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New Funding Helps Featurespace Fight Fraud in Financial Services

Fraud detection and risk management specialist Featurespace has raised $32.3 million (£25 million) in a round led by Insight Venture Partners and MissionOG. With participation from existing investors IP Group, Highland Europe, TTV Capital, Robert Sansom, and Invoke Capital, the investment takes Featurespace’s total funding north of the $71 million mark.

“We have made tremendous progress over the last 15 months since our last fundraising,” Featurespace CEO Martina King said, “and this fund raise is the largest to date.” King added that the new capital will be used to help fuel the company’s international expansion via a focus on “products, people, and customers.”

“We have also grown our financial services customer base and now are working with 17 banks across continental Europe, the U.K., the U.S., and Latin America,” King said. She noted that Featurespace had also become the “technology partner of choice” for many payment processors and merchant acquirers who have made Featurespace’s technology a part of their own fraud prevention efforts.

Based in Cambridge, U.K., with offices in London and Atlanta, Georgia, Featurespace demonstrated its ARIC Fraud Manager at FinovateFall 2016. The technology leverages behavioral analytics, anomaly detection, and machine learning to understand behavior and identify risk more accurately in real-time. Compared to traditional, rule-based anti-fraud solutions, Featurespace’s ARIC provides better fraud detection without increasing the incidence of false positives.

The company is off to a big start in 2019. Recognized by the Technology Association of Georgia (TAG) in its list of the 40 most innovative companies in the state, Featurespace partnered with business consultancy everis earlier this month. The company also announced that international bookmaker and gaming operator SKS365 would use its technology to provide real-time fraud protection.

Last fall, Featurespace teamed up with new U.K. clearing bank, ClearBank; partnered with Danske Bank, the largest bank in Denmark; and released a white label version of its ARIC fraud and risk technology. Founded in 2005, Featurespace is a member of the Inc. 5000 Europe.