Riskified, an Israeli eCommerce fraud prevention company, has completed its public listing on the New York Stock Exchange (NYSE) and began trading on Thursday with a $3.3 billion market cap. Riskified trades under the ticker RSKD and finished the week at $27.42 per share.
Founders have a $570M stake in the company
The Israeli fraud prevention company raised $363 million as part of the NYSE listing, with a potential to rise up to $420 million if the 2.6 million shares allocated to underwriters is realized. Riskified raised capital from offering 17.3 million shares -- nearly 11% of the company -- at $21 a share.
Riskified, which enables eCommerce retailers to distinguish between legitimate customers and fraudulent activity, secured its last funding round in 2019 -- entering the Unicorn club with a billion dollar valuation -- and now by going public has tripled that valuation.
Riskified’s system performs split second background checks on purchases and authenticates them; only charging customers on approved transactions. The transactions are insured by Riskified, meaning if fraud is discovered, the Israeli company takes the loss. The technology is based on consumer online behavior analysis in combination with machine learning algorithms, which are updated in real-time, enabling the system to accurately distinguish between fraud and legitimate purchases.
The company was founded 8 years ago by CEO Eido Gal and CTO Assaf Feldman, who both own nearly $285 million worth of shares (Gal holds 8.7% and Feldman has 8.6%). Israeli fund Genesis Partners is the company’s biggest shareholder, with 19.5% in holdings that are valued at almost $650 million.