The Israeli cybersecurity startup Memcyco announced on Tuesday that it has secured $37 million in Series A funding, bringing its total funding to $47 million, following an initial $10 million seed round.
The round was led by new investors NAventures, the corporate venture arm of National Bank of Canada, E. León Jimenes, and Pags Group, with participation from existing investors Capri Ventures and Venture Guides.
“The capital will fuel the global expansion of Memcyco’s agentless platform, which is rapidly replacing reactive fraud defenses with preemptive protection, making digital trust a reality for customers of the world’s largest brands,” the company said in a statement.
Memcyco is a company focused on digital risk protection and fraud management. It has a key differential by leveraging defensive and offensive mechanisms to detect when a user is being scammed, a fake or impersonating asset is created, or credentials are being harvested.
“Enterprises have spent billions building fortress walls around their login pages, but attackers have moved the battlefield,” said Israel Mazin, CEO and co-founder of Memcyco. “We are shifting the paradigm from reactive takedowns to proactive, real-time disruption,” he added.
“Memcyco detects live impersonation and scam activities at their very early stages, identifies affected users and sessions in real time, and enables proactive intervention without relying solely on threat feeds, post-login analytics, or high-friction controls,” the company statement said.
What is Memcyco’s differential
The main actors in Memcyco’s system are its “nano-defenders,” which the company claims can act as early-detection sensors in customer-facing digital access, triggering when a fraud attack unfolds.
The second component is their “device DNA,” a device identification method that enables easier recognition of suspicious or malicious users.
Finally, the company uses these fast recognition methods to feed attackers “decoy data” that damages them and mitigates the man-in-the-middle techniques many of these scams use.
The company says that its system operates as an “agent-less solution,” meaning users don’t need to install applications, download software, or register for additional devices.
“These unique capabilities lead directly to measurable business impact. Customers have observed more than 10× ROI within the first year, a reduction of over 50% in ATO incidents, and significantly lower reimbursement costs,” the company assured.
Aiming for global expansion
Memcyco announced that it plans to use the funding to expand its business into new markets outside of Israel and the US.
“In the LATAM region, financial and consumer markets are facing a sophisticated wave of impersonation scams that traditional tools cannot catch,” said Marcos J. Jorge of E. León Jimenes, one of the investment groups that participated in this round. ”Memcyco’s capability to offer preemptive protection without requiring consumers to install new software is a game-changer for adoption in our markets,” he added.
Joshuah Lebacq of NAventures also said in the Memcyco statement that “Financial institutions are motivated to boost efficiency while safeguarding clients. Memcyco provided value by delivering clear, reliable insights and preventing issues before they arise, a unique solution in the market that strengthens our suite of digital safety tools.”
Memcyco assures that its solutions are scalable to several industries, including banking, card companies, e-commerce, airlines, logistics companies, online travel agencies, financial information providers, and cross-industry loyalty programs.