Israel-based e-commerce fraud startup Forter has closed a $3m Series A funding round from global growth investor Sequoia Capital.
“We’re thrilled to announce our funding round with Sequoia,” said Michael Reitblat, CEO of Forter. “Sequoia’s track record in helping to bring tech companies to market is very impressive – just look at WhatsApp — and their investment in Forter underscores our technology and its potential.
The funding news comes one month after Forter’s launch. Behavioural data and cyber intelligence were practices the founders learned as intelligence officers in the Israeli Defense Force and developed at Fraud Sciences, which was acquired by – and integrated into – PayPal in 2008 for $169m. PayPal was also funded by Sequoia.
Sequoia notably invested in Google, Apple and, more recently, WhatsApp, which was sold to Facebook for $19bn.
“As ecommerce continues to grow and fraud evolves, our one-of-kind technology is in a unique position to become the fraud solution standard for online retailers – big and small, and in any industry. By offering the only real-time anti ecommerce fraud solution that fully backs its decision making process, we’re filling a major void in the industry – we make a decision for 100 per cent of the transactions so that merchants can focus on growing their businesses.”
According to eMarketer, an online retail analyst firm, ecommerce is growing at an astronomical pace – 15 percent, year-over-year. With the growth in ecommerce, fraud has become a larger and more complex issue, which is driven by international shoppers, new devices and consumers using privacy technology to hide their identity.
“We believe Forter has great potential to become a big company,” said Shmil Levy, Partner at Sequoia. “The company’s technology is innovative and the team is exceptional. There is no other technology in the ecommerce space that provides merchants with a solution that prevents their businesses from being hurt by fraud. We are proud to have Forter as part of our portfolio.”
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