Neuro-ID Secures Funding to Fight Digital Fraud

The Rise of Real-Time Behavioral Analytics

A significant portion of daily life now unfolds through digital interactions, leading businesses to prioritize conversion rate optimization and robust fraud detection. Consequently, demand is growing for solutions that provide deeper insights into user behavior.

Neuro-ID, a platform specializing in real-time customer behavior analytics for digital businesses, has announced a new funding round. The platform is designed to reveal customer intent and pinpoint the sources of digital friction.

Securing Series B Funding

Neuro-ID has secured $35 million in Series B funding. This investment builds upon the $7 million Series A funding raised in December 2020, bringing the company’s total raised capital to $49.5 million since its founding in 2014.

Canapi Ventures spearheaded the latest funding round, with participation from existing investors Fin VC and TTV Capital, who previously led the Series A round.

While the company’s valuation remains undisclosed, CEO Jack Alton communicated via email that it reflects “strong customer traction.”

Alton further stated that Neuro-ID is projected to experience a threefold to fourfold increase in both revenue and customer acquisition in 2021. This follows a period of substantial growth, with a 500% surge in monitored customer journeys alongside a similar threefold to fourfold expansion in both client numbers and revenue.

Key Clients and Benefits

Neuro-ID’s customer base includes prominent companies such as Intuit, Square, Affirm, OppFi, and Elephant Insurance. These organizations utilize Neuro-ID’s proprietary Human Analytics software to transform user interactions – including taps and swipes – into valuable, actionable intelligence.

The platform’s behavioral analytics also empowers clients to enhance their existing AI/ML models with behavioral data. According to the company, customers have, on average, seen a 200% increase in conversion rates and a 35% reduction in fraud.

Future Plans

Alton plans to allocate the new funding towards expanding the engineering team, accelerating product-led growth initiatives, and facilitating global expansion. The company has nearly tripled its workforce in the past year, now employing 60 individuals.

Industry Perspective

Walker Forehand, a partner at Canapi Ventures, highlighted Neuro-ID’s unique position as a comprehensive solution for understanding user intent and experience analytics. He emphasized the company’s differentiation through its focus on analyzing first-time customer behavior, unlike competitors who primarily concentrate on repeat interactions.

Forehand noted that seamless customer journeys are crucial for fintech companies and banks, where fewer than 10% of initiated digital processes are ultimately completed. He also pointed out that traditional fraud prevention methods rely on static attributes like address and date of birth, while Neuro-ID employs alternative techniques to verify customer authenticity.

“The ability to analyze customer behavior at scale unlocks opportunities to improve conversion rates, drive revenue by expediting the onboarding of legitimate customers, refine intent measurement, and enhance the quality of digital product design, all while mitigating fraud,” Forehand explained. “Importantly, Neuro-ID’s technology extends beyond fintech and banking; any industry reliant on high-volume digital and automated decision-making could benefit from its capabilities.”