Hungarian London-based fintech startup SEON, founded in Budapest in 2017, has been perhaps the most successful of all Hungarian startups so far. SEON developed software that screens complete data sets of profiles on the internet and settles their risk score.
The startup founder, Tamas Kadar, saw the need to bring more protection against cybercrime that would be available to both companies and non-professional everyday internet users. The product of SEON is of interest to many as it democratizes access to the fraud-fighting software that targets specific profiles, as Kadar himself admitted in an interview for the Altfi portal.
SEON: from failure to success
Until now, protection was only accessible to large enterprises with sufficient budgets and staff at their disposal, enabling them to use the software technology and increase their online safekeeping. At the moment, the application is used by more than five thousand companies, as the CyberTalk portal writes.
Prior to starting the successful business, Kadar admitted to a failure that occurred shortly after he and his friend started their own first business. In particular, their software solutions project on crypto platform failed due to inadequate cybersecurity protection against fraudsters. This experience prompted them to focus on online protection and develop products that would be ready for new incoming frauds, such as the ones emerging as a result of the Russian sanctions.
How does the product work?
The product of SEON consists of an application that analyses full data sets to protect clients. These include modules of device metadata, such as phone number and e-mail analysis, as well as IP address (Internet protocol). The software then performs behavioral analysis and social media profiling of the aforementioned aspects of the given profile to determine whether it is fraudulent or not. The final result comes in the form of a risk score on the validity of the given profile. The whole process takes no more than 30 seconds. The product cost varies and starts at 299 euros per month.
The app can be used on API and Zapier integration services that connect apps and services on a device. As SEON operates with a VPN network, a fingerprinting device service is offered to protect one against fraudsters who may make use of information related to switching between networks and devices.
Successful investment and further expansion
The product is successful as it managed to fit in with the major demands of online safety in the last couple of years. Consumer activity and online transactions have grown exponentially, thus, such GDPR-compliant prevention is needed to cover major businesses as well as normal users. Another demand is the need for online protection in the midst of recent Russian sanctions. SEON supports companies like PayPal that have had to remove several million illegal accounts. The agenda and intensity of SEON, regarding specifically targeted cybersecurity threats, is a result of its own research on the risks that internet users most frequently face.
Recently, SEON Technologies moved its headquarters to London. It also received a major investment of 94 million from a private equity investment firm called IVP in a Series B investment this year. According to CNBC, its total value is around 500 million. It employs around 260 people.
The competitors of SEON Technologies may be spotted in the field of fraud prevention, where companies such as NetGuardians, from Switzerland, or Featurespace, from the United Kingdom, seem to lead. However, SEON has achieved a spectacular rise with more improvements to its product from the funding gained. SEON plans to utilize the funding from investors, including Creandum and PortfoLion, and angel investors Coinbase, Wise, and Slack, to expand to the United States, Latin America, as well as parts of Asia.
