We are pleased to announce our recent Series A investment in Deduce, made alongside our partner fund, True Ventures. Deduce is a fraud prevention tool that helps its customers prevent user account takeover and new registration fraud. Most fraud prevention products rely on data solely from an individual customer’s web site. This approach is fine for massive enterprises with sprawling web presences, but there isn’t enough data in most small- and mid- size companies’ web sites to be meaningful. Deduce’s unique Identity Network uses data sensors on over 150,000 web sites serving hundreds of millions of daily users to create a massive, real-time authenticated user network, discerning real users from dangerous actors attempting to take over user accounts.
Identity fraud is a $30 billion per year problem, and the costs associated with managing account takeover alone are expected to triple over the next four years. Deduce’s products protect user accounts by identifying risk at account creation, authenticating users, and detecting fraudulent account changes, ultimately preventing the key source of purchase fraud and chargebacks. Their Alerts product prompts users to confirm that they initiated transactions associated with their accounts. Their new Insights product increases digital identity telemetry to provide an advance warning of fraudulent behavior before it affects a company’s customers. Deduce delivers this powerful capability utilizing its massive data network, which will only grow as they onboard new customers.
CEO, Ari Jacoby, aptly describes himself as having “a heritage in identity and cybersecurity,” and we couldn’t agree more. He and his CTO, Jeff Weisberg, worked together at VoiceStar (acquired by Marchex), Solve Media (acquired by Adiant), and Circulate (acquired by LiveRamp). They are joined by Robert Panasiuk, VP of Product, who is an alumnus of NuData Security and Mastercard. Together, this team has the API- and cybersecurity experience to deliver an exceptionally effective product to their customers.
Deduce falls into our Glue theme. We were introduced to them by Adam D’Augelli at True Ventures. We are thrilled to again partner with our good friends at True Ventures to back Ari and his team as they build enterprise- grade cybersecurity for businesses of all sizes.
You can read more about Deduce’s round and their new Insights product here.