Software provider Microsoft led a $22m series B round for Arkose Labs, a US-based provider of online fraud prevention technology, on Tuesday through corporate venture capital subsidiary M12.
Digital payment processor PayPal and venture capital firm US Venture Partners (USVP) also participated in the round, which lifted the company’s overall funding to $36m.
Arkose has built an anti-fraud product that utilises a proprietary risk engine called Arkose Detect in addition to a challenge-response tool, Arkose Enforce, which is intended to dissuade fraudsters by making them face incrementally more challenges as they progress.
The series B funding will support further development of the company’s platform in addition to increasing headcount and expanding its business internationally. It was founded in Australia in 2015.
PayPal had invested an undisclosed amount in Arkose in November 2018 to take its total funding to $14m, two months after USVP had led its $6m series A round.
Nagraj Kashyap, and head of M12, said: “We are proud to welcome Arkose Labs to M12’s portfolio. With Arkose’s end-to-end anti-fraud platform, enterprises across the globe can better protect against fraud and abuse long term.
“Multiple Microsoft businesses are already benefitting from this innovative technology, and we are committed to supporting Arkose’s accelerated growth.”
