Much of our days are built around digital experiences, and companies are increasingly looking for ways to unlock conversion and optimize fraud screening. Today, a startup that has built a real-time behavioral analytics tool is announcing funding as it sees demand for its services increase.
Neuro-ID, an analytics platform capturing real-time customer behavior at scale for digital organizations so that they can see and understand the intent of their digital customer and identify the root cause of customer friction, secured $35 million in Series B funding.
The new capital follows $7 million Series A funding raised in December 2020, bringing the company’s total funding to $49.5 million since being founded in 2014.
Canapi Ventures led the latest round, and was joined by existing investors Fin VC and TTV Capital, which both led the Series A.
Neuro-ID is not disclosing its valuation, but CEO Jack Alton said, via email, it is on the back of “strong customer traction.”
“Neuro-ID is on track to grow three to four times in both revenue and customer base in 2021,” he added. “This follows a huge year of expansion for us, during which we also saw three to four times in client and revenue growth as well as a 500% increase in monitored customer journeys.”
Neuro-ID’s human analytics dashboard. Image Credits: Neuro-ID
The company’s list of customers includes Intuit, Square, Affirm, OppFi and Elephant Insurance, which are using Neuro-ID proprietary Human Analytics software that translates all of the swipes and taps of user behavior into actionable insights.
The behavioral analytics also enables customers to see and use behavioral data to optimize existing AI/ML models. Customers, on average, have been able to increase conversion by 200% and reduce historical fraud rates by 35%, the company said.
Alton intends to use the new funding to hire additional engineering talent, accelerate product-led growth and expand globally. In the past year, the company nearly tripled its employee base, which now stands at 60, he said.
Walker Forehand, partner at Canapi Ventures, said via email that he considers Neuro-ID to be a one-stop shop for identifying user intent and experience analytics that is differentiating itself from competitors with its unique ability to analyze first-time customers versus others that focus on repeat customer interactions, he added.
Delivering seamless customer journeys is a priority for both fintechs and banks, where Forehand said just less than 10% of people complete a digital journey after starting one. Traditional models are also using physical attributes for verification, like address and date of birth, whereas Neuro-ID uses other methods to identify whether a customer is genuine or fraudulent.
“This new view of customer behavior at scale opens up the ability to improve conversion to drive more revenue by fast-tracking good customers, become more sophisticated at measuring intent, and improve the design quality of their digital products, all while reducing fraud,” Forehand said. “What’s most exciting is that Neuro-ID’s technology is not only applicable to fintechs and banks, any industry that addresses high-volume digital and automated decisions could become a customer of Neuro-ID.”