Signifyd is among the top tier of the fastest growing technology companies in North America, Deloitte announced today, as it released findings from a comprehensive analysis of the tech landscape.
The firm’s “2018 North America Technology Fast 500” report ranked Signifyd No. 20 in terms of revenue growth over the past three years. The company, which is the world’s leading provider of guaranteed fraud protection, posted a revenue increase of 6,417 percent over the period Deloitte analyzed.
“Congratulations to the Deloitte 2018 Technology Fast 500 winners on this impressive achievement,” said Sandra Shirai, vice chairman, Deloitte LLP and U.S. technology, media and telecommunications leader. “These companies are innovators who have converted their disruptive ideas into useful products, services and experiences that can captivate new customers and drive remarkable growth.”
Deloitte’s analysis reflects the power of software — and particularly software as a service — in today’s economy. Fourteen of the top 20 fastest-growing companies were in the software category and 64 percent of those listed overall were software companies — a 6 percent increase year-over-year.
In Signifyd’s case, its ranking is another indication of the ongoing digital transformation in the ecommerce industry. Upstart, startup retailers are succeeding by building ecommerce tech stacks comprised of third-party vendors who provide infinitely scalable ways to conduct the fundamental operations of their businesses without assembling large workforces or locking themselves into expensive proprietary systems.
Guaranteed fraud protection is a building block of successful ecommerce
Venture capitalist Mary Meeker famously described the model in her 2018 Internet Trends Report. One of the building blocks to successful ecommerce that she highlighted was guaranteed fraud protection, a model that Signifyd has brought to 10,000 customers operating around the world.
Meantime, legacy retailers, who’ve honed their omnichannel capabilities for years, are looking to borrow some moves from the disrupters, known generally as digitally native retailers, to raise the quality of the customer experience they provide. To do so, they are turning to some of the same tech vendors to future-proof their businesses.
Deloitte’s finding is another validation of the guarantee model, which combines big data, machine learning and a financial liability shift to help ecommerce businesses provide their customers with a friction-free buying experience.
“We are proud and gratified to see that Deloitte’s research has recognized the progress we have made in helping ecommerce enterprises provide their customers with a better buying experience,” said Raj Ramanand, Signifyd’s CEO and co-founder. “We’ve had a phenomenal year in terms of technological progress, validation from investors, customer acquisition and acceptance in the market. But really it’s about helping our customers succeed and we look forward to continually upping our game in that regard.”
The Deloitte ranking builds on momentum for both Signifyd and for guaranteed fraud protection as the modern model for fraud management in ecommerce. In the past year, Signifyd doubled its number of customers and announced a $100 million round of funding led by Premji Invest. It opened offices in Barcelona and London.
The company was named a Cool Vendor in Gartner’s 2017 “Security for Midsize Enterprises” report and within the past two years formed partnerships with Salesforce Commerce Cloud, Magento, BigCommerce, Accertify and ThreatMetrix. Besides being named to the Forbes FinTech 50 and included among Bloomberg’s 50 Most Promising Startups, Signifyd has been listed as having a Top Company Culture by Entrepreneur. The company was also recently named to Inc. Magazine’s Best Workplaces for 2018 and recognized by the San Francisco Business Times and Silicon Valley Business Journal as one of the Bay Area’s Best Places to Work.
Guaranteed fraud protection tackles the challenge of false positives
The company’s success is also driving the adoption of guaranteed fraud protection, a significant upgrade to rules-based fraud tools and systems that rely heavily on cumbersome manual reviews. Guaranteed fraud protection models are able to sift through orders and render ship or no-ship decisions in milliseconds. They also all but solve the challenge of false positives — or the practice of incorrectly declining legitimate orders based on the fear of fraud.
It’s a problem that is generally more costly than chargebacks from fraudulent orders, but Signifyd’s model tames false declines by creating a control group and a false positives feedback loop. The system works by purposely approving for shipping some orders that appear to be fraudulent. If the orders are indeed fraudulent, that reinforces the model’s decision-making and the merchant is protected by Signifyd’s guarantee.
If, however, the order was in fact legitimate, the model learns from the transaction. The process prevents Signifyd’s fraud-protection model from becoming more conservative over time.
It’s all part of an overall fraud-prevention model that the market is clearly embracing. Deloitte’s research and Signifyd’s No. 20 spot on the list of its North America Technology Fast 500, are sure signs of that.