Featurespace, a UK-based fraud detection technology developer backed by payment processing firm Worldpay, closed a £30m ($36.8m) funding round today that included a $1.2m contribution from commercialisation firm IP Group.

Investment firm Merian Chrysalis led the round, which was also backed by Highland Europe, MissionOG, TTV Capital and Invoke Capital Partners.

IP Group has increased its stake in Featurespace to 19.7% at a valuation of around $49.1m, an increase of $12.3m from the spinout’s last funding round.

Spun out of University of Cambridge in 2008, Featurespace offers machine learning-driven software that allows financial services firms to identify fraudulent customer transactions in real-time.

The technology is trained to distinguish data irregularities from legitimate customer payments. It is used by more than 30 financial institutions, as well as in other sectors prone to fraud such as online gambling.

The funding brings Featurespace’s total to around $108m and will be utilised to support its international expansion.

Insight Venture Partners and MissionOG co-led a $32.3m round in January 2019 that was backed by IP Group, Highland Europe, Invoke Capital and private investor Robert Sansom, after a $21.7m round led by Highland two years before with participation from Worldpay, Touchstone Innovations – now owned by IP Group – and Invoke.

Featurespace had already raised $9m in 2016 from Touchstone, then called Imperial Innovations, along with research charity Nesta, TTV Capital and private investors from syndicate Cambridge Angels, after Touchstone had led a $5m round in 2014 that included both Nesta and Cambridge Angels.

Jon Edington, technology-focused partner at IP Group, said: “Featurespace continues to go from strength to strength, having expanded within financial services, and is working with a wide range of financial institutions across Europe and the US.”

– The original version of this article appeared on our sister site, Global University Venturing.

Featurespace, a UK-based fraud detection technology spinout of University of Cambridge, closed a £30m ($36.8m) funding round today that included a $1.2m contribution from commercialisation firm IP Group.
Investment firm Merian Chrysalis led the round, which was also backed by Highland Europe, MissionOG, TTV Capital and Invoke Capital Partners.
IP Group has increased its stake in Featurespace to 19.7% at a valuation of around $49.1m, an increase of $12.3m from the spinout’s last funding round.
Founded in 2008, Featurespace offers machine learning-driven software that allows financial services firms to identify fraudulent customer transactions in real-time.
The technology is trained to distinguish data irregularities from legitimate customer payments. It is used by more than 30 financial institutions, as well as in other sectors prone to fraud such as online gambling.
The funding brings Featurespace’s total to around $108m and will be utilised to support its international expansion.
Insight Venture Partners and MissionOG co-led a $32.3m round in January 2019 that was backed by IP Group, Highland Europe, Invoke Capital and private investor Robert Sansom, after a $21.7m round led by Highland two years before with participation from Touchstone Innovations – now owned by IP Group – Invoke and payment processing firm Worldpay.
Featurespace had already raised $9m in 2016 from Touchstone, then called Imperial Innovations, along with research charity Nesta, TTV Capital and private investors from syndicate Cambridge Angels, after Touchstone had led a $5m round in 2014 that included both Nesta and Cambridge Angels.
Jon Edington, technology-focused partner at IP Group, said: “Featurespace continues to go from strength to strength, having expanded within financial services, and is working with a wide range of financial institutions across Europe and the US.”