Shape Security reaches US$ 1 Billion valuation with US$ 51 Million Funding

Anti-fraud startup Shape Security recently raised US$51 million in a funding round led by C5 Capital along with existing investors, including Focus …
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Anti-fraud startup Shape Security recently raised US$51 million in a funding round led by C5 Capital along with existing investors, including Focus Ventures, JetBlue Technology Ventures, Top Tier Capital Partners, EPIC Ventures, Kleiner Perkins, HPE Growth, and Norwest Ventures Partners. The California-based startup has reached the US$ 1 billion valuation mark with the latest investment.

Shape Security stated the new proceeds will accelerate the company’s product development and also support its business expansion in North America.

Headquartered in London, Shape Security helps enterprises prevent automated and imitation attacks. It provides omnichannel protection for web applications, mobile applications, and API interfaces. The company claims that its Fraud Prevention Platform detects and blocks over 2 billion fraudulent transactions daily.

Commenting on the new investment, Derek Smith, co-founder, and CEO of Shape Security said, “This investment will help us scale our international operations and fuel our AI development. Our new and returning investors, coupled with our continued track record of growth, underscore our vision to protect all enterprises from fraudulent Internet transactions. Shape’s growth and product innovation are unlike anything we’ve seen in enterprise security.

“Shape Security is a pioneer and a proven leader in the war against all types of fraudulent internet transactions,” said Ted Schlein, partner at Kleiner Perkins. “The company’s technology is unmatched in its ingenuity and effectiveness. Our investment speaks to the confidence we have in its unique solution, and the vision of its leadership team.”

“Shape already protects Internet users at scale by detecting and blocking up to 2 billion fraudulent transactions daily. This new injection of capital will further the company’s global market penetration,” Schlein added.

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Shape Security valued at $1bn following $51m funding round

On Thursday (12 September), Santa Clara enterprise security firm Shape Security announced that it had raised $51m in a recent Series F funding …

After a $51m funding round, Shape Security said that an IPO is in the pipeline for the company.

On Thursday (12 September), Santa Clara enterprise security firm Shape Security announced that it had raised $51m in a recent Series F funding round.

The round was led by C5 Capital, with additional participation from returning investors Kleiner Perkins, HPE Growth, Norwest Ventures Partners, Focus Ventures, JetBlue Technology Ventures, Top Tier Capital Partners and Epic Ventures.

To date, Shape Security has raised a total of $183m. In a statement regarding the recent funding round, the company also revealed that it has reached a valuation of $1bn.

The anti-fraud company, which was founded in 2011, is headquartered in California, with offices in London and Sydney.

Shape Security is used to defend some of the world’s largest enterprises from fraud in online applications, including more than half of all online banking in North America. The company also serves global brands across telecomms, e-commerce, government, travel and hospitality, insurance and healthcare, claiming that it “protects more accounts from fraud than all other providers in the space combined”.

Growth plans

According to a number of reports, Shape’s founders have said they are planning an IPO now that the company has achieved unicorn status. Despite saying that “preparation for an IPO is part of our plan”, the company did not give a timeframe for launching a public offering.

Co-founder and CEO of Shape Security, Derek Smith, said: “This investment will help us scale our international operations and fuel our AI development.

“Our new and returning investors, coupled with our continued track record of growth, underscore our vision to protect all enterprises from fraudulent internet transactions.”

C5 Capital’s involvement will help the company accelerate growth across Europe and the Middle East. The funding will also support Shape’s continued growth in North America.

André Pienaar, managing partner at C5 Capital, said: “Shape’s growth and product innovation is unlike anything we’ve seen in enterprise security. Shape already protects internet users at scale by detecting and blocking up to 2bn fraudulent transactions daily. This new injection of capital will further the company’s global market penetration.”

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C5 Capital Leads $51 Million Growth Funding Round Into Shape Security, the Leading Online …

Shape was recently recognized as a World Economic Forum Technology Pioneer, as a CB Insights AI 100 company, and in the Deloitte Technology …

LONDON–(BUSINESS WIRE)–

C5 will use its network and experience to support Shape’s international expansion

C5 Capital, the specialist venture capital firm focused on cyber security, data analytics and cloud computing, has led a $51 million financing round in Shape Security, maker of the leading platform for bot and online fraud mitigation for the world’s largest companies.

Investing alongside C5 are renowned Silicon Valley and corporate investors Kleiner Perkins, HPE Growth, Norwest Ventures Partners, Focus Ventures, JetBlue Technology Ventures, Top Tier Capital Partners, and EPIC Ventures. The new capital brings the total amount raised by Shape, founded in 2011, to $173 million with a pre-money valuation on the business of $1 billion.

Shape uses AI-powered automation and fraud detection capabilities to distinguish between human and automated traffic and defend some of the world’s largest enterprises against cyber-security initiated fraud against their online applications. Shape protects more than half of all online banking in North America as well as global brands across retail, telecommunications, government, travel and hospitality, insurance, and healthcare industries. As the world leader in online fraud prevention, the company protects more accounts from fraud than all other providers in the space combined and its technology detects and blocks up to two billion fraudulent or unwanted transactions every day.

C5 Capital’s investment comes as Shape focuses on international expansion and C5 will bring its network and experience in helping companies develop internationally to support Shape’s growth beyond the North American market and particularly in Europe where cyber fraud awareness remains lower than in the US.

The transaction marks the fourth investment for C5 Capital in 6 months and its sixth investment in the last 12 months, following its investments in in-memory grid provider Hazelcast, and Blue Cedar, a leading developer of no-code mobile app security solutions.

Shape was recently recognized as a World Economic Forum Technology Pioneer, as a CB Insights AI 100 company, and in the Deloitte Technology Fast 500™ as the fastest-growing company in Silicon Valley and the third-fastest growing company in the US.

Commenting on the investment Andre Pienaar, Managing Partner C5 Capital, said:

“We are delighted to have led this funding round and excited by our investment in Shape which has established itself as the leading online fraud prevention platform. C5 will use its considerable experience in helping companies expand globally to support Shape as it targets international growth beyond its still fast-growing North American market.”

Commenting on the investment Derek Smith, co-founder and CEO of Shape Security, said:

“This investment will help us scale our international operations and fuel our AI development. Our new and returning investors, coupled with our continued track record of growth, underscore our vision to protect all enterprises from fraudulent Internet transactions.”

About C5 Capital

C5 Capital Limited (C5) is a specialist venture capital firm, focused on Innovative Technologies in Cyber Security, Artificial Intelligence and Cloud Computing. Headquartered in London, C5 also has offices in Washington, Munich, Luxembourg and Bahrain. For more information, visit: www.c5capital.com.

About Shape Security

Shape Security, based in Mountain View, CA, invented the world’s first botwall in 2011. Today, Shape defends the world’s largest enterprises from all types of fraud against their online applications, including more than half of all online banking in North America. Shape’s fraud prevention platform detects and blocks up to 2 billion fraudulent or unwanted transactions daily, while keeping 200 million legitimate human logins and other interactions safe. Shape provides omnichannel protection for web applications, mobile applications and API interfaces; the company’s mobile SDK is deployed on more than 200 million iOS and Android devices worldwide. The company has been recognized as a World Economic Forum Technology Pioneer, as a CB Insights AI 100 company, and in the Deloitte Technology Fast 500™ as fastest-growing company in Silicon Valley and the third-fastest growing company in the U.S. To learn more, visit www.shapesecurity.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190912005912/en/

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Shape Security’s latest product protects smaller businesses from credential stuffing

Shape Security has been helping big companies stay safe from fraudulent activities like password reuse and bot traffic on their publicly facing …

Shape Security has been helping big companies stay safe from fraudulent activities like password reuse and bot traffic on their publicly facing websites and apps. The company now wants to help smaller companies have that same type of protection, and today it announced a new cloud service called Connect aimed at that market.

“We’re an enterprise-focused company that protects the majority of large U.S. banks, the majority of the largest airlines, similar kinds of profiles with major retailers, hotel chains, government agencies and so on. We specifically protect them against automated fraud and abuse on their consumer-facing applications — their websites and their mobile apps,” Shuman Ghosemajumder, Shape Security CTO explained.

The company has taken that same type of protection and packaged it for smaller businesses. “What we’re doing with the new product, which is called Connect, is automating those aspects which we have provided with the high-end [product], and are making it easier to deploy and run,” Ghosemajumder said.

He said that they get protection against the same kind of high-end, automated fraud that the large enterprise customers get, as well as protection against DDoS attacks, scraping and so on.

The company is best known for stopping the act of credential stuffing, a sophisticated kind of strike where attackers continually try to get onto a website or app using stolen usernames and passwords. In addition, they tend to use a variety of computers and IP addresses to mask the attack. In fact, Sumit Agarwal, who is co-founder and chief operating officer at Shape, coined the term when he was working at the Department of Defense in a previous position before he helped launch the company.

A product like Connect can help expand Shape’s market by moving beyond the large enterprises that have been its primary target up until now. While it provides a similar level of service, it delivers it in a way that makes it easier for these smaller organizations to consume, while still enabling them to take advantage of the advanced security techniques that would typically be out of their reach.

Shape Security was founded in 2011, but spent several years developing the core product before emerging from Stealth in 2014. It currently has 300 employees and has raised $132 million, according to Crunchbase data. The most recent round was $26 million in November.

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JPMorgan Chase Honors Shape Security with Hall of Innovation Award

MOUNTAIN VIEW, Calif., Dec. 19, 2018 (GLOBE NEWSWIRE) — Shape Security, a pioneer in bot and automated fraud mitigation, today announced …

MOUNTAIN VIEW, Calif., Dec. 19, 2018 (GLOBE NEWSWIRE) — Shape Security, a pioneer in bot and automated fraud mitigation, today announced that JPMorgan Chase & Co. (NYSE:JPM) has inducted the company into its Hall of Innovation for its platform, which addresses automated web and mobile threats.

Once a year, the JPMorgan Chase Hall of Innovation recognizes select emerging technology companies such as Shape for their innovation, business value, and disruptive nature. The award was presented to Shape at the J.P. Morgan Technology Innovation Symposium, held in Menlo Park, California.

“We were impressed by Shape’s innovative approach to help enable a high-security, low-friction user experience,” said Rohan Amin, Chief Information Security Officer and Chief Technology Control Officer of JPMorgan Chase & Co. “Shape has enhanced JPMorgan Chase’s ability to keep customers secure by detecting and blocking automated threats in real time, and we appreciate our partnership with them.”

“We’re honored to receive this award from JPMorgan Chase,” said Sumit Agarwal, Co-Founder and Chief Operating Officer of Shape Security. “The company has worked alongside Shape to develop innovative ways to improve the customer experience through security. There is nothing more humbling than having a customer validate the work that we do, and we look forward to continuing our partnership with JPMorgan Chase.”

About JPMorgan Chase & Co.

JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.6 trillion and operations worldwide. The firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

About Shape Security

Shape Security is defining a new future in which excellent cybersecurity not only stops attackers, but also reduces friction for good customers. Shape disrupts the economics of cybercrime by making it too expensive for attackers to commit online fraud, while also enabling enterprises to more easily transact with genuine customers. The Shape platform, covered by 55 patents, was designed to stop the most dangerous application attacks enabled by bots and cybercriminal tools, including credential stuffing (account takeover), fake account creation, and unauthorized aggregation. The world’s leading organizations rely on Shape as their primary line of defense against attacks on their web and mobile applications, including three of the Top 5 US banks, five of the Top 10 global airlines, two of the Top 5 global hotels, and two of the Top 5 US government agencies. Today, the Shape Network defends 1.7 billion user accounts from account takeover and protects 40% of the consumer banking industry. The company is headquartered in Mountain View, California, and also has offices in London and Sydney.

Contact Information

Press@shapesecurity.com

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