New York-based fintech security firm nsKnox has announced a new funding round of $17 million, bringing its total funding to date to $35.6 million. The funding round was led by venture capital firms Link Ventures and Harel Insurance & Finance, and was joined by existing nsKnox investors including M12 – Microsoft’s Venture Fund, Viola Ventures, and Alon Cohen, the Company’s Founder and CEO and formerly Founder, Chairman and CEO of CyberArk. The proceeds from this funding round will be primarily used by nsKnox to scale its Go-to-Market infrastructure and to expand its product suite to corporations and banks.
nsKnox specializes in Bank Account Validation and B2B Payment Security, and works with some of the world’s largest enterprise companies, helping them to send and receive B2B transactions without the fear of fraud. The company leverages its patented Cooperative Cyber Security™ (CCS™) and groundbreaking Bank Account Certificate™ technologies to secure both outbound and inbound payments from fraud, nsKnox’s solutions detect and prevent finance and ops infrastructure attacks, social engineering, business email compromise (BEC), insider fraud, and other Advanced Persistent Fraud attacks.
The CEO of nsKnox, Alon Cohen, said, “In the current market conditions, this round is a true testament to the importance of what we do at nsKnox and the growing demand for bank account validation and B2B payment security and compliance solutions. nsKnox’s mission is to safeguard B2B payments, whether they are outbound or inbound, from external perpetrators as well as bad insiders. We have made a significant leap this year, securing tens of new global corporate customers and growing our total ARR by more than 125%. This funding will allow us to continue developing our platform for corporations and expand our services to banks.”
The COVID-19 pandemic has accelerated the shift to digital transactions and the need for security solutions to protect against fraud. According to a recent report, 3 out of 4 large corporations were hit by fraud in the last year, and this number is expected to grow in the near future. This funding round is a reflection of the growing demand for bank account validation and B2B payment security and compliance solutions. Lisa Dolan, Managing Director, Link Ventures, said “The global fraud detection market is growing from paper to digital and has dramatically increased in recent years, especially since the onset of the pandemic. With nsKnox, we have found a seasoned cyber security team who has developed a patented process that validates the ownership of any account in the world.”
Tomer Goldberg, Managing Director, Harel Tech, said “We are excited by the potential of this investment both for us and for our customers. This is a real problem affecting companies in both monetary and reputational aspects, and nsKnox has developed both the technology and the methodology to overcome it.”