Innerworks, a cybersecurity startup specialising in Synthetic Threat Intelligence, has raised €3.7m ($4m) in a seed funding round aimed at expanding its AI-powered fraud detection platform.
According to EU Startups, the round was led by AlbionVC, with backing from Digital Currency Group, Founders Capital, Firestreak Ventures (Walter Kortschak), NVTBL Ventures, Metaversal Ventures, as well as executives from Citi, UBS, Coinbase, Checkout.com, Apple, and Crypto.com (Cronos).
Founded in 2020 by Oliver Quie, Oscar Hayek and Tom Ryan, Innerworks has developed technology capable of detecting AI-generated synthetic interactions with 97% accuracy. The platform has been used in a range of critical scenarios, including protecting national infrastructure, supporting digital asset platforms, and investigating some of the largest cryptocurrency hacks ever recorded.
The fresh capital will be used to further develop the company’s fraud detection capabilities and support expansion, positioning Innerworks as a key player in defending against increasingly sophisticated AI-based threats.
Innerworks has already deployed its platform in live environments, including the detection of malicious activity linked to a €1.38bn hack attributed to North Korean operatives. The company also runs RedTeam, a crypto-bounty programme enlisting ethical hackers and AI agents to stress-test the system and strengthen its defences with real-world data.
CEO Oliver Quie said, “We’re facing AI-powered deception that can mimic legitimate users with frightening accuracy. Existing security companies have become obsolete because they assume threats will behave differently than legitimate users. Our platform solves this problem using Synthetic Threat Intelligence and decentralised training to defend against even the most sophisticated AI-based attacks.”
He added, “Having now proven our approach alongside global brands, we feel Innerworks is well-positioned to become core security infrastructure for the wider internet, helping to protect user ecosystems online.”
The company highlights a growing need for advanced fraud detection as nearly €184bn was lost to bot-related attacks in 2024, with deepfake-driven fraud attempts rising more than 2,000% since 2022. Innerworks believes its platform could become what it describes as “the internet’s immune system”, seamlessly distinguishing between authentic human behaviour and AI-generated imitations.
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