Fraugster to leap into new markets following $14m Series B round

Anti-fraud software business Fraugster has raised $14m in a Series B investment round led by CommerzVentures.

The Commerzbank subsidiary was joined in the round by Earlybird, Speedinvest, Seedcamp, Rancilio Cube and Munich Re/HSB Ventures.

The Berlin-based business is expected to use the funding to continue its expansion in the US, Asia and Europe.

Fraugster’s software uses artificial intelligence to provide fraud prevention services to online retail companies. The company’s platform monitors millions of transactions and uses data from multiple sources which is analysed and cross-checked in a fraction of a second.

Fraugster’s clients include payment service businesses such as Ingenico ePayments and Six Payments. Back in 2016 the business secured $5m in a funding round led by Earlybird with participation from existing investors Speedinvest and Seedcamp, according to a TechCruch report.

“Fraud is a huge problem for e-commerce,” said, CommerzVentures managing partner Stefan Tirtey.

“Fraugster helps merchants to concentrate on selling, while reducing fraud and increasing conversion rates.”

CommerzVentures usually provide initial investments of between €2m to €10m in early- and growth-stage start-ups in the financial services sectors.

After launching in 2014, the firm has gone on to back a number of FinTech enterprises such as Etoro, Bankin’, Mambu and PayKey.

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