New Investment Opportunity: Shield
AI-powered electronic communications compliance
- AI-powered SaaS communications compliance platform monitors, analyzes employee activity for fraud, insider trading, market abuse, misconduct
- 117% YOY ARR growth from end of Q1 2021 to Q1 2022; projecting 2X YOY ARR by end 2022
- Current clients include Tier-1 global bank, asset managers, hedge funds and commodities trading firms
- 80% profit margin, 100% logo retention, 140% net dollar retention
- $20M Series B round led by current investor Macquarie Capital with participation from Mindset Ventures, and a top-tier strategic financial institution
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Dear Josb,
Every second, millions of human digital interactions are carried out in businesses around the world. The operational, data, risk and compliance challenges of digital communication are huge and, if not properly managed, can bring down an organization. Regulations require businesses, particularly financial institutions and FinTechs, to monitor, track, and secure internal digital communications.
OurCrowd is reinvesting in Shield, an Israeli startup that has created an AI-powered SaaS communication compliance platform which monitors and analyzes computer activity for fraud, insider trading, market abuse and employee misconduct. The details in this email are based on information received from, and verified solely by, the company.
The Problem
Financial institutions need to comply with stringent regulations and prevent market abuse. It is increasingly complicated to sort through reams of data, an obligation whose global cost has spiraled to more than $50B a year. This complex problem has been exacerbated by the Covid-19 pandemic which resulted in many employees working remotely, making it almost impossible to centralize the flow of information.
The Solution
Shield's cross-regulation compliance platform utilizes AI, natural language processing, and visualization capabilities to automate the compliance lifecycle. It features eComms surveillance to meet regulations, an eComms behavioral model for risk management, and compliance data management.
Shield offers out-of-the-box detection models for market abuse, employee conduct and information sharing. Its investigation interface is designed to help customers receive the full alert context by means of an AI-powered platform built to automate organizations' compliance processes, and pre-integrated APIs for existing platforms.
Shield's surveillance combats regulatory, reputational, and information risk. It reduces false positive alerts by 97% with an over 90% relevancy rate – reducing 3,000 average daily alerts to 90.
The Traction
Shield's ARR grew 117% from the end of Q1 2021 to the end of Q1 2022 and the company projects 2X ARR YOY growth in 2022. Helped by its SaaS business model, Shield's profit margin stands at 80%.
Shield doubled its client base in the past year to 12, which now includes Tier-1 banks, asset managers, hedge funds and commodities trading firms. The company has zero churn and 140% net dollar retention.
The Team
Shiran Weitzman, Co-founder and CEO, has over 20 years of technology and management expertise, mainly in financial services. Ofir Shabtai, Co-founder and CTO, previously founded and worked as CTO at several startups where he built global engineering teams and was responsible for strategy and the execution of real-time systems and big data.
The Round
OurCrowd has an up to $1.5M allocation in this $20M Series B round led by current client Macquarie with participation from Mindset Ventures, and a top-tier strategic financial institution.
Funds from the round will be used to bolster sales and marketing efforts, targeting small and medium-sized banks, retail banking, and non-financial institutions, while developing new capabilities like self-service, business insights, deep surveillance, and transcription.
Meet the CEO
We're hosting a webinar/conference call on Wednesday, July 20th, at 6PM Israel / 11AM New York / 8AM San Francisco for investors to meet CEO Shiran Weitzman and learn more about Shield.
Can't make the webinar? Register and we will send you a recording of the call.
The Shield Solution
Shield's SaaS communication and compliance platform automates and orchestrates the complete enterprise communications stack by:
- Capturing the complete employee communications data, including supporting meta-data
- Behavioral analysis to detect risks and misconduct by analyzing content-context-actor per electronic communication
- Collaborating to achieve adherence with regulation and operational efficiency
Next steps:
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