# Deduce

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/deduce

- Industry: IT Security/Cybersecurity
- Headquarters: New York, US
- Website: www.deduce.com
- Total disclosed funding: $26M
- Latest round: Series A (Sep 13, 2023)
- Investors on record: 7

## About

Deduce, Inc., based in the US, specializes in fraud prevention through advanced AI technology, focusing on synthetic identity fraud detection for financial institutions and fintech companies.Founded in 2019 in New York, Deduce, Inc. offers solutions that target identity fraud. The company has successfully completed a total of 4 deals, with its most recent funding round occurring on September 13, 2023. Deduce raised USD 9.000 mn in a Series A round led by Freestyle VC, with participation from Foundry Group and True Ventures. The total amount raised to date is USD 9.000 mn, and the current company valuation is USD 43.001 mn. The company is led by CEO Ari Jacoby.Deduce offers a proprietary solution focused on preventing stolen and synthetic identity fraud, leveraging advanced AI technology and a unique identity graph. Their primary service utilizes real-time data forensics to identify and flag synthetic identities during the onboarding process of financial institutions and fintech companies. Deduce's technology allows organizations to block fake accounts generated by AI and identify existing fraudulent customer profiles, thereby reducing potential financial losses associated with identity fraud. The solution is particularly valuable in the banking and fintech sectors, where the risk of fraud is substantial. Deduce's client base includes financial institutions across the United States, where they deploy their technology to enhance fraud prevention measures and improve customer trust.Deduce generates revenue through a subscription-based model, aiming to deliver ongoing fraud prevention services to its clients. The company partners with financial institutions, offering tailored solutions that integrate seamlessly into existing verification systems. Clients pay for access to Deduce's identity graph and fraud detection technology, ensuring they can effectively manage risks associated with synthetic identities. Each client engagement can involve various pricing tiers based on the scale of the services utilized, allowing organizations to select plans that suit their specific needs. The revenue structure is designed to provide continuous support and updates, reflecting the evolving landscape of identity fraud and enhancing the effectiveness of client operations.In September 2023, Deduce, Inc. raised USD 9.000 mn in Series A funding led by Freestyle VC, with participation from Foundry Group and True Ventures. The company will use this funding to introduce its GenAI Identity fraud solution to the market. Deduce plans to expand its offerings and enter new geographic regions, specifically focusing on enhancing its presence in the financial sectors where the demand for robust fraud prevention solutions is growing.

## Funding rounds

- Series A, Sep 13, 2023, $9M — True Ventures, Foundry Group, Freestyle VC
- Series A, Jun 24, 2021, $10M — True Ventures, Foundry Group, Gaingels
- Seed, Nov 30, 2020, $7.3M — True Ventures, Ridge Ventures, Recursive Ventures
- Seed, May 15, 2019 — Union Bay Partners

## Investors

- Union Bay Partners (https://capitalatlas.ai/funds/union-bay-partners) — Seed
- True Ventures (https://capitalatlas.ai/funds/true-ventures) — Seed, Series A
- Ridge Ventures (https://capitalatlas.ai/funds/ridge-ventures) — Seed
- Recursive Ventures (https://capitalatlas.ai/funds/recursive-ventures) — Seed
- Foundry Group (https://capitalatlas.ai/funds/foundry-group) — Series A
- Gaingels (https://capitalatlas.ai/funds/gaingels) — Series A
- Freestyle VC (https://capitalatlas.ai/funds/freestyle-vc) — Series A