START-UP technology firm Payfont has raised more than £1.1 million from private investors in a funding round which it said values the company at £20m.
The Edinburgh-based cybersecurity and online identity protection firm opened its latest funding round three weeks ago and the total pledged is believed to be one of the highest figures raised by a technology start-up in Scotland.
Chief executive David Lanc, a former senior executive at Royal Bank of Scotland’s cards business, said the strong support indicated growing investor awareness of the global online fraud problem and of the innovation Payfont has pioneered.
He added: “I am delighted with the response from our investors. Their support will help us massively in bringing Payfont’s product to market.”
Lanc said yesterday that the firm has developed the “easiest and safest way in the world” for people anywhere to protect their private and personal information online.
Payfont claims its authentication technology overcomes weaknesses in online security systems used by major card, bank and social network businesses.
The company will use the funding, which follows a recent £100,000 UK innovation award via Scottish Enterprise, for further development work and to market its products globally.
The fundraising was led by fund management veteran Ian Paterson Brown, who said: “We had great support from our original investors, who followed through with an increased investment. They are joined on our journey by a new group of private investors who also clearly recognise the company’s potential.”
Payfont is already in talks with a number of organisations in the UK, the US and Europe.
Figures released recently by the UK Card Association indicate online and “not present” card fraud has increased 23 per cent in the first half of 2014 and there have been a number of high-profile customer data breaches at major global technology giants including Adobe, Apple and Ebay.