Online fraud prevention software firm, Guardian Analytics, today announced that it has raised $9 million in funding, led by Sutter Hill Ventures with participation by existing investor Foundation Capital. In conjunction with the funding, Greg Sands of Sutter Hill Ventures will join the board of directors at Guardian Analytics.
The new Series C funding will be used to accelerate product innovation and capitalize on the growing demand for fraud prevention solutions that can protect financial institutions and their customers from today’s sophisticated cybercrime.
Online banking saw a record number of attacks and losses due to fraud in 2009 as cybercriminals exploited existing online security solutions, sparking both high-profile lawsuits and debates in Washington over business protection and security regulations.
“Banks and credit unions are at war with cybercriminals and need solutions that can protect them against ever-evolving threats,” said Greg Sands, managing director, Sutter Hill Ventures. “Guardian Analytics is solving this escalating industry problem with a clearly differentiated and proven approach. Their growing customer base is ecstatic with the results and we see 2010 as a breakthrough year for the company.”
The fast growing company acheived record results in 2009 with a 300 percent increase in new customer sales year-over-year and a 100 percent customer renewal rate.
“We believe the best way for financial institutions to win the war on cybercrime is by using the one strategic advantage they have – deep knowledge about their customers’ behaviors. Using that notion as the foundation of our solution development has driven our success from day one and is the core of our vision for the market,” said Terry Austin, CEO, Guardian Analytics. “This infusion of capital will allow us to take our market presence to the next level and will fuel our overall awareness, customer acquisition and product innovation efforts.”