Billguard, which tracks your credit card statements and flags suspicious purchases, announced today it has raised $10 million in its second round of funding.
Billguard users log into the site with the same info they would use for a bank website, such as Chase.com or Citibank.com. The company then scans your most recent transactions and flags transactions that look suspicious. It uses a number of internal tests and spiders the web for complaints about the company behind a charge.
Over time, the company’s internal engine becomes more sophisticated and learns how to track suspicious charges by finding patterns with certain companies.
The site tracks charges for both credit and debit cards, the company’s chief executive Yaron Samid said.
Billguard representatives said the company has found at least one bad charge on a credit card for around 20 per cent of its users. It’s saved $500,000 in refundable charges to date since launching at TechCrunch Disrupt New York in May earlier this year.
The second round of funding was led by Khosla Ventures, which recently raised a $1.05 billion fund. Early Facebook investor Peter Thiel’s Founders Fund also participated in the most recent round. Google chairman Eric Schmidt’s Innovation endeavours, Bessemer Venture Partners and IA Ventures finish off the second round of funding.
Billguard is based in New York, N.Y., and has raised $13 million to date. Its first round of funding closed in February earlier this year. Billguard was founded in April 2010 and also has offices based in Israel.