An up-and-coming behavioral biometrics specialist has raised $35 million in a recent funding round, and may be able to stoke further interest with an aspect of its solution that helps it to stand out.
Based in Montana, Neuro-ID offers a behavioral biometrics solution that analyzes patterns in how end users type and interact with their devices in order to spot the signs of fraud. In that respect, it’s similar to other solutions in segment of the biometrics space that has quietly been surging in popularity in recent years, especially in the financial services sector.
But Neuro-ID’s solution goes further than detecting potential fraud. As the company explained in a statement announcing the new funding, its solution is capable of using the behavioral data it collects “to reveal key insights into the intent and emotion behind each user interaction.” It does this through a proprietary “Friction Index” that is designed to help clients make sense of the behavioral data.
Speaking to VentureBeat, Neuro-ID CEO Jack Alton explained that the company’s aim is to not only fight fraud but also increase conversion rates for clients.
“Traditional behavioral analytics companies like NuData have used behavioral technology to do things like authenticate existing customers to prevent account takeovers by malicious actors,” he said. “Neuro-ID is focused on tackling a much larger ‘conversion crisis’ that all digital organizations face.”
Neuro-ID’s Series B funding round was led by Canapi Ventures and featured contributions from existing investors FinVC and TTV Capital.
Commenting on the investment, Canapi Ventures Partner Walker Forehand explained that “Neuro-ID’s differentiated platform and unique value proposition put the company at the forefront of the rapidly expanding behavioral analytics space,” adding later that it is “well-positioned to take advantage of tailwinds created by the digitization of financial services and growth of e-commerce as companies look to better understand customer intent and behavior.”
Neuro-ID previously raised $7 million in a Series A funding round, and says that it increased its revenues and client base fourfold over the past year.
(Originally posted on FindBiometrics)