Red Points, the leading company in detecting and eliminating intellectual property infringement on the Internet, announced that it has closed a financing round of $38M that takes the company’s total capital to $64M, consolidating its global position in brand protection on the Internet.
The round was led by Summit Partners, with participation from already existing investors: Northzone, Mangrove, Eight Roads Ventures and Banco Sabadell. “Brands have never been as vulnerable to falsification, piracy and distribution fraud as they are now”, said Laura Urquizu, partner Managing Director of Red Points.
“This growing threat makes it impossible for companies to effectively protect their products without complete visibility of the presence of their brand on the Internet. This Summit Partners investment round will contribute to strengthening the position of Red Points as the global leader tackling the growing problem of infringement against brands on the Internet. With this new investment, we plan to continue developing our technology and global presence with the objective of empowering brands around the world to protect their products on the Internet”.
The continuous growth of worldwide electronic commerce has spurred a rapid increase in falsification on the Internet, highlighting the need to detect infringement that damage intellectual property.
The International Chamber of Commerce estimates that the global value of falsifications and piracy could amount to $4.2 billion in 2022 and put 4.2 million legitimate jobs at risk during that period.
Red Points’ technology powered by artificial intelligence adopts a holistic approach to brand protection and provides complete visibility of the different types of infringement negatively affecting the reputation of the company in black, gray and white markets and offers real-time and more complete protection of a company’s intellectual property assets.
The Red Points platform uses artificial intelligence to connect a web tracker directed to a database of rights based on the rules it learns from the record of each client and improves the level of protection with time.
The software patented by Red Points currently eliminates more than hundreds of thousands of illegal products and content on the Internet every week, on more than 100 ecommerce and social media websites.
More than 550 brands are already using the Red Points solution around the world, including Bang & Olufsen, MVMT and DOPE. As a result of its successful expansion, the company’s growth rate exceeded 100% in 2018.
“Brands all over the world are faced with an unprecedented increase in intellectual property infringement on the internet. Red Points is the leader in its field, given that it offers an intelligent and solid technological platform designed specifically to tackle this growing problem” said Steffan Peyer, the Summit Partners director.
“Thanks to its disruptive technology and solid leadership team, we believe that Red Points is well positioned to accelerate its growth and further consolidate its leadership in the brand protection market”.
Red Points increased its brand protection offer on its platform last year with the launch of a new vendor tracking solution that uses cutting-edge technology to help brands all over the world obtain better visibility of the activities of their partners on the Internet.
The company also increased its global presence by opening its US headquarters in New York.