The fintech company ThetaRay announced this week that it has raised $57 million, led by the fintech fund Portage. The funding round also included participation from Erel Margalit’s JVP fund – the largest shareholder in the company, and the Israeli investment platform Ourcrowd.
ThetaRay is a company rooted in patented artificial intelligence technology designed to monitor transactions with the aim of reducing the risk of financial fraud. The company’s clientele boasts notable names such as the Spanish bank Santander, the Emirati bank Mashreq, and the British bank Clearbank. While ThetaRay’s development center is located in Israel, its headquarters is situated in New York.
The global fintech sector, and particularly the Israeli one, faces challenging times. In 2022, the local fintech industry attracted investments worth $2.6 billion, a sharp decline from the $6 billion in 2021. In the first half of 2023, investments in Israeli fintech amounted to a mere $545 million.
However, despite these challenging times, ThetaRay is experiencing a new chapter of dramatic growth. The extensive expertise of Forter in the fintech market and financial services makes them an ideal partner for ThetaRay. Peter Reynolds, recently promoted in June to be the CEO of ThetaRay from his previous position as the Chief Revenue Officer, and the dedicated team at ThetaRay are poised to drive the company’s continued geographical expansion. Their groundbreaking financial technology is set to reach numerous destinations globally, emphasizing North America, Europe, Africa, Asia, and Arab countries. The goal is to push ThetaRay into new realms of boundary-breaking innovation.
Erel Margalit, the Chairman of ThetaRay, is optimistic about the future. He stated that ThetaRay is in the midst of a dramatic growth phase. Margalit further emphasized that Forter’s significant expertise in the fintech and financial services sector makes them an ideal ally for ThetaRay. He believes that the company, under the leadership of Peter Reynolds and the dedicated ThetaRay team, is set to expand geographically and introduce their groundbreaking financial technology to multiple destinations worldwide.
Reynolds, reflecting on the current financial landscape, noted that it’s a sensitive time for fundraising globally. For successful fundraising, a rapidly growing business on the path to profitability is essential. Companies that burn through cash and progress slowly are in trouble. However, he remains hopeful, believing that the markets will soon stabilize and we will witness more public offerings in the near future.