Pindrop Secures $100 Million Financing to Combat Fraud and Deepfake Threats

Pindrop Secures $100 Million Financing To Accelerate Fraud And Deepfake Detection Technologies

This additional funding comes at an instrumental time for Pindrop as the company continues to innovate groundbreaking voice security and authentication solutions ATLANTA, July 17, 2024 /PRNewswire/ -- Pindrop, a global leader in voice authentication and security, today announced it has secured $100 million in debt financing from Hercules Capital, Inc. (NYSE: HTGC). This significant funding will enable Pindrop to further develop its cutting-edge audio, voice, and AI technologies, enhancing its offerings for customers in the banking, finance, contact center, insurance, utilities, healthcare, retail, and other industries. Contact centers, which play a crucial role in these sectors, are becoming increasingly vulnerable as cyberattacks grow more sophisticated. As a result, contact center fraud has surged by 60% in the last two years, reaching the highest levels since 2019. By the end of this year, one in every 730 calls to a contact center is expected to be fraudulent. Posing an estimated $5 billion fraud risk to U.S. contact centers, voice authentication solutions are imperative in keeping a company secure. On a mission to shape the future of voice security and authentication against the rising threats mainly caused by generative AI, Pindrop's technologies help organizations to detect fraudsters and authenticate genuine customers at scale. To date, Pindrop has analyzed 5.3 billion calls, prevented $2 billion in fraud losses, and detected 104 million spoof calls. Dedicated to leveraging good AI to combat bad AI, Pindrop is making significant strides in the fight against deepfakes. "We're pleased to secure this financing with Hercules Capital at such a pivotal moment for Pindrop," said Pindrop Founder & CEO, Vijay Balasubramaniyan. "This funding will fuel our ongoing growth and innovation in voice and AI technologies. As cyber threats continue to evolve, our mission to stay ahead of fraudsters and protect our customers is more critical than ever. We're excited about the future as we remain committed to driving advancements that safeguard major institutions and deliver unparalleled security in the digital age." John Chambers, Pindrop Investor and Board Member, Founder & CEO of JC2 Ventures, and former Executive Chairman and CEO of Cisco, added, "In December 2023, I predicted that deepfakes would be the #1 issue for companies and countries alike in 2024, which has been extremely accurate. In my career, I have had the opportunity to help position companies to lead in these big market transitions, and I can say with confidence that Pindrop is uniquely positioned to do just that with their revolutionary voice security and authentication technology. What's more, they developed their product in a matter of months, brought it to market, and secured their first five or six references the very next quarter. The entire VC group on their Board of Directors immediately invested in this effort and, under Vijay's leadership, Pindrop will achieve the fastest run rate to $5 million in an entirely new product area by an existing company, compared to any other company I have seen. This new investment from Hercules Capital comes at a pivotal time for Pindrop, enabling them to further develop their cutting-edge audio, voice, and AI technologies and enhance their offerings for customers in the banking, finance, contact center, and insurance industries." Earlier this year, Pindrop notably identified the Text-to-Speech (TTS) engine used in the President Biden robocall attack urging New Hampshire voters not to vote during the Democratic primaries. As AI's impact on this year's election drew more attention from legislators and regulators. Pindrop has been honored to have its CEO participate in the US Senate Forum On AI, the Attorneys General Spring Symposium, and the House Financial Services Committee's Bipartisan AI Working Group Roundtable. This announcement follows several key milestones for Pindrop: "Hercules is incredibly excited to partner with Pindrop as they continue working to transform the AI and voice authentication landscape," said John Eggbeer, Managing Director, Hercules Capital, Inc. (NYSE: HTGC). "We're proud to support their mission of safeguarding major institutions from rising cyberattack threats. This financing will help accelerate their growth and innovation, enabling them to expand their reach and enhance their capabilities in providing robust security solutions." Pindrop continues to lead the way in voice authentication and security, ensuring robust protection against fraud and enhancing the safety of digital interactions for its customers. For more information, please visit www.pindrop.com. About Pindrop: Pindrop's solutions are leading the way to the future of voice by establishing the standard for identity, security, and trust for every voice interaction. Pindrop's solutions protect some of the world's biggest banks, insurers, and retailers using patented technology that extracts intelligence from every call and voice encountered. Pindrop solutions help detect fraudsters and authenticate genuine customers, reducing fraud and operational costs while improving customer experience and protecting brand reputation. Pindrop, a privately held company headquartered in Atlanta, GA, was founded in 2011 by Dr. Vijay Balasubramaniyan, Dr. Paul Judge, and Dr. Mustaque Ahamad and is venture-backed by Andreessen Horowitz, Citi Ventures, Felicis Ventures, CapitalG, GV, IVP, and Vitruvian Partners. For more information, please visit pindrop.com. 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Pindrop Secures $100 Million Financing To Accelerate Fraud And Deepfake Detection Technologies By Investing.com

This additional funding comes at an instrumental time for Pindrop as the company continues to innovate groundbreaking voice security and authentication solutions , /PRNewswire/ -- Pindrop, a global leader in voice authentication and security, today announced it has secured in debt financing from Hercules Capital (NYSE:HTGC), Inc. (NYSE: HTGC). This significant funding will enable Pindrop to further develop its cutting-edge audio, voice, and AI technologies, enhancing its offerings for customers in the banking, finance, contact center, insurance, utilities, healthcare, retail, and other industries. Contact centers, which play a crucial role in these sectors, are becoming increasingly vulnerable as cyberattacks grow more sophisticated. As a result, contact center fraud has surged by 60% in the last two years, reaching the highest levels since 2019. By the end of this year, one in every 730 calls to a contact center is expected to be fraudulent. Posing an estimated fraud risk to contact centers, voice authentication solutions are imperative in keeping a company secure. On a mission to shape the future of voice security and authentication against the rising threats mainly caused by generative AI, Pindrop's technologies help organizations to detect fraudsters and authenticate genuine customers at scale. To date, Pindrop has analyzed 5.3 billion calls, prevented in fraud losses, and detected 104 million spoof calls. Dedicated to leveraging good AI to combat bad AI, Pindrop is making significant strides in the fight against deepfakes. "We're pleased to secure this financing with Hercules Capital at such a pivotal moment for Pindrop," said Pindrop Founder & CEO, . "This funding will fuel our ongoing growth and innovation in voice and AI technologies. As cyber threats continue to evolve, our mission to stay ahead of fraudsters and protect our customers is more critical than ever. We're excited about the future as we remain committed to driving advancements that safeguard major institutions and deliver unparalleled security in the digital age." , Pindrop Investor and Board Member, Founder & CEO of JC2 Ventures, and former Executive Chairman and CEO of Cisco (NASDAQ:CSCO), added, "In , I predicted that deepfakes would be the #1 issue for companies and countries alike in 2024, which has been extremely accurate. In my career, I have had the opportunity to help position companies to lead in these big market transitions, and I can say with confidence that Pindrop is uniquely positioned to do just that with their revolutionary voice security and authentication technology. What's more, they developed their product in a matter of months, brought it to market, and secured their first five or six references the very next quarter. The entire VC group on their Board of Directors immediately invested in this effort and, under Vijay's leadership, Pindrop will achieve the fastest run rate to in an entirely new product area by an existing company, compared to any other company I have seen. This new investment from Hercules Capital comes at a pivotal time for Pindrop, enabling them to further develop their cutting-edge audio, voice, and AI technologies and enhance their offerings for customers in the banking, finance, contact center, and insurance industries." Earlier this year, Pindrop notably identified the Text-to-Speech (TTS) engine used in the President Biden robocall attack urging voters not to vote during the Democratic primaries. As AI's impact on this year's election drew more attention from legislators and regulators. Pindrop has been honored to have its CEO participate in the US Senate Forum On AI, the Attorneys General Spring Symposium, and the House Financial Services Committee's Bipartisan AI Working Group Roundtable. This announcement follows several key milestones for Pindrop: "Hercules is incredibly excited to partner with Pindrop as they continue working to transform the AI and voice authentication landscape," said , Managing Director, Hercules Capital, Inc. (NYSE: HTGC). "We're proud to support their mission of safeguarding major institutions from rising cyberattack threats. This financing will help accelerate their growth and innovation, enabling them to expand their reach and enhance their capabilities in providing robust security solutions." Pindrop continues to lead the way in voice authentication and security, ensuring robust protection against fraud and enhancing the safety of digital interactions for its customers. For more information, please visit www.pindrop.com.

Pindrop Raises $100 Million in Battle Against Deepfake Calls

The funding, announced Wednesday (July 17) and coming from Hercules Capital, allows Pindrop to further develop its audio, voice, and artificial intelligence (AI) technologies for customers in industries that include banking, finance, contact center, insurance, utilities, healthcare and retail. "Contact centers, which play a crucial role in these sectors, are becoming increasingly vulnerable as cyberattacks grow more sophisticated," the company said in a news release, noting a recent surge in contact center fraud. Voice authentication solutions, the company said, can help protect against this fraud. Pindrop said it has analyzed 5.3 billion calls, prevented $2 billion in fraud losses and detected 104 million spoof calls, helping guard against deepfakes. "This funding will fuel our ongoing growth and innovation in voice and AI technologies," said Vijay Balasubramaniyan, Pindrop's founder and CEO. "As cyber threats continue to evolve, our mission to stay ahead of fraudsters and protect our customers is more critical than ever. We're excited about the future as we remain committed to driving advancements that safeguard major institutions and deliver unparalleled security in the digital age." Pindrop's new funding comes as regulators look to rein in deepfake use as part of a broader effort to tame the "wild west" of AI, as PYMNTS wrote Wednesday. For example, FCC Chair Jessica Rosenworcel this week proposed new rules requiring the disclosure of AI use in robocalls to protect against scams and misinformation. This move is part of a larger effort by the Commission to address the challenges presented by rapidly evolving AI technologies in the communications field, including actions against deepfake voice calls used for election misinformation and fines for carriers involved in such practices. "Bad actors are already using AI technology in robocalls to mislead consumers and misinform the public," Rosenworcel said in a news release. "That's why we want to put in place rules that empower consumers to avoid this junk and make informed decisions." At the same time, PYMNTS noted last week, AI is also used to help companies detect deepfakes. "This technology could be used to protect company reputations or employees by verifying media content, detecting impersonation attempts and safeguarding employee privacy by preventing the spread of deepfake content that might violate employee's privacy or be used for harassment," Zendata CEO Narayana Pappu told PYMNTS.

Deepfake-detecting firm Pindrop lands $100M loan to grow its offerings | TechCrunch

The threat of deepfakes is growing as the AI tools to create them become widely accessible. There was a 245% increase in deepfakes worldwide from 2023 to 2024, an uptick spurred in part by coming election cycles, according to verification provider Sumsub. It's also affecting the corporate sector; a recent Business.com survey found that 10% of companies have faced deepfake-aided fraud, like cloned voices. The trend, unsurprisingly, has been a windfall for companies marketing tools to defend against deepfakes and technologies used to produce them. One of those companies, Pindrop, on Wednesday announced that it secured a $100 million, five-year loan from Hercules Capital, which CEO Vijay Balasubramaniyan says is being earmarked for product development and hiring. "With advancements in generative AI, voice cloning in particular has become a powerful tool," Balasubramaniyan told TechCrunch. "Deepfake detection leveraging AI detection technologies is now needed by every call center to stay one step ahead of fraudsters." Pindrop builds deepfake-combatting and multi-factor authentication products targeting businesses in banking, finance and related industries. The company claims its tools can ID contact center callers, for example -- and with higher accuracy than rival solutions. "Pindrop leverages a data set of over 20 million utterances, both synthetic and genuine, to train the AI models to differentiate between genuine human voices and synthetically generated ones," Balasubramaniyan said. "We've also trained over 330 text-to-speech (TTS) models to help identify TTS models used to create the deepfake." Bias is a common problem in deepfake detection models. Many audio models tend to be biased toward recognizing Western, American voices and perform poorly with different accents and dialects, which could lead a detector to classify a legitimate voice as a deepfake. It's up for debate whether synthetic training data -- training data generated by AI models themselves -- mitigates or exacerbates the biases. For what it's worth, Balasubramaniyan thinks the former and claims that Pindrop's voice authentication products focus on the "acoustic and spectro-temporal features" of voices as opposed to pronunciation or language. "AI-based voice recognition systems tend to display biased results towards tonal, accent, vernacular and dialect differences which could have racial implications," Balasubramaniyan said. "These biases are derived from homogeneity of the data that is used to train the systems that may lack in representation of various ethnic, racial, gender or other differences, thus limiting the variety of data that the AI systems are trained on." Regardless of its products' efficacy, Pindrop has made substantial inroads since 2011, when Balasubramaniyan, an ex-Googler, founded the company with former Barracuda Networks chief research officer Paul Judge and Mustaque Ahamad. To date, the Atlanta-based firm, which employs around 250 people, has raised $234.77 million in venture capital from investors including Vitruvian Partners, CapitalG, IVP and Andreessen Horowitz. Asked why Pindrop opted for debt as opposed to equity this time around, Balasubramaniyan said that it was an "attractive option" to "efficiently raise growth capital" without diluting Pindrop's equity. (That's a common strategy.) The proceeds from the loan will enable Pindrop to bring its tech to new sectors, Balasubramaniyan added, such as healthcare, retail, media and travel. "With the advent of generative AI, we are seeing a massive demand for our solutions worldwide, and plan to look at expanding into countries that are seeing significant threats due to deepfakes," Balasubramaniyan said. "Pindrop is positioned to help companies protect themselves and their consumers from rising fraud and deepfake threats with fraud prevention, authentication and liveness solutions."