Sift is a company providing fraud detection and prevention solutions. It combines big data and machine learning to find patterns and detect fake accounts, payment fraud, account takeover, and content abuse.
Official website: https://sift.com/
Headquarter: San Francisco, US
Sift’s financial metrics
- Total funding: $156.5 million
- Last funding round: $50 million
- Last round valuation: over $1 billion
- Last round date: April 2021
- Lead investors: Insight Partners, Union Square Ventures, Spark Capital, Stripes.
Highlights
Sift Digital Trust & Safety platform used by 34,000 websites and apps that use built-in machine learning models to track, manage and block risky transactions before any fraudulent activity takes place.
- In 2020 Digital Trust & Safety platform processed more than $250B in transactions, double from what it did in 2019.
- Sift technology is used by Twitter, HelloFresh, Twilio, DoorDash, Wayfair, and McDonald’s.
- The company won Best Antifraud Solution for Case Management nomination at the CNP Awards
- In May 2021, Sift acquired Chargeback — a platform for real-time dispute management for merchants, to provide more advanced services to e-commerce clients.
- Sift platform analyses a global data network of 70 billion events per month in order to predict and detect fraudulent activity.
Sources: Sift.com, CNP, Crunchbase and TechCrunch
Market overview
According to GrandViewResearch report, the global fraud detection and prevention market size was valued at $20.98 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 15.4% from 2021 to 2028.
The large enterprise segment accounted for the largest revenue share of more than 74% in 2020. At the same time, the pandemic has stimulated cybersecurity concerns among SMEs. Frauds among smaller businesses are estimated to drive the segment growth over the coming years.
In a survey of more than 5,000 respondents across 99 global territories in 2020, PwC found that 47 percent had suffered at least one form of fraud in the prior 24 months—averaging six per company. These were commonly customer fraud and cybercrime, which cost $42 billion to businesses worldwide.
Key market players in the fraud detection and prevention (FDP) market are IBM, Oracle, SAP, Total System Services, and Fiserv.
Sources: Grand View Research, PwC
Financial performance
- After the funding round in April 2021 company acquired Chargeback to offer a broader solution for e-commerce; the deal amount is undisclosed. In November 2021 Sift acquired Keyless to offer a secure and passwordless authentification for enterprises and online shops.
- The company plans to use new capital primarily to expand its product portfolio and to scale product, engineering, and sales teams.
Founders and management
- Jason Tan founded Sift in 2011 after broad experience in cybersecurity startups. In 2021, he stepped down as a CEO and become Executive Chairman.
- Marc Olesen joined Sift in 2018, currently is CEO. Previously, Marc had senior positions in various cloud and cybersecurity companies.
- Sift also recently tapped Eu-Gene Sung — who worked in financial leadership roles at Integral Ad Science, BSE Global and McCann — to serve as its CFO.
Sources: Globe Newswire, TechCrunch, Sift Blog