New Investment Opportunity: ThetaRay
AI-powered financial transaction monitoring platform for trusted global payments
- Cutting-edge AI-based anti-money laundering software for major financial institutions detects sophisticated financial crimes
- SaaS based, transaction monitoring solution for global payments, helps banks, FinTechs and regulators to accelerate their business growth, meet regulatory KYC requirements, minimizing burden and inconvenience to innocent customers by sharply reducing false positives
- Impressive 2.5X YOY ARR growth to forecast $8.5M in Q2 2022, 6X YOY growth in number of customers; forecasting 3X YOY ARR growth to $15.4M by end 2022; 100% retention rate among cross-border payments clients; 144% net dollar retention
- Customers include Top-5 correspondent bank, 3 of 12 largest correspondent banks outside China
- $12M SAFE with 20% discount and cap of $93M vs. post-money value of $87M at end 2020 despite 2.5X rise in ARR since then helped by effectiveness vs. Russian sanction-busting
"We were very happy and surprised with the results from ThetaRay" – Micheal Sheehy, CPO, Payoneer
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with your Investor Relations representative
Dear Josb,
The Ukraine crisis and accompanying economic sanctions on Russia are pushing banks and FinTechs to ensure they have effective solutions to conduct their global cross-border payments business with confidence that it is not being manipulated to circumvent sanctions.
OurCrowd is reinvesting in ThetaRay, a rapidly growing Israeli company that has developed and deployed a proprietary, state-of-the-art, AI-driven SaaS platform that provides banks and FinTechs with superior AML capabilities that allows them to accelerate business growth. The details in this email are based on information received from, and verified solely by, the company.
The Problem
Cross-border payment volume, already valued at $37T, is growing swiftly, driven by an acceleration in digital platforms. Undetected financial crime is rampant, preventing new business relationships and revenue growth.
The Solution
ThetaRay is on a mission to establish a new standard of trust in the global payment ecosystem by creating a secure financial network connecting people and businesses everywhere. The company's SONAR transaction monitoring solution, based on "artificial intelligence intuition," allows banks and FinTechs to expand their business opportunities through safe and reliable cross-border payments.
Using AI intuition based on proprietary algorithms, SONAR analyzes dozens of risk indicators associated with financial crimes. This unique approach paints a clear picture for compliance teams to detect and pinpoint transactions indicating suspicious activities. As a result, SONAR can deliver up to 95% investigation-worthy alerts, whereas legacy solutions typically have a 99.5% false-positive rate which equates to one true positive for every 200 alerts. In addition, these legacy rules-based solutions require months to be configured and deployed, while SONAR's solution can be ready for deployment within days.
The Traction
Since OurCrowd's last investment, ThetaRay has shown impressive growth. ARR is forecast to rise 2.5X YOY to $8.5M in Q2 2022. The company forecasts 3X YOY increase in ARR to $15.4M by the end of 2022. Growth has been driven by a 6X increase in the number of customers YOY, with net dollar retention of 144% and zero churn from any cross-border payments clients.
The company has demonstrated proven customer ROI through accelerated business growth, cost efficiencies from lower compliance costs, and increased risk coverage.
ThetaRay has a solid customer base including a Top-5 correspondent bank and 3 of the 12 largest correspondent banks outside of China.
The Round
ThetaRay is raising a $12M SAFE at a 20% discount with a cap of $93M. This represents excellent value: ThetaRay's last round in December 2020 had a post-money valuation of $87M, and the company has had excellent traction since then, including a 2.5X YOY rise in ARR boosted by the company's ability to help financial institutions detect Russian efforts to evade sanctions.
Meet the CEO
We're hosting a webinar/conference call on Wednesday, June 29th, at 7PM Israel / 12 Noon New York / 9AM San Francisco for investors to meet CEO Mark Gazit and learn more about ThetaRay.
Can't make the webinar? Register and we will send you a recording of the call.
The ThetaRay Solution
ThetaRay's SONAR transaction monitoring solution is a packaged, cloud-native solution for banks, payment FinTech companies, and regulators to easily launch next-gen AI based payment transaction monitoring and screening to efficiently detect and prevent money-laundering and other financial crimes.
ThetaRay's proprietary AI significantly enhances risk coverage and operational efficiency while meeting regulatory standards, resulting in higher revenues and improved customer service.
Using AI intuition based on proprietary algorithms, SONAR analyzes dozens of risk indicators associated with financial crimes. This unique approach paints a clear picture for compliance teams to detect and pinpoint transactions indicating suspicious activities. As a result, SONAR can deliver up to 95% investigation-worthy alerts, whereas legacy solutions typically have a 99.5% false positive rate which, as mentioned above, equates to one true positive for every 200 alerts. In addition, these legacy rules-based solutions require months to be configured and deployed, while SONAR's solution can be ready for deployment within days.
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