Bot attacks, automated cybersecurity intrusions that mimic human behavior at scale, are growing in intensity, frequency, and complexity. In fact, its estimated that 27.7% of all online traffic is attributable to malicious bots that are looking to take nefarious and disruptive actions like account takeovers, scraping, form and API abuse, and payment fraud that leave enterprises vulnerable. DataDome is a SaaS platform focused on detecting and preventing bot attacks and online fraud for the enterprise. The company uses a proprietary machine learning engine to assess internet visits in real-time (less than 2 milliseconds) by using 3M+ signals to protect attacks on apps, websites, and APIs with 99.99% accuracy. DataDome is trusted by 300+ organizations like ZocDoc, Foot Locker, Rakuten, Reddit, Asus, Tripadvisor, and McDonalds; last year the company stopped 250B+ online fraud attempts.

AlleyWatch caught up with DataDome CEO and Founder Benjamin Fabre to learn more about the business, the companys strategic plans, latest round of funding, and much, much more

Who were your investors and how much did you raise?This is a Series C funding round of $42M. This round was led by InfraVia Growth, with participation from existing investors Elephant, ISAI, and others, to support DataDome on its mission to rid the web of bot-driven cyberattacks and fraud.

Tell us about the product or service that DataDome offers.DataDomes solution helps protect websites, mobile apps, and APIs from automated cyber attacks and online fraud. With machine learning at the edge and a 24/7 threat intelligence team, we prevent bot-driven fraud, including fake account creation, account takeover, credential stuffing, and more. DataDome detects and responds to sophisticated attacks with unparalleled speed and accuracy without ever compromising the consumer experience. Our AI-powered bot detection engine processes more than 3 trillion signals every day to protect the largest global online enterprises in real-time.

What inspired the start of DataDome?I founded DataDome in 2015 with my long-time business partner Fabien Grenier. Were serial entrepreneurs and both had long track records in scalable web infrastructures, AI-powered data stream processing, SaaS technologies, digital strategy, and cybersecurity.Working with digital companies in previous jobs, Fabien and I noticed that most were unable to detect and block even the simplest of bots, which ultimately exposed their vulnerabilities to fraudsters. We saw a need for a solution that could block automated online threats, but in a different way. We needed to depart from the usual approach; static rules, no matter how quickly updated, would always be a step behind.We made a key decision to build ML at the edge to assess every request to a website, mobile app or API. It was a significant challenge to do this in real time without impacting the end-users experience. But we ultimately achieved what we set out to do. Since we founded the company, the level of bot sophistication and the numerous pains they inflict, have skyrocketed. Our decision to deviate from business as usual is what helped propel DataDome into a leadership position.

How is DataDome different?There is often a tradeoff between speed and accuracy among other bot and online fraud protection providers. Not with DataDome. Unlike other solutions, DataDome detects and responds to attacks with unparalleled speed, accuracy, reliability, and expertise using machine learning monitored by our in-house Security Operation Center (SOC) to stop fraud before it happens. In other words, we provide automated detection with 24/7 adult supervision.We also offer the most integrations, the greatest transparency, and a uniquely consumer-focused approach. Getting more granular:

What market does DataDome target and how big is it?Any business with an online presence, regardless of industry, needs online fraud and bot protection. 50% of online traffic is made up of bots, which cybercriminals use to target online businesses with fraud and other attacks. Theres no denying bots (which are growing more advanced by the second to bypass security measures) disrupt digital business operations, and put data security and CX at risk; just ask retailers about the Sony PS5 launch, or major brands like TicketMaster and Nike, which recently made headlines in their fight against bots.We know that online businesses are bearing the consequences of automated cyberattacks and online fraud, and its a costly situation to be stuck in. Enterprises need a cybersecurity solution that puts them back in the drivers seat and empowers them to fight fraud. Thats what were here to do. In 2022 alone, we stopped over 250 billion fraud attacks!300+ enterprises worldwide trust DataDome, across industries like e-commerce, media, travel, ticketing, healthcare, and local governments. We empower them with the data they need to go on the offense against online fraud. Its a win for everybody except for fraudsters and threat actors.

300+ enterprises worldwide trust DataDome, across industries like e-commerce, media, travel, ticketing, healthcare, and local governments. We empower them with the data they need to go on the offense against online fraud. Its a win for everybody except for fraudsters and threat actors.

Whats your business model?

SaaS with services.

How are you preparing for a potential economic slowdown?We have always invested in delivering the best solution to keep our customers safe from bots and online fraud. As a result, weve enjoyed an extremely high customer retention rate (98%) and new customer acquisition rate (over 100% year-on-year in the US). Our solution proves essential for digital businesses. Not only does it help our customers mitigate risks, it also positively impacts their bottom line; we help reduce fraud costs by 95% and significantly contribute to cloud cost optimization.

What was the funding process like?

Truth be told, we werent looking to raise funds at this time. But InfraVia shares our vision of bot mitigation as the foundation for online fraud prevention, which made for a compelling case!

What are the biggest challenges that you faced while raising capital?We are fortunate to have demonstrated significant growth with very responsible cash efficiency. So fundraising was a matter of finding the right partner for our next phase of growth, which we did in InfraVia. Were also very grateful to continue to receive the support of our earlier investors, who share into our vision for the market.

What factors about your business led your investors to write the check?As Guillaume Santamaria, Partner at InfraVia (who led this funding round) said, We were genuinely impressed by the sophistication of DataDomes solution, as well as the companys growth trajectory, especially in the US. DataDome perfectly embodies our commitment to growth technology companies, and we fully endorse the teams vision of bot management as a foundation for fighting online fraud. We are very much looking forward to the next phase of DataDomes evolution and global scale.

What are the milestones you plan to achieve in the next six months?We will continue to put all of our effort behind stopping fraud in its tracks, which means blocking even more online fraud attempts than we did in 2022. We are also working on some new products I am particularly excited about, and I would be happy to brief you when we get closer to their launch!

We will continue to put all of our effort behind stopping fraud in its tracks, which means blocking even more online fraud attempts than we did in 2022. We are also working on some new products I am particularly excited about, and I would be happy to brief you when we get closer to their launch!

What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?Every situation is different, but customer centricity is core to success in my opinion: Are you solving a major pain point for your customers? Are you doing it better than other providers on the market? Are you demonstrating value from day one? After all, growth is driven by customer adoption!Where do you see the company going now over the near term?Because online fraud is such a massive, looming threat and a growing market we intend to focus on global commercial rollout, and R&D efforts to ensure our solution maintains its award-winning competitive edge, and stays well ahead of bot developers and fraudsters.

Wheres the best place to hold a team offsite in the city?

Were a global company and are fortunate to be able to connect with our colleagues at offsites abroad.

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