankers, advisors, and regulators. Our venture capital model connects high-quality fintech companies to our extensive network of banks and strategic partners. Canapi Ventures is advised by CenterHarbor Advisors and Canapi Advisors, LLC, a wholly owned subsidiary of Live Oak Bancshares, Inc. (Nasdaq: LOB). For more information, visit http://www.canapi.com.