Red Points announced today that it has closed $38 million in funding, bringing the company’s total capital raised to $64 million. The round was led by Summit Partners, with additional participation from existing investors Northzone, Mangrove, Eight Roads Ventures and Banco Sabadell.
The continued growth in global ecommerce has driven an acceleration in online counterfeiting, shining a bright light on the need for IP infringement detection. The International Chamber of Commerce estimates that the global economic value of counterfeiting and piracy could reach $4.2 trillion by 2022 and put 5.4 million legitimate jobs at risk over that time period.
Red Points’ platform leverages artificial intelligence to continuously connect a targeted web crawler to a rules-based rights management database that learns from each account’s history and improves the level of protection over time. Red Points’ proprietary software currently removes hundreds of thousands incidents of illegal products and content from the web monthly, across over 100 online marketplaces and social networks. Red Points’ solutions are used by over 550 brands worldwide including Bang & Olufsen, MVMT and DOPE. As a result of its successful expansion, the company’s growth rate exceeded 100% for 2018.
“Brands around the world are facing an unprecedented rise in online IP infringement. Red Points is a category-leader, offering an intelligent and robust technology platform that is purpose-built to address this growing pain point,” said Steffan Peyer, Principal at Summit Partners. “With differentiated technology and a strong leadership team, we believe that Red Points is well positioned to accelerate its growth and further solidify its leadership in the Brand Intelligence market.”
Red Points expanded the brand protection offering on its platform last year with the launch of a new seller tracking solution and with the opening of their US headquarters in New York.