Sequoia, one of the most reputable venture capital companies in the world, has backed an Israeli startup called Forter in a $32 million (£22 million) funding round that brings total investment in the business up to $50 million (£34 million).
Forter’s platform uses cyber intelligence combined with behavioural and identity analysis to help merchants spot fraudulent transactions. The system approves or declines payments and offers a 100% chargeback guarantee on any fraudulent transactions that it misses.
Michael Reitblat, CEO of Forter, told Business Insider that $200 billion (£139 billion) in goods sales are blocked or declined annually and an additional $70 billion (£96 billion) is lost to fraudsters. “Digital goods merchants simply have to have real-time fraud prevention,” he said.
Reitblat said the money raised through the Series C funding round will support product innovation and the company’s continued expansion across the US.
Sequoia makes the majority of its investments into US startups. It has built its reputation as one of the leading venture capital firms after backing the likes of Apple and Google in their early days.
Shmil Levy, a partner at Sequoia Capital Israel, said: “Sequoia invested in Forter to help the ecommerce industry by eliminating fraud. Forter is the first to introduce next generation solution by providing “fraud as a service ” based on unique technology that eliminate men in the loop. It increases revenue and improves user experience for merchants.”