Iovation Inc., a Portland, Ore.-based provider of device reputation for managing online fraud, abusive behavior and multi-factor authentication, has raised $15 million in second-round funding. SAP Ventures and European Founders were joined by return backer Intel Capital.
iovation, the device reputation authority for the Internet, today announced it has successfully completed a $15 million investment round by securing growth capital from SAP Ventures, the corporate venture capital arm of SAP AG (NYSE: SAP), and European Founders, a leading investor for emerging growth companies looking to expand into Europe. The two companies join Intel Capital, Intel's global investment group, as iovation's initial group of investors.
“We are extremely excited about our new relationships with SAP Ventures, European Founders and Intel,“ said Greg Pierson, CEO of iovation. “These companies are well established, recognized leaders in the global market. They've built strong business relationships in Europe and
iovation pioneered the first device reputation service that provides real-time fraud and abuse protection for a number of verticals including online retail, financial services, Internet gaming and online social networking sites. Using patented technology, iovation exposes known fraudsters and abusers, and their relationships between suspicious devices, so they can no longer hide behind multiple identities to perpetrate online fraud and abuse. Customers sharing iovation's network of device reputation intelligence are better equipped to prevent online fraud and abuse while increasing operational efficiencies and business revenues through more precise risk management.
“SAP Ventures is committed to innovative technologies that enhance the way businesses protect their online environments,“ said Nino Marakovic, head of SAP Ventures. “iovation's unique device reputation network enables companies to strengthen their fraud detection capabilities so they can proactively identify fraudulent devices on their network and connect the dots between all devices and accounts they are associated with worldwide. We are very confident in iovation's growing success and look forward to working with them to capitalize on their unique market position.“
“As a proven leader in online fraud and abuse prevention solutions, iovation is perfectly positioned to drive innovation in an industry poised for aggressive growth,“ said Oliver Samwer, co-founder of European Founders. “The European market is seeing rapid growth across the e-commerce sector, and iovation's device-based reputation fraud management tools are a critical component in providing stronger fraud management solutions that protect online businesses and their customers from fraud and abuse. Given iovation's innovative technology and our ability to successfully expand business in Europe, we are confident we can help iovation realize their full potential in these emerging markets.“
About SAP Ventures
Since 1996, SAP Ventures has been investing in companies that offer exciting new technologies and applications. Leveraging years of experience and drawing on a network of powerful business relationships, SAP Ventures helps entrepreneurs and management teams recruit the best people, make the right technology decisions, win new business, and build their own partner networks. The goal of SAP Ventures is to grow businesses that create shareholder value for everyone involved. For more information, visit www.sapventures.com.
About European Founders
The brothers Marc, Oliver and Alexander Samwer invest in selected technology companies via their company European Founders Fund GmbH. The Samwer brothers are the founders of eBay Germany (alando) and Jamba! (now part of News Corp.). The companies founded by the Samwer brothers today generate sales of over 1 billion euros. The brothers focus their investments on young and later stage technology companies from the field of internet and wireless technologies. The Samwer brothers have extensive experience in these sectors and a tight-knit network of partners with which they can support the companies they invest in. The Samwers aim to support exceptional business founders and promising business models facilitate.
About Intel Capital
Intel Capital, Intel's global investment organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software and services targeting enterprise, home, mobility, health, consumer Internet, semiconductor manufacturing, and cleantech. Since 1991, Intel Capital has invested more than US$6 billion in approximately 1,000 companies in more than 40 countries. In that timeframe, about 157 portfolio companies have gone public on various exchanges around the world and another 187 have been acquired by other companies. In 2006, Intel Capital invested about US$1.07 billion in 163 deals with approximately 60 percent of funds (excluding Clearwire) invested outside the United States. For more information on Intel Capital and its differentiated advantages, visit www.intelcapital.com.
iovation, headquartered in Portland, Oregon pioneered the use of device reputation for managing online fraud, abusive behavior and multi-factor authentication. Today, iovation manages the reputation of millions of Internet-enabled devices worldwide, allowing its customers to control online fraud and abuse while benefiting from sharing device reputation intelligence. For more information on iovation and the company's products, visit www.iovation.com.