Our Investment in ThreatMark

Riverside Acceleration Capital (RAC) is thrilled to announce our investment in ThreatMark, a key player in behavior-based fraud prevention. The investment is part of a $23M funding round, which RAC co-led alongside Octopus Ventures and an existing investor Springtide Ventures Fund.

As online fraud reaches new heights, financial institutions face mounting challenges in protecting their customers and assets. Global losses from online banking fraud reached $486 billion in 2023 and show no signs of slowing down. Meanwhile, newer forms of fraud, such as social engineering, are emerging and present challenges to some of the more traditional fraud prevention technology. Mid-market institutions have been left especially vulnerable, particularly those wishing to enable the expanding use of real-time payments, given the cost and operational overhead of combatting fraud.

Founded in 2015, ThreatMark foresaw the growing need for cyber safety and set out to change how financial institutions fight fraud. The company developed a comprehensive fraud prevention platform that uses large behavioral models and other machine learning technologies to help protect digital banking environments. Their solution continuously analyzes data from multiple sources – including devices, user behaviors, and payment transactions – to help detect potentially fraudulent activity in real-time. The innovative approach aims to fight a broad range of fraud behaviors while enabling lighter-weight models that come pre-trained “out-of-the-box.” This enables faster time-to-value, at less cost, than traditional solutions. The dynamic can be beneficial for its Tier 1 customers, as well as small and medium-sized enterprises (SMEs), mid-market institutions, and smaller banks, by helping to achieve enterprise-grade fraud prevention capabilities across the banking landscape.

ThreatMark has gained market momentum, achieving 75% revenue growth in the past 12 months. Today, the company protects over 40 million users and mitigates more than 9,000 phishing sites annually.

The funding will help accelerate ThreatMark's market expansion, particularly in key regions like the UK and US, while supporting continued research and development. With its growing team of over 100 fraud fighters and a clear vision for the future of fraud prevention, we believe the company is well-positioned to help financial institutions of many sizes stay ahead of evolving threats.

To learn more about ThreatMark and their mission to combat digital fraud, visit www.threatmark.com.