Cybersecurity startup Innerworks has successfully raised €3.7 million in seed funding to enhance its AI-driven fraud detection technology. The funding round was spearheaded by AlbionVC, with contributions from Digital Currency Group, Founders Capital, Firestreak Ventures, NVTBL Ventures, Metaversal Ventures, and senior executives from major companies such as Citi, UBS, Coinbase, Checkout.com, Apple, and Crypto.com.
Established in 2020 by Oliver Quie, Oscar Hayek, and Tom Ryan, Innerworks has developed a security platform capable of identifying synthetic, AI-generated interactions with an impressive 97% accuracy. The platform has been tested in national infrastructure defense, partnerships with significant digital asset platforms, and investigations into major cryptocurrency breaches.
The newly acquired capital will be utilized to expand the platform, enhance its reach, and bolster defenses against sophisticated AI-led cybercrime. Innerworks aims to be a crucial security layer for the internet, likening its technology to an “immune system” for digital environments.
In 2024, bot-driven attacks resulted in an estimated €184 billion in losses, while deepfake-related fraud attempts have surged by over 2,000% since 2022. Innerworks’ platform effectively differentiates genuine human behavior from AI-driven imitations, addressing one of the most rapidly growing online threats.
A key component of Innerworks’ solution is RedTeam, a crypto-bounty program that recruits ethical hackers and AI agents worldwide to identify and expose system vulnerabilities. This approach provides real-world data to refine defenses, and the solution integrates seamlessly with client applications, operating discreetly in the background. It has already been instrumental in uncovering malicious activity linked to a €1.38 billion hack attributed to North Korean operatives.
CEO Oliver Quie emphasized the challenge of AI-powered deception that can closely mimic legitimate users. He stated that existing security companies have become outdated due to their assumptions about threat behavior. Innerworks’ platform addresses this issue by employing Synthetic Threat Intelligence and decentralized training to counter even the most advanced AI-based attacks. Having demonstrated their approach with global brands, Innerworks is poised to become a foundational security component for the broader internet, safeguarding user ecosystems online.
