Investment Announcement

Neuro-ID – Why We Invested

What is the one issue that keeps the entire company, particularly CSOs, CROs, CEOs, CFOs, and Board Members up at night? Fraud. According to a recent study by Lexis Nexis, not only does financial fraud drive lost dollars outright but an average of $3.64 in related costs per dollar of losses spent on investigation, insurance, audit, and legal costs – talk about adding insult to injury. As a result, companies are investing heavily into Regulatory Technology (“RegTech”), Fraud, and Cyber solutions to combat these challenges, representing an annual revenue spend by financial institutions of $30B+ across the tech stack. At Fin VC, our thesis around RegTech and related solutions is that FinTechs at all stages, incumbent Financial Institutions, Insurers, and increasingly Corporates embedding financial products, is that these providers must solve regulatory, compliance, and financial fraud issues in an automated and scalable way. In parallel, RegTech shouldn’t drive undue cost, operational overhead and customer/channel friction. Additionally, from our experience as entrepreneurs and product marketers, customer “funnel friction” has always been a key area of focus in optimizing conversion and ensuring a smooth onboarding process. These two drivers of combating fraud and reducing friction, are what led us to find Neuro-ID and deciding to co-lead the company’s Series A alongside of TTV Capital. In addition to TTV, we are pleased to have Canapi Ventures join the round, making up the “FinTech trifecta” and a true dream team to collaborate with in supporting Neuro-ID and its growing customer base.

Founded by PhD’s Joe Valacich and Jeff Jenkins at the University of Arizona and led by seasoned CEO, Jack Alton, Neuro-ID provides behavioral analytics to enhance: 1) Fraud detection, 2) Verification strategy, and 3) Funnel conversion. Neuro-ID’s Human Analytics™ capture and translate the digital body language of customers into actionable intelligence by measuring both customer Intent and Experience. For companies, this real-time behavioral data is used during the digital onboarding process to segment genuine from fraudulent customers, and therefore enabling them to maximize conversion, reduce false positives, and stop sophisticated fraud.

The company counts some of the leading lenders, payments providers, and insurers as customers with incredible growth, pipeline, and TAM expansion. Indeed, see Neuro-ID’s technology being applied with any interaction that has a web form – desktop, tablet, and mobile – with deep applications for the Financial Services and Insurance industries, as well as broad application in eCommerce, digital health, and government use cases. We are thrilled to work with our fellow investors, the board, and team at Neuro-ID to humanize fraud and friction to reduce cost while improving customer experience, the holy grail in optimizing digital interactions.


Business Insider: Here’s the 11-slide pitch deck a startup that analyzes consumers’ digital behavior to fight fraud used to raise a $7 million Series A

Fortune: Term Sheet by Lucinda Shen

Crunchbase News: The Briefing: Calm Hits $2B Valuation With New Round, Dragos Lands $110M, And More

Fintech Times: This Week in Fintech: TFT Bi-Weekly News Roundup 08/12