Security Experts:

Fraud Fighting Firm ThreatMetrix Scores $18 Million in Round Led by August Capital

ThreatMetrix, a provider of technologies to help organizations thwart cybercrime, today that it has closed a Series D round of financing in the amount of $18 million led by venture firm August Capital.

The core technology from ThreatMetrix is a software-as-a-service (SaaS) solution that profiles devices being used in an online transaction to help companies determine whether the users are fraudsters or legit customers. The company’s device profiling technology goes beyond browser fingerprinting to identify the device, bypass proxies and detect the use of botnets.

ThreatMetrix LogoThe company has expanded its technology use case scenarios beyond account origination, account logins, and payments and transactions into the remote employee access market for enterprises by helping to prevent unknown or unauthorized devices from connecting to corporate networks.

The company plans to use the additional funding to continue its global expansion into e-commerce, financial services and the enterprise remote employee access markets. ThreatMetrix raised $12.2 Million in its most recent round of funding back in October 2010.

In December 2011, ThreatMetrix acquired TrustDefender, an Australian-based company that offers “secure browsing technology” designed to protect against malware and stop attacks including man-in-the-browser (MitB) attacks.

The company said that it experienced 300 percent growth year-over-year in 2011, claiming more than 700 customers worldwide, and now protects more than 5,000 Web sites and is profiling nearly 1 billion devices on a monthly basis.

As part of the financing round, Vivek Mehra, general partner, August Capital is joining the ThreatMetrix board of directors.

“We’re extremely pleased to have August Capital, one of the preeminent Silicon Valley venture capital firms, lead this round,” said Reed Taussig, president and CEO, ThreatMetrix.

Existing investors also participating in the round include Tenaya Capital, US Venture Partners and CM Capital.

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For more than 10 years, Mike Lennon has been closely monitoring the threat landscape and analyzing trends in the National Security and enterprise cybersecurity space. In his role at SecurityWeek, he oversees the editorial direction of the publication and is the Director of several leading security industry conferences around the world.