CashShield, a startup that assists businesses in fighting online fraud via turning the risks into revenue potential, announced that it has received nearly $6 million in funding. The round was led by GGV Capital—the managing partner of which, Jenny Lee, will join their board of directors—with additional participation from the private equity firm Heliconia Capital Management. They also received help from the gaming lifestyle brand Razer, the venture capital firm Stream Global, and Tony Fadell, also known as the “Father of the iPod.”
The Singapore-based startup provides software-as-a-service that allows businesses to connect through API integration. Founded by its CEO Justin Lie, CashShield is the world’s first and only fully machine-automated fraud management solution. The award-winning solution uses artificial intelligence as well as Wall Street trading tools. It is uniquely powered by proprietary high-frequency trading algorithms, real-time pattern recognition, and passive biometric analytics. CashShield eliminates the need for human involvement such as data scientists and fraud analysts to prevent online fraud. This is made possible by algorithms can learn in real-time.
“Considering that zero percent risk gives you zero percent returns, fraud risk is to be managed rather than eliminated completely,” wrote CashShield founder and CEO Justin Lie. “We often tell our merchants that by simply increasing their fraud rates from 0.1 percent to 0.2 percent, they might be able to increase their potential revenue by a further 10 percent. Since CashShield’s inception, we have built the business to be financially independent, allowing us to scale with our partners. Without having to rush into raising capital, we had the opportunity to select our investors carefully, forming a strong team of partners and affiliates to become the global leader in the industry.”
Pushing its way into profitability since 2008, this investment round is a strategic move intended to form essential long-term partnerships, and to accelerate expansion globally. CashShield continues to assist companies in their fight against the epidemic of online fraud, which is predicted to cost approximately $27 billion by the year 2020.