Shape Security Raises $26 Million To Prevent Attackers From Committing Online Fraud

By Dan Anderson ● November 5, 2018

Shape Security has announced that it has raised $26 million in a round of funding led by Norwest Venture Partners. New strategic investors JetBlue Technology Ventures and Singtel Innov8 participated in this round. And existing investors Kleiner Perkins, Venrock, Baseline Ventures, Allegis Capital, Focus Ventures, Epic Ventures, Raging Capital, and Tomorrow Ventures joined this round as well.

Following this round of funding, Shape Security has raised $132 million in total funding. Shape Security will be using this funding round to accelerate its international expansion.

What does Shape Security do? Shape Security eliminates bots, fraudulent activity, and unwanted automation for over 20% of the consumer brands in the Fortune 500. And the company protects over 100 million legitimate human logins every day. Using an extensive dataset, Shape’s artificial intelligence platform is able to detect and shut down automated attacks in real-time.

“Criminals spill more than 5 million usernames and passwords every day,” said Shape Security co-founder & COO Sumit Agarwal in a statement. “Criminals then use these credentials to attack large web and mobile applications. We founded Shape to stop these attacks, protecting both users and enterprises from fraud. Our long-term mission is to deliver security that not only prevents attacks, but also improves usability, creating a safer, better internet for all.”

JetBlue chief digital and technology officer Eash Sundaram said that the airline company uses Shape Security’s technology to protect customers online. JetBlue’s investment in Shape Security is an expansion of the relationships between both companies.

Shape Security also disrupts the economics of cybercrime by making it too expensive to commit online fraud. And its technology enables enterprises to easily identify and transact with genuine customers on websites and mobile apps. Three out of the top five US banks, five out of the top 10 global airlines, two of the top 5 global hotels, and two of the top 5 US government agencies all rely on Shape Security to fight fraud. The Shape Network currently defends 1.7 billion user accounts from account takeover and it protects 30% of all US savings.

“Shape’s technology creates incredible reductions in fraud losses for the Fortune 500,” added Norwest Venture Partners Senior Managing Partner Promod Haque. “I’ve served on the boards of multiple security companies over the years, including FireEye, and the exceptional growth we’re witnessing at Shape Security and the demand for the company’s products is an extremely positive sign for Shape’s future and the direction of the industry.”

Shape Security CEO Derek Smith and Agarwal both previously held leadership roles at the Pentagon. Smith is also known for co-founding a company called Oakley Networks, which was acquired by Raytheon. And Agarwal previously led Google’s North American Mobile Product Management division. Shape Security CTO Shuman Ghosemajumder is known for helping launch Gmail and the company’s Chief Security Scientist Xinran Wang created the Wildfire malware sandboxing technology platform while working at Palo Alto Networks.