ThetaRay collects $30m to fight financial crime

ThetaRay, which uses AI and big data to prevent financial crime, has completed a fund-raising round of over $30m.

The new round was significantly oversubscribed and included participation from Jerusalem Venture Partners (JVP), GE, Bank Hapoalim, OurCrowd, and SVB Investments, among others. It brings the company’s total fundraising to over $60m.

Headquartered in Hod HaSharon, Israel, ThetaRay said it will use the capital to expand its presence in Europe, Asia and the US, significantly increase its workforce and scale operations to meet the growing demand for systems that fight financial crime and money laundering.

Mark Gazit, CEO of ThetaRay, said: “In this era when criminal activity and money laundering are increasing and becoming more sophisticated and also regulation is on the rise, there is a greater demand for our solutions.”

ThetaRay uses machine learning and artificial intelligence technology to help financial institutions identify the signs of money laundering. It can detect anomalies in real-time, radically reduce false positives, and uncover “unknown unknowns”.

The company’s solutions enable clients to manage risk, detect money laundering schemes, uncover fraud, expose bad loans, uncover operational issues and reveal valuable new growth opportunities.

“Financial crime, money laundering, fraud and advanced integrated cyber-attacks on financial institutions pose a growing systemic risk that has already put banks out of business,” added Yoav Tzruya, general partner at JVP.

“Existing systems fall short of addressing the agility and innovation of rogue organizations, fraudsters and hackers. ThetaRay is uniquely positioned to address this significant market pain, through its no-rules, holistic, AI-driven solution to identify such events, while significantly reducing the operating cost for banks.”

Earlier this year ,ABN AMRO Bank picked ThetaRay’s machine learning solution to improve post-transaction monitoring and detect financial crime. The Northwest European Bank said the solution will improve the effectiveness and efficiency of post-transaction monitoring in controlling money laundering and terrorist financing risks.

Jerusalem Venture Partners recently took part in Morphisec’s $12m Series B round. The company’s patented Moving Target Defense innovation is the foundation of its Endpoint Threat Prevention solution, which ‘quickly and simply’ prevents advanced threats for customers.

Copyright © 2018 RegTech Analyst

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