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Contxto – Cybersecurity startup Mati recently raised an equity round with Spero Ventures. Other contributors included Kima Ventures, Dorm Room Fund, and Blackhorn Ventures. However the value of the seed investment was not disclosed.
Though it started out in California, Mati moved to Mexico City after seeing a large market opportunity in Latam.
“It has been the perfect petri dish for us: the markets here, especially in Mexico, Brazil, and Colombia, are very exciting. These countries have the highest payments fraud rates in the world, which makes their identity issues the most interesting.”
Rightly so, one startup’s fraud problem is another’s business opportunity.
The cybersecurity startup will use the funding to improve its product and grow throughout the region.
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Mati and cybersecurity to take center stage
The rise of fintechs and the corresponding regulatory framework for it in Latin America is drawing a lot of buzz in the form of investments, banking API startups—and fraud.
And though they’re not as flashy as consumer-facing enterprises, B2B security startups are just as important. Moreover, they’ll have a bigger role to play in the near future. As users increasingly explore fintech products and e-commerce, the higher the risks of a data breach, fraud, money-laundering, and every other form of online crime.
When these incidents happen, public pressure mounts on authorities to further regulate the industry. Similarly, startups and fintechs that want growth and credibility need security.
To add to this “petri dish,” users in Latin America tend to be careless in their online habits, which only makes them easier prey for cybercrime.
It’s within this context that Mati finds its market. Entrepreneurs Filip Victor and Amaury Soviche founded their startup in 2016.
Since then, Mati works to verify users’ identities through computer vision technology. It also taps into government databases to run background checks. These types of services are critical for e-commerce marketplaces, fintechs, and even HR departments when evaluating a potential job candidate.
But without a doubt, the biggest role Mati and other cybersecurity startups play is building trust between end-users and digital solutions.
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