TEL AVIV, ISRAEL--(Marketwired - Jul 9, 2013) - Riskified (www.riskified.com) today announced it closed $1.65M in seed funding from international investors Genesis Capital Partners, Formation 8, Founder Collective, Entree Capital, The Accelerator Group and T5 Capital. Riskified offers the first risk enablement platform that increases sales for e-commerce companies by verifying, approving and guaranteeing high risk transactions. The round will facilitate the company's growth and development of its unique approach to risk management.
Currently, merchants decline five percent of all orders submitted online due to fear of fraud when in fact, 80 percent of these declined transactions are legitimate. As a result, 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 is fewer declined transactions, more sales and more satisfied customers.
"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," said Eido Gal, co-founder, Riskified. "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."
Co-Founded in 2012 by Eido Gal and Assaf Feldman, Riskified's team consists of elite fraud specialists and engineers from the private sector and the security and intelligence divisions of the Israeli Defense Forces. Gal previously built risk models for FraudSciences, PayPal and BillGuard. Feldman formerly developed algo trading systems and crowdsourcing engines, he holds an MSA from the MIT Media Lab.
"The Riskified founders are exceptional professionals with vast experience in this growing space," said Dr. Eyal Kishon, managing partner at Genesis Partners. "I truly believe that this addition to our portfolio will be extremely successful and am confident in their continued growth and the benefits they bring to etailers worldwide."
Riskified offers the first risk enablement platform that increases sales for e-commerce companies by verifying, approving and guaranteeing high risk transactions. Retailers determine which transactions to review and pay only when a transaction is approved. All approved transactions carry a 100% money back guarantee. Its proprietary technology enables online retailers to capture billions in what would otherwise be lost revenue each year.
For more information visit: www.riskified.com / https://twitter.com/Riskified