Israeli fintech startup EverCompliant raises $35M Series B funding to use AI to fight money laundering; rebrands as EverC
While global e-Commerce volume was already rising pre-COVID 19, the pandemic has accelerated the adoption of digital payments. With this rapid increase comes a simultaneous increase in criminal activities online. Recent high profile cases have only highlighted what has already become an unprecedented level of online money laundering.
EverC, formerly known as Evercompliant, is a Tel Aviv, Israel-based fintech startup that provides cyber intelligence that enables acquiring banks and payment service providers to manage merchant-based fraud and cyber risk. The startup company uses artificial intelligence to look into its client’s portfolios and identify links with potential criminals using its cyber intelligence capabilities.
According to EverC’s calculations, some $500 billion is laundered annually through fraudulent e-Commerce transactions. Furthermore, according to the company, there are 6 to 10 million online merchants that are currently using the payment system to process transactions without the knowledge or consent of the financial institution they are processing through.
Last week, EverC announced it raised a $35 million Series B funding round to meet growing demand from banks, credit card companies, payment processors, payment facilitators, online marketplaces, and law enforcement agencies. The round was led by Red Dot Capital Partners, an Israel-based early growth-stage venture capital firm, with participation from Maor Investments joined the round, as did the company’s existing backers including American Express Ventures.
In conjunction with the funding, the company also announced it has rebranded as EverC to better align its name with a broader mission to reduce online crime and empower e-Commerce growth by leveraging its intelligence capabilities.
Founded in 2008 by Ron Teicher, Noam Rabinovich, and Raz Abramov, EverC is a global provider of Online Data Intelligence to detect and prevent Online Money Laundering (Transaction Laundering). EverC provides a range of solutions that give acquirers and payment service providers with the necessary relevant information to check ongoing and newly boarded merchants while guiding them through the process of managing online risk, detecting transaction launderers, hidden transaction tunnels, and fraud detection. Its flagship products include MerchantView for detecting online money laundering and MarketView for keeping marketplaces clean from illegal products.
“Many types of serious criminal activities are trying to hide behind legitimate-looking facades that are very difficult to track and unmask, digital technology has made it easier for potential fraudsters to hide in plain sight,” said Ron Teicher, EverC’s co-founder and CEO. “We believe that light is the best disinfectant and transparency and visibility are critical in doing business in the digital age. EverC aspires to be a source of confidence for organizations who facilitate payments online, providing them the tools, data, and insights needed to navigate risk and capitalize on new opportunities.”
“As commerce moves increasingly online so does the crime associated with it. EverC is at the forefront of machine learning and AI research to develop technology that addresses a problem of epic magnitude, with a direct impact on the wellbeing of all of us,” said Barak Salomon, Managing Partner at Red Dot Capital Partners. Mr. Salomon joins EverC’s board.
“We are grateful to Red Dot and our existing investors for their continued trust and support, to our customers and partners who continue to challenge us every day and partner with us to allow for safe and clean eCommerce, and most importantly to our amazing employees who work tirelessly to advance our important mission,” Teicher added.