# Fraugster

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

- Industry: Software
- Headquarters: Berlin, Germany
- Website: www.fraugster.com
- Total disclosed funding: $14M
- Latest round: Series B (Nov 7, 2018)
- Investors on record: 6

## About

Fraugster Limited, based in Berlin, Germany, specializes in AI-driven solutions for risk management and fraud prevention, providing essential tools to enhance e-commerce transaction security.Fraugster Limited offers innovative fraud prevention services tailored for the e-commerce sector, focusing on minimizing fraud while maximizing transaction approvals. Founded in 2014 in Berlin, Germany, the company underwent a Series B funding round in January 2023, raising USD 14.000 mn from investors including CommerzVentures and Earlybird Venture Capital. Notably, Fraugster's operational focus has remained consistent throughout its history, concentrating on enhancing fraud management solutions without any significant pivots or changes in business strategy. The company has closed three deals to date, with its latest funding being the total raised amount.Fraugster provides a comprehensive suite of AI-driven solutions for risk management and fraud prevention in the e-commerce ecosystem. Their offerings include Fraud Management as a Service, Chargeback Protection, Account Takeover Protection, and Alternative Credit Decisions, all designed to utilize advanced machine learning algorithms. These services help reduce fraudulent activities while increasing transaction approval rates, ultimately aiding merchants across various sectors, including gaming, travel, and digital goods. Clients benefit from seamless, background operations that ensure a frictionless user experience while maintaining high security standards.Fraugster's revenue model is based on partnerships and service subscriptions, where clients pay for access to their advanced fraud prevention tools. The company operates on a transactional basis, charging clients only for approved transactions and assuming liability for any fraudulent activities. This performance-based approach encourages both Fraugster and its clients to prioritize optimal approval rates while minimizing fraud losses. Specific solutions are provided for chargeback protection and alternative credit decisions, aligning the company's financial success with that of its clients.In January 2023, Fraugster Limited ceased its operations, indicating a significant change in the company's trajectory. As such, there are no current plans for the launch of new products, market expansions, or utilization of recent funding, as the company's strategy has shifted towards winding down operations.

## Funding rounds

- Series B, Nov 7, 2018, $14M — Earlybird, Commerzbank, Seedcamp, Speedinvest, Munich Re Ventures, Rancilio Cube

## Investors

- Earlybird (https://capitalatlas.ai/funds/earlybird) — Series B
- Commerzbank (https://capitalatlas.ai/funds/commerzbank) — Series B
- Seedcamp (https://capitalatlas.ai/funds/seedcamp) — Series B
- Speedinvest (https://capitalatlas.ai/funds/speedinvest) — Series B
- Munich Re Ventures (https://capitalatlas.ai/funds/munich-re-ventures) — Series B
- Rancilio Cube (https://capitalatlas.ai/funds/rancilio-cube) — Series B