Cybersecurity remains a top priority for companies both big and small—and for good reason. Data from nonprofit Identity Theft Resource Center found that the number of reported data breaches rose 17 percent to 1,473 in 2019 from 1,257 a year earlier. There was also a 41 percent spike in ransomware attacks last year, with companies paying an average of $84,116 in the last quarter to get their files back from hackers.
One company working to stop cyber criminals is BioCatch. Founded in 2011, the company uses behavioral biometrics to prevent cyberattacks, collecting and analyzing more than 2,000 parameters to identify malware, robotic activity, social engineering (such as phishing) and other cyberthreats. The company currently monitors more than 5 billion transactions per month. Last year, it added several new products to its platform —including a Policy Manager, Case Manager, new behavioral and threat indicators —designed to make it easier for companies to harness the power of behavior.
In 2019, BioCatch saw a 150 percent boost in its annual recurring revenues and currently has more than 40 of the world’s largest global financial institutions as customers. It signed its first eCommerce client in 2019 and is planning to launch in the public sector this year.
The company also plans to expand its product offerings and offer more support to its existing client base with the completion of a $145 million Series C investment led by Bain Capital Tech Opportunities, the growth investing business of Bain Capital. Industry Ventures, as well as existing shareholders American Express Ventures, CreditEase, Maverick Ventures and OurCrowd, among others, also participated in the round.
BioCatch’s last raise was in 2018 when it closed a $30 million funding round led by Maverick Ventures with additional participation from American Express Ventures, NexStar Partners, Kreos Capital, CreditEase, OurCrowd, JANVEST Capital and other previous investors.
“The current environment has spawned a large increase in bad actors seeking to take advantage of distracted individuals working from home or dispersed companies whose technologists are scattered in remote locations,” said Howard Edelstein, BioCatch Chairman and CEO. “In such times, technologies like behavioral biometrics become more important than ever.”