Featurespace, a Cambridge, UK-based behavioural analytics business, completed a £3m funding round.
Backers included Imperial Innovations Group plc (AIM: IVO),which invested £1.7m and now holds a 22.1% equity stake (fully diluted) in Featurespace, Nesta and a number of members of the Cambridge Angels group, including Dr Mike Lynch (former CEO and Founder of the Autonomy) and Andrew Hodson.
The company intends to use the funds to further expand its customer base across various market sectors.
Led by Martina King, CEO, Featurespace is developing data analysis “Adaptive Behavioural Analytics” to predict what an individual or group will do next, based on an understanding of normal patterns of behaviour.
The company has developed a behaviour analytics engine (ARIC) – based on Bayesian statistics and research undertaken at Cambridge University by Professor Bill Fitzgerald and Featurespace CTO, David Excell – that allows the real-time tracking of both individual and group behaviour by using advanced proprietary algorithms to exploit the vast amounts of customer interaction data that many companies collect, to deliver insights that can help to detect and prevent fraud, and prevent customer churn.
Featurespace’s Churn Protector uses real-time analysis of customer data for the early detection of behaviour symptomatic of churning, thereby helping organizations to take corrective action and retain each of their customers through individualised targeted marketing campaigns.
The company has closed deals for its fraud detection product with Zapp/Vocalink (leading provider of payment systems), Callcredit Information Group (experts in consumer information management) and Betfair (online gaming).