Advanced cyber security solution provider ThetaRay has raised $30+ million in funding courtesy of investors including Jerusalem Venture Partners (JVP), GE, Bank Hapoalim, OurCrowd, and SVB. The investment takes the company’s total equity capital to more than $60 million.
“In this era when criminal activity and money laundering are increasing and becoming more sophisticated and also regulation is on the rise, there is a greater demand for our solutions,” ThetaRay CEO Mark Gazit explained. “As the amount of digital information grows, you just can’t protect it without artificial intelligence systems. ThetaRay offers the most advanced and mature solutions to detect threats before they happen. We thank the existing investors, especially JVP, for their confidence in ThetaRay, and welcome the new ones joining in this round.”
ThetaRay, which has doubled in size every year in its five years of operation, will use the new funding to grow its presence in Europe, Asia, and the U.S., and “significantly increase” its workforce to scale operations to meet growing demand. Founded in 2013, the company is headquartered in Israel and New York City, and has offices in the U.K. and Singapore.
Combining machine learning, artificial intelligence, and “the wisdom of the algorithm crowd,” ThetaRay enables financial institutions to detect in real-time the kind of anomalies that typically indicate fraud, while reducing the number of false positives. The company provides financial services companies with anti-money laundering, fraud detection, and ATM solutions that leverage unsupervised machine learning instead of outdated rule-based systems and pre-defined thresholds.
“Existing systems fall short of addressing the agility and innovation of rogue organizations, fraudsters and hackers,” JVP General Partner Yoav Tzruya said. “ThetaRay is uniquely positioned to address this significant market pain, through its no-rules, holistic, AI-driven solution to identify such events, while significantly reducing the operating cost for banks.” Tzruya is also a founding investor in ThetaRay.
ThetaRay demonstrated its fraud and credit risk technology at FinovateFall 2015. Last month, the company announced that it was teaming up with ABN AMRO in a five-year project to improve the AML and counter-terrorist financing capabilities of the Dutch bank. Also in June, ThetaRay was honored with the Next Generation ATM Security Award from ATMIA.
In addition to financial services, ThetaRay’s anomaly detection technology has also been deployed in Industrial Internet of Things (Industrial IoT) contexts to help protect critical assets such as turbines, sensors, aircraft engines, and more.