DUBLIN--(BUSINESS WIRE)--Irish startup Trustev has announced the closing of a $3 million seed funding round to finance the further development of its groundbreaking e-commerce security and online fraud protection technology. Participants include US venture capital fund Greycroft Partners, Mangrove Capital Partners, ACT Venture Capital, Telefónica’s Wayra, and Enterprise Ireland.
Since launching at TechCrunch Disrupt in New York City in May, 35 e-commerce companies around the world are now using Trustev’s anti-fraud solution to verify customers’ identities on their websites. The company also won the European Commission’s Tech All-Star Award, the result of an EU-wide search to find the best young technology startup in Europe. The $3 million seed round will finance Trustev’s accelerated expansion to the US, where the company will soon open an office in New York City, as well as the further development of Trustev’s anti-fraud and payment protection solutions for e-commerce.
“We’re thrilled to have such a strong pedigree of investors who believe in our technology and its proven ability to fight e-commerce fraud,” said Trustev co-founder and CEO Pat Phelan. “In addition to saving tens of millions of dollars through robust fraud prevention, Trustev also helps online merchants increase overseas opportunities by removing the danger of selling across international borders. Our focus is on pushing the complexity of fraud into the background, allowing online retailers to concentrate on servicing their honest customers while we identify and eliminate the troublemakers.”
According to research by eMarketer, global e-commerce sales are expected to reach nearly $1.3 trillion in 2013, making online fraud prevention an urgent and important requirement for every merchant. Trustev addresses this using multiple dynamic data sources to independently verify a user’s identity on e-commerce sites. This guarantees online merchants that they are dealing with actual customers, not fraudsters. Trustev’s passive authentication technologies work in the background, confirming and securing the transaction, while their active authentication technologies work to confirm the user’s identity before the purchase is complete.
"Trustev is solving the three biggest issues that stand in the way of the e-commerce industry's growth: limiting manual review of card-not-present transactions, bringing online fraud rates down to the equivalent of other channels, and empowering retailers to accept international payments," said Ian Sigalow, Partner and Co-Founder at Greycroft Partners. "We expect e-commerce to reach parity with physical retail sales over the next two decades – that is a trillion dollar shift in consumer behavior in the US, and much more globally – and Trustev is an essential part of this growth."
Announcing the funding on-stage at the Web Summit in Dublin, Phelan further disclosed that by the end of 2013, Trustev will be processing 10 million transactions per week for e-commerce companies.
Founded in Cork, Ireland in 2012, Trustev verifies the identity of online shoppers and fights fraud for e-commerce merchants. Trustev’s award-winning solution addresses multi-billion dollar online fraud losses from businesses around the globe, empowering retailers to do business in new markets and accept international payments. In 2013, the European Commission selected Trustev as the winner of the Tech All Stars award, naming them the top technology startup in Europe.
ABOUT GREYCROFT PARTNERS
Greycroft Partners is a leading early stage venture capital firm focused on investments in digital media. With offices in the two media capitals of the world - New York and Los Angeles – Greycroft is uniquely positioned to serve entrepreneurs who have chosen us as their partners. Greycroft leverages an extensive network of media and technology industry connections to help entrepreneurs gain visibility, build strategic relationships, successfully bring their products to market, and build successful businesses. Greycroft manages $400MM and has made over 90 investments in leading companies including Babble, Buddy Media, Collective, Huffington Post, Klout, M5 Networks, Maker Studios, Paid Content, Pulse, and Trunk Club. For more information please visit the Greycroft Partners website at www.greycroft.com.
ABOUT MANGROVE CAPITAL PARTNERS
Mangrove Capital Partners (www.mangrove.vc) is a leading early stage venture capital firm that works with the region’s top entrepreneurial talent at the earliest stages of innovation. The firm has co-created projects and regularly injects funds prior to product launch, often in unproven, unusual or unfavoured technologies. With $500 million under management, Mangrove has the capacity to support its portfolio through multiple rounds of financing and is the largest shareholder in many of its best performing companies. Founded in 2000, Mangrove has invested in more than 70 companies and was the first investor in Skype, which was acquired by eBay for over €3.1 billion in 2005. Mangrove has consistently featured among the top performing venture capital funds in the industry and has fuelled the creation of significant long-term value.
ABOUT ACT VENTURE CAPITAL
ACT Venture Capital are Ireland’s leading venture capital company; making investments in world class entrepreneurial and innovative companies. As well as backing startup and early stage businesses, they also invest in more established companies looking to use venture capital to build scale. To date they have raised over €370m from across multiple funds, from blue chip financial institutions, and invested in over 95 Companies.
Telefónica is one of the world leading integrated operators in the telecommunication sector, providing communication, information and entertainment solutions, with presences in Europe and Latin America. It operates in 24 countries with over 320m customers. Through Wayra, Telefónica’s global startup accelerator, the company has invested in over 300 startups in the two years since Wayra’s formation, which are based at its network of 14 global entrepreneur hubs.
ABOUT ENTERPRISE IRELAND
Enterprise Ireland is the government organisation responsible for the development and growth of Irish enterprises in world markets. They work in partnership with Irish enterprises to help them start, grow, innovate and win export sales on global markets. They are the largest seed capital investor in Ireland and invest directly in start-up companies, while also being limited partners in many of the Irish-based seed and venture capital funds. Enterprise Ireland invests in approximately 95 new High Potential Start-Up companies each year and manages a portfolio of over 800 investments in client companies.