Pindrop secures $100 million to further develop its audio, voice, and AI technologies

Pindrop announced it has secured $100 million in debt financing from Hercules Capital. This significant funding will enable Pindrop to further develop its audio, voice, and AI technologies, enhancing its offerings for customers in the banking, finance, contact center, insurance, utilities, healthcare, retail, and other industries.

Contact centers, which play a crucial role in these sectors, are becoming increasingly vulnerable as cyberattacks grow more sophisticated. As a result, contact center fraud has surged by 60% in the last two years, reaching the highest levels since 2019. By the end of this year, one in every 730 calls to a contact center is expected to be fraudulent. Posing an estimated $5 billion fraud risk to U.S. contact centers, voice authentication solutions are imperative in keeping a company secure.

On a mission to shape the future of voice security and authentication against the rising threats mainly caused by generative AI, Pindrop’s technologies help organizations to detect fraudsters and authenticate genuine customers at scale.

To date, Pindrop has analyzed 5.3 billion calls, prevented $2 billion in fraud losses, and detected 104 million spoof calls. Dedicated to leveraging good AI to combat bad AI, Pindrop is making significant strides in the fight against deepfakes.

“We’re pleased to secure this financing with Hercules Capital at such a pivotal moment for Pindrop,” said Pindrop CEO, Vijay Balasubramaniyan. “This funding will fuel our ongoing growth and innovation in voice and AI technologies. As cyber threats continue to evolve, our mission to stay ahead of fraudsters and protect our customers is more critical than ever. We’re excited about the future as we remain committed to driving advancements that safeguard major institutions and deliver unparalleled security in the digital age.”

John Chambers, Pindrop Investor and Board Member, CEO of JC2 Ventures, and former Executive Chairman and CEO of Cisco, added, “In December 2023, I predicted that deepfakes would be the #1 issue for companies and countries alike in 2024, which has been extremely accurate. In my career, I have had the opportunity to help position companies to lead in these big market transitions, and I can say with confidence that Pindrop is uniquely positioned to do just that with their revolutionary voice security and authentication technology.

“What’s more, they developed their product in a matter of months, brought it to market, and secured their first five or six references the very next quarter. The entire VC group on their Board of Directors immediately invested in this effort and, under Vijay’s leadership, Pindrop will achieve the fastest run rate to $5 million in an entirely new product area by an existing company, compared to any other company I have seen. This new investment from Hercules Capital comes at a pivotal time for Pindrop, enabling them to further develop their cutting-edge audio, voice, and AI technologies and enhance their offerings for customers in the banking, finance, contact center, and insurance industries.”

Earlier this year, Pindrop notably identified the Text-to-Speech (TTS) engine used in the President Biden robocall attack urging New Hampshire voters not to vote during the Democratic primaries. As AI’s impact on this year’s election drew more attention from legislators and regulators. Pindrop has been honored to have its CEO participate in the US Senate Forum On AI, the Attorneys General Spring Symposium, and the House Financial Services Committee’s Bipartisan AI Working Group Roundtable.

This announcement follows several key milestones for Pindrop:

• The release of Pindrop Pulse, an innovative audio deepfake detection solution offering real-time identification, monitoring, and analysis of audio deepfakes with advanced liveness detection technology.
• The launch of its 2024 Voice Intelligence and Security Report, which provides an in-depth analysis of the current fraud and security landscape while highlighting future trends and new prevention techniques.
• The debut of the Pulse Deepfake Warranty, a pioneering warranty that reimburses eligible customers if the Pindrop Product Suite fails to detect a deepfake or synthetic voice fraud, offering peace of mind and maintaining cutting-edge defense against evolving cyber threats.

“Hercules is incredibly excited to partner with Pindrop as they continue working to transform the AI and voice authentication landscape,” said John Eggbeer, Managing Director, Hercules Capital. “We’re proud to support their mission of safeguarding major institutions from rising cyberattack threats. This financing will help accelerate their growth and innovation, enabling them to expand their reach and enhance their capabilities in providing robust security solutions.”

Pindrop continues to lead the way in voice authentication and security, ensuring robust protection against fraud and enhancing the safety of digital interactions for its customers.