RegTech 100 company BehavioSec, which uses behavioural biometrics to verify and confirm a user’s identity, has raised a $17.5m Series B investment.
Trident Capital Cybersecurity led the investment, with Cisco Investments and ABN AMRO also joining the round alongside existing investors Octopus Ventures and Conor Venture Partners. As part of the fundraise, Alberto Yepez and Ken Gonzalez of Trident Cybersecurity will join BehavioSec’s board of directors. Back in December 2014, BehavioSec landed €5m financing in funding from Octopus Ventures, Northzone and Conor Venture Partners.
Headquartered in Stockholm, Sweden, the company said it will use the new capital to expand global operations and relocate corporate headquarters to the United States. BehavioSec provides a behavioural analytics platform to prevent fraud or account takeover. It uses continuous machine learning to authenticate users based, not on what they do, but on how they do it. The company creates digital fingerprints of specific users by combining attributes such as keystroke cadence or finger pressure to create a clear picture of a user’s identity.
“Two-factor authentication isn’t enough given today’s cyber threat environment,” said Alberto Yépez of Trident Cybersecurity. “That’s why leaders in industry are moving toward a layered authentication approach to continuously and seamlessly monitor and secure trusted transactions and eliminate fake or malicious user sessions. We decided to invest in BehavioSec given production deployments authenticating user sessions for some of the most sophisticated financial institutions and governments around the world. In addition, the company continues to lead the innovation in behavioural biometrics through close partnership with leading cybersecurity vendors and government agencies, including DARPA.”
BehavioSec plans to launch new solutions for market introduction in early 2018. These solutions include enterprise authentication solutions, integrated decision intelligence for partner offerings. Its technology partners include fraud detection business Kount,mobile integration as a service provider Appdome, digital security company Gemalto, and biometric identity management and secure authentication solution Crossmatch, among others.
Trident Capital Cybersecurity is a $300m venture fund focused on investing in early stage and select growth equity cybersecurity companies. The firm’s current portfolio companies include 4iQ, Appthority, Attivo Networks, Bayshore Networks, ID Experts, IronNet Cybersecurity, Prevoty, and ReversingLabs.
Last year, BehavioSec was hand-picked by a panel of industry experts for the RegTech 100, a list of companies that every financial institution should know about in 2018. The RegTech 100 is part of the Global RegTech review – an essential, in-depth analysis of the global RegTech market.
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