Madrid-based cybersecurity startup buguroo has raised $11m in a Series A funding round, enabling it to expand its deep learning-based tools and expand its products to new markets.

The funding round was led by Ten Eleven Ventures, a venture capital firm focusing on the cybersecurity industry, and Seaya Ventures, a venture capital firm focusing on companies in Spain and Latin America.

Additional funding was also provided by existing investors Inveready Technology Investment Group and Conexo Ventures.

The company plans to use the money to expand on its existing presence in Europe and Latin America, where it currently has 50 million customers in the financial services industry. This will see it focus sales and marketing efforts on the US, the UK and Germany.

Buguroo will also focus on expanding on its flagship product Fraudster Hunter, which uses deep learning to identify victims who have been hit by fraud but are unaware of it, identify methods used by fraudsters and expose fraud scenarios.

The product is designed to help financial services companies identify and prevent fraud, and with the investment buguroo hopes to expand its capabilities further.

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By GlobalData

“With focused, regional investment in sales and marketing, we have proven the power of our solution,” said buguroo founder and CEO Pablo de la Riva.

“We are thrilled to have the support of our new investors, who are enabling us to continue to bring this best-in-class solution to banks around the globe and accelerate our mission of continuous innovation in online fraud detection.”

Use of AI key to buguroo investment

Venture capital investors are often keen to invest in technologies based on artificial intelligence (AI), and buguroo’s use of deep learning, often considered to be a subset to AI, appears to have been a key draw.

“Ten Eleven Ventures is pleased to back another exciting new team using artificial intelligence to transform cybersecurity,”

“Pablo and the buguroo team are talented innovators who have found a unique way to use AI to reduce online fraud. We are so impressed with the customer traction they have in Europe and Latin America. We look forward to helping them build a global cybersecurity company.”

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