Mar 26Market Leader ThreatMetrix Secures $18 Million in Series D Financing
ThreatMetrix™, the fastest-growing provider of integrated cybercrime prevention solutions in the world with 300% year-over-year growth, closed a Series D financing round. Leading the investment round of $18 million in capital is August Capital with existing investors Tenaya Capital, US Venture Partners and CM Capital full participants.
“The previously separate worlds of fraud [prevention] and security are converging and ThreatMetrix is ideally situated to help companies and government entities reduce fraud losses while preventing data breaches from stolen identities,” said Vivek Mehra, general partner, August Capital. “Our confidence in ThreatMetrix is demonstrated by their impressive track record of rapid customer adoption, new market expansion and global growth. With today’s financing announcement, we hope to further accelerate that growth.”
As part of the financing round, Mehra joins the ThreatMetrix board of directors. The partners of August Capital have invested in leading companies such as Atheros, Microsoft, Postini, Sun, Symantec, Seagate, Skype and Splunk.
“We’re extremely pleased to have August Capital, one of the preeminent Silicon Valley venture capital firms, lead this round,” said Reed Taussig, president and CEO, ThreatMetrix. “ThreatMetrix is expanding on all fronts including new products, applications, markets and geographies. Our customers are deploying ThreatMetrix solutions across the enterprise on a global basis. Our recent TrustDefender acquisition has provided ThreatMetrix with the only integrated solution combining intelligent device identification with malware man-in-the-browser (MitB) detection and remediation available in the market today. This combination of products has positioned ThreatMetrix as the leader for device centric fraud prevention and as a competitive vendor for the evolving market of remote employee authentication popularly referred to as ‘bring your own device’ (BYOD).”
Taussig explains that the company will use the additional funding to continue its global expansion into e-commerce, financial services and the enterprise remote employee access markets.
What’s ThreatMetrix’s success based on? Here are some highlights:
• Achieved Record Growth: ThreatMetrix recorded 300 percent growth year-over-year in 2011. The company protects more than 5,000 Web sites from some of the largest global brands profiling nearly 1 billion devices on a monthly basis.
• Completed Strategic Acquisition: In December 2011, ThreatMetrix completed the acquisition of TrustDefender™, a recognized leader of malware detection and prevention technologies. With the acquisition, ThreatMetrix is the first company to combine advanced device identification and malware detection in a single platform backed by a global network of shared intelligence.
• Acquired New Customers: ThreatMetrix grew its customer base in excess of 700 customers worldwide, both direct and through its reseller channel. Financial services customers – many of whom use ThreatMetrix solutions to meet FFIEC guidance for a layered security program that combines complex device identification and anti-malware controls – represent over 40 percent of ThreatMetrix’s installed base with e-commerce, social networks, government, and healthcare completing the mix.
• Released New Products: In January 2012, ThreatMetrix launched the ThreatMetrix™ Cybercrime Defender Platform – incorporating TrustDefender™ ID, TrustDefender™ Cloud, TrustDefender™ Client and TrustDefender™ Mobile – that enables the company to address fraud prevention and malware protection as a single problem, delivering real benefits to customers at a lower cost.
• Expanded International Presence: ThreatMetrix opened new sales and engineering offices in Australia and EMEA headquarters in the Netherlands. Nearly 40 percent of ThreatMetrix’s business is international with Europe leading the way. Additionally, ThreatMetrix operates a European data center to provide faster and more accurate fraud screening. It has also secured European Safe Harbor Certification that highlights ThreatMetrix’s ongoing commitment to protect the privacy of individuals in Europe, the U.S. and wherever the company conducts business around the globe.
• Expanded Use Cases: ThreatMetrix expanded its customer use case scenarios beyond account origination, account logins, and payments and transactions into the remote employee access market for major corporations. In an evolving BYOD world, enterprises can’t ignore the evolving threats of allowing unknown devices connecting into their corporate networks.
• Hired Strategic Leaders: ThreatMetrix made several strategic hires including Andreas Baumhof, CTO (formerly CEO of TrustDefender); Bert Rankin, vice president of marketing; Bruce Scott, vice president of worldwide engineering and Frank Teruel, CFO.
• Expanded Partner Ecosystem: ThreatMetrix expanded its partner ecosystem with TransUnion, a global leader in information and risk management, to help customers validate name, phone number and address information. ThreatMetrix also partnered with ActivIdentity™ Corporation to enable the ActivIdentity 4TRESS™ Authentication Appliance customers to connect with the ThreatMetrix Cybercrime Defender Platform to support secure authentication without the use of physical credentials such as smart cards or tokens.
• Secured Analyst Recognition: ThreatMetrix was positioned by Gartner in the “Visionaries” quadrant of the “Magic Quadrant for Web Fraud Detection;” a “strong performer” in “The Forrester Wave™: Risk-Based Authentication, Q1 2012” and was highlighted in Aite Group’s recent “Complex Device-Printing: A Front-Line Essential.”
• Secured Industry Recognition: ThreatMetrix was named to Gartner’s list of “Cool Vendors” in the Gartner “Cool Vendors in Context-Aware Computing, 20113” and received a Red Herring 100 Global and a Top 100 North America company award.
• Launched ThreatMetrix Labs: In February 2012, ThreatMetrix launched ThreatMetrix™ Labs, which generates in-depth reports on the latest capabilities of malware that target financial institutions, merchants and online businesses.
• Hosted Inaugural User Conference: ThreatMetrix held its inaugural 2011 ThreatMetrix™ Fraud Fighters Summit, October 9 – 10 in Monterey, California with more than 175 registrants.
• Enhanced Corporate Infrastructure: In late 2011, ThreatMetrix moved its worldwide headquarters to San Jose, California to accommodate the company’s growing workforce. Employee headcount grew 20 percent in 2011.