Investment - February 2020

The Janvest General Partnership is pleased to announce the execution of Limited Partnership IV’s first investment in an Israeli founded emerging technology company. Below you will find information about the business and corresponding investment. We welcome your questions and feedback.

 DEAL SUMMARY
Company Name / Obsecure
Website / www.Obsecure.io
Offices / New York City and Boston
Sectors / Cyber Security & Digital Payments
Founders / 2
Year Founded / 2019
Number of Board Positions Held by Janvest / One
Total Janvest LP IV Investment / $1,500,000
LP IV Ownership / ~18.5%

 TECHNOLOGY DESCRIPTION
Obsecure is the first to market with an Intent Biometrics-based digital payments verification platform. Over the last decade, the digital payments landscape has and continues to evolve rapidly with the introduction of real-time payments, peer to peer payments, open banking, digital wallets, and endless other innovation coming from banks, payment providers, marketplaces, and a growing number of financial technology companies. By 2024, it is expected that the digital payments market will reach $8 trillion. At the same time, losses from fraud are growing and expected to cost nearly $48 billion annually by 2023. While there are an array of technologies that can help the payments ecosystem verify a customer’s identity (who you are), only Obsecure can also address intent (what you want done). Obsecure’s Artificial Intelligence-based technology can simultaneously verify both a customer’s identity and intent regardless of payment destination, customer location, device, and other ‘risky’ indicators, thus eliminating statistical errors. While nothing is guaranteed certain, the company’s aim is to provide 100% accuracy and marginal false positives as it pertains to identifying and blocking fraudulent transactions.

 MARKET APPLICATIONS
Obsecure’s unique technology comes with an array of applications within the digital payments ecosystem

 MARKET ADOPTION
Obsecure is early in the development of their technology and therefore have yet to formally begin marketing a solution. In fact, the company is most likely 8-12 months away from having a marketable product given the complex nature of what they are building. However, when the company does go to market, there are a few market segments that the Obsecure team knows intimately well and believes would be a first point of expansion:

-Banks and Banking Services
-Account Information Service Providers (AISP)
-Payment Initiation Service Providers (PISP)
-Open Banking Platforms
-Payment Networks
-Core Banking / Payment Platforms

 TEAM
Obsecure’s team consists of world renowned cyber security technologists and researchers with proven track records of building, commercializing, and scaling complex security solutions.

 JANVEST VALUE-ADD
Janvest played an instrumental role in helping Obsecure’s founding team think through their financing strategy. This pre-round advisory took place over a multi-month period of time where Janvest partner Daniel Frankenstein and Obsecure CEO Erez Zohar, both of whom are based in New York City, met on a near weekly basis to discuss round dynamics and how to prioritize the spend of a smaller round versus a larger round. Even before Obsecure formally opened their round to other venture funds, they had already selected Janvest as their lead investor with a corresponding executed term sheet. Janvest plans on continuing to be a value-add to Erez and his team as we provide active advisory on the company’s Board of Directors.

JANVEST CONTACT INFORMATION

Brian Rosenzweig
Atlanta, GA
Brian@Janvest.com

Dafna Winocur Biran
Tel Aviv, Israel
Dafna@Janvest.com

Daniel Frankenstein
New York City, NY
Daniel@Janvest.com