LONDON:  Featurespace Ltd, a leading provider of adaptive behavioural analytics for Enterprise Financial Crime prevention, has completed a £30 million fundraising to support continued growth.

Featurespace Ltd is the portfolio company of IP Group plc, the developer of intellectual property-based businesses.

The round was led by Merian Chrysalis Investment Company Ltd and also included further funding from existing investors including IP Group, Highland Europe, MissionOG, TTV Capital and Invoke Capital Partners.

Following completion of the transaction, IP Group will hold a direct undiluted beneficial stake of 19.7% in Featurespace. The directors expect that this transaction will result in a direct unrealised fair value gain to the Group of approximately £10 million compared with Featurespace’s last financing round and that the Group’s holding will be valued at approximately £40 million. IP Group committed £1 million to the fundraising.

More than 30 major global financial institutions are using Featurespace’s ARIC Risk Hub to protect their business and customers, including four of the five largest banks in the UK. Customers include HSBC, TSYS, Worldpay, RBS NatWest Group, Contis, Danske Bank, ClearBank, Permanent TSB and Betfair. ARIC Risk Hub uses advanced, explainable anomaly detection to enable financial institutions to automatically identify risk, catch new fraud attacks and identify suspicious activity in real-time.

Jon Edington, Partner, Technology, IP Group, said: “Featurespace continues to go from strength to strength, having expanded within financial services, and is working with a wide range of financial institutions across Europe and the US. The company has been recognised with a string of awards including being named in the 2020 CB Insights AI 100 list, being the 25th fastest growing technology company in the Sunday Times Hiscox Tech Track 100, and being among RBS’s strong partners in the 2019 Results and Investor update. Featurespace is a great example of a high growth technology asset that we have helped nurture over the last 8 years. We are delighted to support the team with this fundraising which will help drive further international growth.”