Today we are excited to announce our investment in Deduce, a data-driven platform focused on user privacy and security.
There is no doubt that identity fraud is growing exponentially ($20BN+ problem annually), as an increase in data breaches drives account take overs (ATO) and credential stuffing. Compounding the problem is the advent of smart banking, e-commerce, and digital currencies, each of which has increased monetization opportunities around stolen accounts. Secular trends arising from both consumer behavior and enterprise patterns only increase the attack surface and threat to each user’s personal data.
For years, we have been looking for companies in the identity protection space. We found that the vast majority of existing fraud detection vendors and prevention tools simply just do not work. They tend to rely on known vectors of attack in lieu of learning customer behavior patterns. Current vendors also just do not have access to the relevant or required volume of data to create an identity network effect for countering real-time threats.
In comes Deduce. Founded in 2019 by ad-tech, security, and privacy experts who have worked together for 15 years across 3 different companies, Deduce possesses the perfect combination of team, vision, and solution. With early-backing by our friends at True Ventures, Deduce has already been able able to achieve superior network effects leading to consistent product enrichment and customer acquisition.
Novel approach to data aggregation paves the way for an advanced identity network.
Early on, the founders realized that while data traditionally utilized for improving customer experience and targeted marketing has been siloed, it actually creates a shared base that can be leveraged for advanced machine learning models surrounding identity intelligence and fraud prevention techniques.
By leveraging a coalition of over 50 large-scale enterprise partners providing proprietary user data across 150K websites, Deduce has been able to create the world’s most sophisticated ATO and identity intelligence platform. Built on a community of security minded members with an interest in protecting users and their digital identities, a collection of machine-learning models and algorithms supports an identity Network for million of users. The early customer traction across +10 enterprise clients further validates not just the demand for sophisticated solutions in the space, but the early product-market fit Deduce has achieved.
We are thrilled to have the opportunity to partner with Ari, Todd, and Jeff, and look forward to being by their side on their latest venture.