LOS ALTOS, Calif., May 24 /PRNewswire/ -- Guardian Analytics, the innovator in predictive analytics-based fraud prevention software, today announced that it has raised $9 million in funding, led by Sutter Hill Ventures with participation by existing investor Foundation Capital. The 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.
2009 saw record highs in online banking cyber attacks and fraud losses as criminals directly assaulted existing online security solutions, sparking both high-profile lawsuits and debates in Washington over business protection and security regulations. To stem the tide of losses, industry experts are recommending that financial institutions take a new approach to fraud prevention and monitor customer behavior to proactively prevent fraud. Guardian Analytics' flagship software, FraudMAP™ is the industry's first fraud prevention solution designed from the ground up using predictive behavioral analytics.
"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."
Recognized as a Visionary in the Gartner Magic Quadrant for Web Fraud Detection for two years in a row, Guardian Analytics is gaining substantial recognition for its innovative predictive analytics technology and deep expertise in online account takeover and payments fraud. The Company achieved record results in 2009, increasing new customer sales by 300 percent year-over-year and driving a 100 percent customer renewal rate. Earlier this year, the company announced FraudMAP for Business Banking, the industry's first solution designed specifically to detect suspicious behavior in the complex, multi-user business-banking environment where fraudsters have recently stolen hundreds of millions of dollars using Man-in-the-Browser attacks and networks of money mules.
"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."
In conjunction with the funding, Greg Sands of Sutter Hill Ventures is joining the board of directors at Guardian Analytics.
About Sutter Hill Ventures
Sutter Hill Ventures is a venture capital firm that finances technology-based start-up and early-stage companies that pioneer products or services in growth markets, especially those in information technology and health care. Founded in 1964, it is one of Silicon Valley's original venture capital firms. Some of the companies backed by Sutter Hill include: Network Appliance, Legato, Quantum, StorageTek, Quinstreet, Data Domain, Alteon, Linear Technology, nVidia, and BroadVision. For more information about Sutter Hill Ventures, please visit www.shv.com.
About Foundation Capital
Founded in 1995, Foundation Capital is a venture capital firm committed to supporting entrepreneurs and their companies, targeting innovative opportunities in cleantech, consumer Internet and infrastructure; telecommunications and networking; and enterprise software and on demand services. Foundation Capital funds total more than $2.4 billion. For more information, visit www.foundationcapital.com.
About Guardian Analytics
Headquartered in Los Altos, Calif., Guardian Analytics is focused on the prevention of online account fraud. The company's real-time risk management approach to fraud detection, forensics and risk monitoring is built on strong analytics and predictive models of individual behavior. Leading financial services institutions rely on Guardian Analytics to protect individual account assets and the integrity of their online channels. Founded in 2005, Guardian Analytics is privately held with venture funding from Foundation Capital and Sutter Hill Ventures. For more information, please visit www.guardiananalytics.com.
SOURCE Guardian Analytics