Total amount raised
$156.5 Millions
Latest funding date
2/1/2022
Location
Sift has successfully raised significant funding across multiple rounds, attracting a diverse group of investors. The company specializes in AI-powered fraud prevention, offering solutions that enhance digital trust and security.
Keep reading to explore the intricacies of Sift's fundraising journey and the investors backing this innovative platform.
What Is Sift?
Sift, founded on June 1, 2011, is headquartered in San Francisco, California. The company was established by Brandon Ballinger and Jason Tan.
Sift specializes in AI-powered fraud prevention, helping businesses secure customer journeys and create revenue from risk. Their platform uses insights from a global network of data to detect fraud and enhance user experience.
With a team of 251-500 employees, Sift is dedicated to building long-term partnerships with its customers, ensuring trust and safety in every online interaction.
How Much Funding Has Sift Raised?
- Seed Round
- Amount Raised: $1.5M
- Date: September 2011
- Lead Investors: Max Levchin
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial product and build the core team.
- Series A
- Amount Raised: $4M
- Date: March 2013
- Lead Investors: Union Square Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the product offering and enter new markets.
- Series B
- Amount Raised: $18M
- Date: May 2014
- Lead Investors: Spark Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance the fraud detection capabilities.
- Series C
- Amount Raised: $30M
- Date: July 2016
- Lead Investors: Insight Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and invest in advanced AI technologies.
- Series D
- Amount Raised: $53M
- Date: March 2018
- Lead Investors: Stripes
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand globally and enhance the platform's capabilities.
- Venture Round
- Amount Raised: Not publicly disclosed
- Date: January 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing product development and market expansion.
- Series E
- Amount Raised: $50M
- Date: April 2021
- Lead Investors: Insight Partners
- Valuation at Round: Over $1 billion
- Motivation Behind the Round: To expand the product portfolio and scale the team globally.
- Secondary Market
- Amount Raised: Not publicly disclosed
- Date: February 2022
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to early investors and employees.
Total Amount Raised: $156.5M
Current Valuation: Over $1 billion
Key Investors
- Insight Partners
- Details: Insight Partners is a global venture capital and private equity firm founded in 1995. They have invested in over 400 companies and raised more than $30 billion in capital commitments.
- Investment Focus Areas: Technology, software, internet, data services.
- Notable Investments: Twitter, Shopify, Qualtrics.
- Union Square Ventures
- Details: Union Square Ventures is a venture capital firm that invests in internet services and mobile internet services. Founded in 2003, they focus on early-stage, growth-stage, and later-stage investments.
- Investment Focus Areas: Internet services, mobile internet, software.
- Notable Investments: Twitter, Etsy, Coinbase.
- Stripes
- Details: Stripes is a growth equity firm that invests in software and consumer businesses. Founded in 2008, they partner with market-defining companies to accelerate their growth.
- Investment Focus Areas: Software, consumer products, internet services.
- Notable Investments: Monday.com, Reformation, Udemy.
- Spark Capital
- Details: Spark Capital is a venture capital firm that invests in startups across various stages. They focus on early-stage investments and have a strong presence in the technology sector.
- Investment Focus Areas: Technology, media, consumer products.
- Notable Investments: Twitter, Oculus, Slack.
- Max Levchin
- Details: Max Levchin is a serial entrepreneur and investor, known for co-founding PayPal. He has a keen interest in technology and financial services.
- Investment Focus Areas: Fintech, technology, startups.
- Notable Investments: Affirm, Yelp, Glow.
What's Next for Sift?
Sift stands at the cusp of significant growth opportunities, driven by the increasing sophistication of the Fraud Economy. With $50 million in new funding and a valuation exceeding $1 billion, the company is poised to expand its product portfolio and scale its global operations. The demand for advanced fraud prevention technologies is rising, and Sift's AI-driven solutions are well-positioned to meet this need, processing over $250 billion in transactions in 2020 alone.
Future fundraising opportunities appear promising, with potential for additional investment rounds to further enhance their platform and global reach. The appointment of Eu-Gene Sung as CFO hints at a possible IPO, while mergers and acquisitions could also be on the horizon to bolster their capabilities. However, Sift will need to navigate challenges such as evolving fraud tactics and maintaining a seamless customer experience as they scale.
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