FeedZai’s new Fraud Prevention software protects over $85B in electronic payments per year for Global 2000 customers.
REDWOOD CITY, California – February 19, 2013
- New Big Data Driven Market Leader in Risk Analytics
FeedZai, the leader in next generation fraud prevention software that protects electronic transactions, today announced that it achieved its first year of profitability, a mere 18 months after first product availability. The Company credits its rapid success to its early focus on big data analytics applications, unlike other big data start-ups that sell big data tools and platform technology and have yet to approach break-even.
- FeedZai Software Outperforms Competitors
Because FeedZai leverages modern in-memory data processing techniques that are different than older fraud prevention software solutions, FeedZai software detects 3 times more fraud at the same level of false positives. This means that FeedZai customers spend 4.5 times less on labor costs to review false positives, a key efficiency metric for fraud and risk departments. Finally, in contrast to the traditional approach of updating analytic models every 6 months, FeedZai’s unique machine learning technology – combined with its sub-second analytics engine – allows companies to block new fraud efforts on the first attempt.
- New US Expansion and US Investors
FeedZai, headquartered in Coimbra, Portugal, launched FeedZai North America in Redwood City, California, as a wholly owned business to spearhead FeedZai’s expansion into North America. Nuno Sebastiao, CEO of FeedZai, has relocated from Portugal to the United States to build his US team with new hires across all functions of the business.FeedZai also added two new US investors, SAP Ventures and Data Collective, as part of a $2.4M investment. These funds add to an initial May 2011 investment round of $1.9M from leading European investors, Novabase Capital, Espirito Santo Ventures and EDP Ventures.
“FeedZai’s founders and development team are world class,” stated Matt Ocko, Managing General Partner at Data Collective. “With years of cutting edge research at the European Space Agency and other top European research institutions, they built a massive-scale risk analytics platform second to none. Because of this platform, their fraud prevention applications execute large scale, sub-second analytics that outperform today’s industry leaders by a wide margin.”
“FeedZai offers unique, proven fraud prevention capabilities to US financial institutions that want to protect new electronic payment scenarios, for example mobile payments,” stated Nuno Sebastiao, CEO of FeedZai. “And since fraud suppression is so key to the mobile payments market, FeedZai is well-positioned to grow with our customers capitalizing on this trend.”
I’m very happy to hear about the SAP Ventures investment in FeedZai from the HANA Real Time Fund,” said Dr. Vishal Sikka, member of the SAP Executive Board, Technology and Innovation. Not only does FeedZai’s Fraud prevention solution showcase the amazing capabilities of SAP HANA for powerful real-time analytics, their success highlights the opportunities for other young companies to build valuable businesses on the SAP HANA platform. The fact that FeedZai came to us through the SAP Startup Focus program makes me even more proud of the role the new SAP can play in enabling entrepreneurs with awesome ideas. Congratulations to FeedZai and my best wishes for their continued success.”
FeedZai creates software that uncovers and manages business anomalies. FeedZai Fraud Prevention software employs next generation big data analytics that delivers the industry’s best sub-second fraud blocking with the lowest percent false positives. Its machine learning capability instantly identifies new fraudster schemes to stop fraudulent transactions in the first occurrence without waiting for typical semi-annual analytic model updates. Gartner awarded FeedZai its Cool Vendor Award in recognition of the rapid commercial success of FeedZai’s big data solutions. Customers include Coca-Cola, Logica, Vodafone, Ericsson, SIBS Forward Payment Solutions, Horizon Wind Energy, and Servebase Credit Card Solutions. FeedZai North America is headquartered in Redwood City, CA. www.feedzai.com