nyc tech overview + socure by johnny ayers

Loyola Venture Community

Johnny Ayers Co-‐Founder &

Director of Business Development Socure

NYC TradiBonal Industry Overview

•  Finance •  Real Estate •  Fashion •  AdverBsing •  Law •  And more recently... technology

NYC Tech Investment surpasses Mass. in 2010

And conBnues to grow

Majority of deal flow in Seed/Series A

ExciBng Bmes indeed! •  The number of technology jobs climbed from 33k in 2003

to 52.9k in 2012 •  Mayor Bloomberg names Cornell University and the

Technion-‐Israel InsBtute of Technology the winners of his Applied Sciences NYC iniBaBve over Stanford and others in December 2011

•  Cornell NYC Tech campus has aYracted over $500 million in private funds

•  The school launched its “beta” class of 7 students this year in Chelsea office space donated by Google

A quote from Bloomberg’s commencement speech at Stanford

•  “Now, we had hoped that Stanford itself might help lead our tech boom in NYC. That didn’t work out – no hard feelings-‐ but I think in the end, it will because I believe that more and more Stanford graduates will find themselves moving to Silicon Alley, not only because we’re the hoYest new tech scene in the country, but also because there’s more to do on a Friday night than go to the Pizza Hut in Sunnyvale and you may even be able to find a date with a girl whose name is not Siri.”

About me •  Raised in VA, educated in Boston, live in NYC •  AYended Boston College

–  BS in Finance, MS in Finance •  Started career at IBM as a Senior Consultant in their

Business AnalyBcs and OpBmizaBon group •  Co-‐Founder & Director of Business Development at Socure •  www.linkedin.com/in/johnayers1/ •  Big fan of visiBng new countries, playing basketball and

squash and watching BC Football

Socure •  Raised $2M+ in seed funding from NYC venture groups and

individual investors •  Socure has built an arBficial intelligence system called Social

Biometrics™ that combines people’s online and offline idenBty data and inspects social behavioral paYerns to determine if a consumer is who they say they are online

•  Socure sells Social Biometrics™ APIs as an addiBve soluBon to

businesses directly and indirectly, charging a fee per API call

•  Socure’s customer base includes financial insBtuBons, e-‐payments providers, shared marketplaces and e-‐commerce sites both domesBcally and abroad

(c) Socure 2014. ConfidenBal InformaBon.


$21 Billion was lost to iden0ty fraud in the US last year

Most fraud incidents are registered only when consumers report them and most of the Bme they don’t report so the real losses are much higher than staBsBcs imply.

© Scams, Schems & Swindles report over 22 years by Fraud Research Center.org

Fraud Defense Landscape TRANSACTIONAL FRAUD CHECKS – partnership opportuni0es (looking at payment or click-‐flow behaviors on websites) Nice/AcBmize, Experian/41st Parameter, Guardian AnalyBcs, Sio Science, American Express/AccerBfy, ThreatMetrix, iovaBon, IdenBtyMind, ethoca, MaxMind, Kount, EMC/RSA/Silvertail * -‐ EFF’s PanopBclick project tracks these companies’ products as spyware. These companies have a mobile focus.

SOCIAL FRAUD CHECKS -‐-‐ compe00ve (looking at social behavior) Socure, Signifyd, DemystData, Trustev, Trulioo

MALWARE FRAUD CHECKS -‐-‐ partnership opportuni0es (looking for viruses, trojans, phishing and other malware behaviors on websites and devices) IBM/Trusteer, ThreatMetrix, FireEye, Symantec, Intel/McAfee, CA


Market Opportunity


Total Available Market

Serviced Available Market*

$67.2B $30B

$4.6B $6.6B

$97.2B

$11.2B

*Based on 2013 10K filings for relevant lines of business


Socure Social Biometrics™ is superior to tradi0onal iden0ty fraud defense

? Blacklist

DB Credit DB

MarkeBng DB

IdenBty verificaBon with tradiBonal fraud detecBon tools against offline DBs might result in stale or inaccurate results for

various markets

Nearly 30% of the world’s populaBon uses Social Media and

pass real-‐Bme signals that improves the fidelity of exisBng fraud prevenBon soluBons

Combining network effects such as aYestaBon from social connecBons and

people’s unique social behavior paYerns with online and offline idenBty

cross-‐referencing makes Social Biometrics™ verificaBon more robust


Socure Social Biometrics™ In Opera0on

?

NEW CUSTOMER

✔

VERIFIED CUSTOMER TradiBonal fraud tools perform poorly when there is no historical data for customers. Socure adds predictors to exisBng fraud tool’s

logisBc regression models improving performance

§  We sell APIs as products directly and indirectly

to large and mid Ber enterprises §  We have a financial insBtuBon and e-‐commerce

focus (expanding to federal government, healthcare and retail verBcals)

§  We make money every Bme our APIs are called by businesses as their customers register new accounts, login and pay or send money

§  Different APIs have different price points starBng at $.50 list to a few cents with volume discounts

§  Served market bears between $1 -‐ $5 per call, so there is room for revenue opportunity growth

§  Product is being used both as a stand-‐alone soluBon replacing compeBBve products and as an addiBve predictor to improve exisBng fraud system performance


Business Model

6%

56%

38%

Revenue Projec0on Breakdown

Re-‐seller Partner OEM Partners Direct Sales

QuesBons?

•  Feel free to email me any addiBonal quesBons you might have – [email protected]

•  And thanks for having me!