Forter has successfully raised $100 million over four funding rounds, achieving a valuation of over $1 billion. The platform offers advanced fraud detection and identity intelligence solutions for digital commerce.
Keep reading to explore the intricacies of Forter's fundraising journey and the investors backing this innovative platform.
What Is Forter?
Forter, founded by Michael Reitblat, Liron Damri, and Alon Shemesh, is a company specializing in identity intelligence for digital commerce. Established in New York City, Forter has expanded its presence to locations like Singapore and San Francisco.
The company focuses on growing revenue and protecting businesses at every stage of the customer journey. It combines advanced cyber intelligence, identity analysis, and behavioral data to create a multi-layered fraud detection mechanism.
With a team of 51-200 employees, Forter provides a fully automated fraud detection technology that can approve or deny transactions in real-time, backed by a 100% chargeback protection program.
How Much Funding Has Forter Raised?
- Series A
- Amount Raised: $3,000,000
- Date: March 2014
- Lead Investors: Sequoia Capital
- Motivation Behind the Round: To support the growth and development of Forter's real-time anti-ecommerce fraud solution and to address the increasing complexity and growth of ecommerce fraud.
- Series B
- Amount Raised: $15,000,000
- Date: November 2014
- Lead Investors: New Enterprise Associates (NEA), Sequoia Capital
- Motivation Behind the Round: To enhance Forter's automated decision engine for online merchants, improving their ability to detect and prevent fraud in online transactions.
- Series C
- Amount Raised: $32,000,000
- Date: April 2016
- Lead Investors: Scale Venture Partners
- Motivation Behind the Round: To invest in Forter's mission of eliminating e-commerce fraud and helping retailers capture more sales amidst increasing fraud attacks.
- Series D
- Amount Raised: $50,000,000
- Date: September 2018
- Lead Investors: March Capital Partners
- Motivation Behind the Round: To further expand Forter's fraud detection capabilities and support its global growth strategy.
Forter has raised a total of $100,000,000 in funding, with a current valuation of $1 billion.
Key Investors
- Sequoia Capital
- Details: Sequoia Capital is a venture capital firm based in Menlo Park, California, known for investing in high-growth technology companies. They have a notable track record, having invested in companies like Google, Apple, and WhatsApp.
- Investment Focus Areas: Technology, Healthcare, Consumer Services
- Notable Investments: Google, Apple, WhatsApp
- New Enterprise Associates (NEA)
- Details: NEA is a global venture capital firm that invests in technology and healthcare companies at all stages of growth. They have a strong presence in both the U.S. and international markets.
- Investment Focus Areas: Technology, Healthcare
- Notable Investments: Uber, Coursera, Robinhood
- Scale Venture Partners
- Details: Scale Venture Partners is a venture capital firm that invests in early-in-revenue technology companies. They focus on companies that are scaling their operations and have a proven business model.
- Investment Focus Areas: Technology, SaaS, Cloud Computing
- Notable Investments: Box, DocuSign, HubSpot
- March Capital Partners
- Details: March Capital Partners is a venture capital firm that invests in innovative technology companies. They focus on companies that are transforming industries and have the potential for significant growth.
- Investment Focus Areas: Technology, FinTech, Cybersecurity
- Notable Investments: CrowdStrike, SparkCognition, ASAPP
- Ribbit Capital
- Details: Ribbit Capital is a venture capital firm that focuses on financial technology companies. They aim to invest in companies that are redefining the financial services industry.
- Investment Focus Areas: FinTech, Cryptocurrency, InsurTech
- Notable Investments: Coinbase, Robinhood, Credit Karma
What's Next for Forter?
Forter stands at the cusp of significant growth opportunities, driven by the increasing complexity of e-commerce fraud and the expanding online retail market. With the e-commerce sector growing at 15% year-over-year, Forter can enhance its fraud prevention services and Decision as a Service algorithms to capture a larger market share. Potential partnerships with credit card companies and financial institutions could further solidify its position in the industry.
Future fundraising opportunities appear promising as the demand for robust fraud prevention solutions continues to rise. Forter may attract additional investments to scale its operations and technology, potentially leading to strategic partnerships or acquisitions. However, the company must navigate challenges such as evolving fraud tactics, competition, and maintaining the accuracy of its detection algorithms while ensuring a seamless customer experience.
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