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Signifyd Raises $20 Million in Series B Led by Menlo Ventures

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Along with participation from Allegis Capital, IA Ventures, QED Investors, and individual investors, Bill McKlernan and Tim Eades, anti-fraud specialist Signifyd has raised $20 million in a Series B round led by Menlo Ventures.

“We’re saving our customers millions of dollars in revenue, and merchants of all sizes are taking note,” Signifyd’s CEO and co-founder Rajesh Ramanand said in a statement about the funding. He pointed out that the Series B round is coming only seven months after the company’s successful Series A round as evidence of the company’s growing traction, adding, “We believe the technology we’re applying to e-commerce is the technical foundation for the next generation of insurance products.”

The funding takes Signifyd’s total capital to $31 million.

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Rajesh Ramanand, Signifyd co-founder and CEO, demonstrated his company’s Guaranteed Payments solution at FinovateSpring 2013 in San Francisco.

Signifyd will use the new funding to drive growth, scale infrastructure, and “continue to expand its team of world-class fraud experts.”

Signifyd helps e-commerce merchants fight fraud with a tool called the Social Graph. The Social Graph helps merchants determine whether or not the person behind an online transaction is who they say they are. The technology provides merchants with a clear “Accept/Decline” determination on the online customer’s identity, and Signifyd agrees to accept any liability in the event that an “Accepted” transaction is discovered ultimately to be fraudulent. Signifyd calls it “insurance for e-commerce.”

The funding news comes just days after Signifyd announced that it was extending its integration with Shopify Plus. Earlier this month, the company was honored as a finalist in the 2016 BIG Innovation Awards sponsored by the Business Intelligence Group.

Founded in 2011 and headquartered in Palo Alto, California, Signifyd made its Finovate debut at our spring conference in 2013.