Riskified has announced the closing of a $1.65 million round of seed funding from Genesis Capital Partners, Formation 8, Founder Collective, Entree Capital, The Accelerator Group and T5 Capital. Riskified has developed a platform that increases sales for e-commerce companies by verifying, approving and guaranteeing high risk transactions. The proceeds will be used to accelerate growth and develop Riskified's unique approach to risk management.
Riskified says that merchants refuse 5% of online orders due to fraud concerns when 80% of these declined transactions are legitimate. Consequently, billions in e-commerce purchases go unprocessed due to being flagged as fraudulent. Riskified's proprietary technology enables online retailers to capture revenue from these declined transactions.
Riskified employs modeling and detection technologies to review, approve and guarantee high-risk purchase transaction requests. Merchants determine which transactions to submit to Riskified and only pay for the transactions approved by Riskified. All approved transactions carry a 100% money back guarantee in the event of fraud. The result for Riskified's clients is fewer declined transactions, more sales and more satisfied customers.
Riskified was founded in 2012 by Eido Gal and Assaf Feldman and employs a team of fraud specialists and engineers from the private sector and the security and intelligence divisions of the IDF. Gal previously built risk models for FraudSciences, PayPal and BillGuard. Feldman formerly developed algo trading systems and crowdsourcing engines.
Gal said, "Current risk management is broken because the business incentive of the fraud services provider is not aligned with the merchant's incentive to sell more. Instead, we've built a complete platform capable of discerning legitimate transactions from fraudulent ones, with zero risk to the merchant, lending them more opportunities to dramatically increase sales."
Published by Globes [online], Israel business news - www.globes-online.com - on July 10, 2013
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