Bain Capital Ventures is getting into the mobile security business.
Yesterday (March 25), mobile fraud prevention and mobile application security company InAuth announced that it has received $20 million in a Series A funding round led by Bain Capital Ventures. BCV Managing Director Ben Nye will join the InAuth board as a result of the investment.
Founded in 2011, InAuth provides application publishers with app-embedded technology that secures both the application data and financial transactions carried within the app, providing protection against would-be fraudsters. Last year, InAuth added four of the five largest U.S. banks as its customers; other clients include payment processors, eCommerce merchants, and health insurance companies.
“We are excited to be partnering with Bain Capital Ventures to support our global expansion, as well as our entry into new verticals,” said InAuth CEO Lisa Stanton. “Mobile transactions will grow at 50 percent CAGR over the next three years, compared to 10 percent CAGR for the desktop. Any business that needs to ensure trust in their mobile solutions will benefit from the products and solutions that InAuth provides.”
Nye said in a statement that BCV is impressed with InAuth’s blue-chip client list and its advanced technologies.
“Fraud on mobile is 70 percent higher than on the desktop, and we read on a weekly basis about new cybersecurity threats,” Nye stated. “Businesses must protect their users as mobile becomes the preferred customer touch-point. The InAuth team is paranoid about mobile security, so that their customers don’t have to be.”