News Byte: Venture Funds Bet Against Bots
Bucks to battle the bots.
Mdotlabs, a provider of security software for online advertising, announced it closed a first round of funding of $1.25 million from Chicago Ventures and Great Oaks Venture Capital today. The company, whose products help prevent fraudulent Internet activity that often goes undetected, was spun off from Broadcast Interactive Media.
“The types of fraud are evolving and changing very quickly, which is why we've taken a security systems approach to what is essentially an arms race,” says Mdotlabs Chief Scientist Paul Barford. “Our research and resulting technical papers show that fraudulent impressions are estimated to account for 20 to 30% of overall online ad traffic."
Saying that “bots are costing advertisers and publishers billions of dollars a year,” Great Oaks Managing Partner Andrew Boszhardt Jr., noted that his company forecasts huge growth for the internet fraud security business.