The company’s technology tracks user behavior on websites to determine if a customer is real or a fraudster, according to a statement. Its technology is now used by more than 40 of the largest global financial institutions, the company said.
That top tier client list is likely one reason why the company was able to attract the Bain Capital Tech Opportunities investment team as the lead for its latest round. The growth investing business of the multi-billion dollar private equity firm Bain Capital joined previous investors American Express Ventures, Maverick Ventures, and the Israeli crowd-funding investor, OurCrowd in backing the company.
BIoCatch will use its newfound hoard of cash on research and development and sales and marketing to enter new verticals beyond the financial services world.
The investment will accelerate BioCatch’s rapid growth, broaden its product offerings and further support its expanding client base into new verticals.
“BioCatch’s growth in annual recurring revenue and client base speaks directly to the growing demand for our service and the increasing number of use cases we are able to support,” said Howard Edelstein, the company’s chief executive officer, in a statement. “The current environment has spawned a large increase in bad actors seeking to take advantage of distracted individuals working from home or dispersed companies whose technologists are scattered in remote locations. In such times, technologies like behavioral biometrics become more important than ever.”
Since launching to service the financial services sector, the company has already expanded its footprint in fraud detection and prevention to other verticals — including eCommerce. BioCatch intends to introduce new software for public sector offerings in 2020, the company said.
The company claims its tech can identify the creation of fake accounts or stolen identities at onboarding, recognize account takeovers, and flag social engineering scams using voice recordings.
For Bain, the investment in BioCatch extends the firm’s long history of fintech and cybersecurity deals including investments in Blue Coat, acquired by NortonLifeLock; InAuth, acquired by American Express; and WorldPay, which was snatched up by FIS .
“BioCatch has quickly established itself as a pioneer in the digital identity space by developing next-generation behavioral biometrics technology that integrates fraud detection and authentication capabilities to protect end-users and their most sensitive transactions. Their technology is highly applicable to other verticals beyond financial services that have the same need to balance fraud and the user experience,” said Dewey Awad, a Managing Director at Bain Capital Tech Opportunities.