ThetaRay

ThetaRay is a technology company.

Active

Updated: Jan 22, 2026 ·

Recent News & Mentions

Sep 1, 2023FundingThetaRay - Series D May 1, 2021FundingThetaRay - Series C Jul 1, 2018FundingThetaRay - Series B Jul 1, 2014FundingThetaRay - Series A Jul 1, 2013FundingThetaRay - Seed

Financial History

ThetaRay has raised $132.0M across 5 funding rounds. Most recently, it raised $57.0M Series D in September 2023.

Total Raised

$132.0M

Valuation

N/A

Funding Rounds Raised

Date	Round	Other Investors
Sep 1, 2023	$57.0M Series D	Germin8 Ventures, Erel Margalit, Jerusalem Venture Partners (JVP), Kli Capital, MTech Capital, Nec Corporation, OurCrowd, Viola Ventures, Oshri Kaplan
May 1, 2021	$31.0M Series C	Germin8 Ventures, Erel Margalit, Jerusalem Venture Partners (JVP), Kli Capital, MTech Capital, Nec Corporation, OurCrowd, Viola Ventures, Oshri Kaplan
Jul 1, 2018	$30.0M Series B	Germin8 Ventures, Erel Margalit, Jerusalem Venture Partners (JVP), Kli Capital, MTech Capital, Nec Corporation, OurCrowd, Viola Ventures, Oshri Kaplan
Jul 1, 2014	$10.0M Series A	Jerusalem Venture Partners (JVP), Kli Capital, MTech Capital, Viola Ventures, Oshri Kaplan
Jul 1, 2013	$4.0M Seed	Erel Margalit, Jerusalem Venture Partners (JVP), Kli Capital, MTech Capital, OurCrowd, Viola Ventures, Oshri Kaplan

Financial History

ThetaRay has raised $132.0M across 5 funding rounds.

Total Raised

$132.0M

Valuation

N/A

Deep Dive

High-Level Overview

ThetaRay is a fintech software company specializing in AI-powered SaaS and on-premises solutions for anti-money laundering (AML) transaction monitoring, sanctions screening, and financial crime detection. It serves banks, fintechs, payment service providers (PSPs), and government Financial Intelligence Units (FIUs), solving the problem of detecting complex, hidden criminal networks and "unknown unknowns" in cross-border and domestic payments that traditional rule-based systems miss[1][2][3]. The platform, including its flagship SONAR product, uses patented Cognitive AI algorithms to reduce false positives by up to 99%, cut investigation times by over 50%, and enable compliant growth—monitoring over $20 trillion in transactions annually for 100+ institutional customers and 1+ billion end-users worldwide, with clients like Santander, Travelex Bank, Payoneer, and Onafriq reporting 30%+ growth in suspicious activity detection[2][3][4][5][7][8].

Origin Story

ThetaRay was founded in 2013 in Hod HaSharon, Israel, by professors Amir Averbuch (Tel Aviv University, big data expert) and Ronald Coifman (Yale University, National Medal of Science recipient for numerical analysis), alongside CEO Mark Gazit, a security expert and serial entrepreneur[1]. The idea stemmed from their patented mathematical algorithms for big data analytics, initially applied to cybersecurity and operational risk before pivoting to AML solutions for financial institutions[1]. Early traction came quickly: seed funding from Jerusalem Venture Partners (JVP) in June 2013, followed by General Electric (GE) investment, and the launch of its Advanced Analytics Platform[1]. Pivotal moments include the 2019 release of version 4.0 with intuitive AI upgrades, Santander's 2019-2020 implementation for cross-border payments, and the 2021 launch of cloud-native SONAR[1].

Core Differentiators

Cognitive AI Technology: Employs unsupervised and semi-supervised machine learning with patented algorithms to mimic human intuition, detecting subtle anomalies across SWIFT traffic, risk indicators, and multi-account networks that legacy systems overlook, achieving 99% accuracy and 50%+ faster investigations[1][2][3][4].
Rapid Deployment and Integration: SaaS model deploys in days with minimal setup, unlike cumbersome rule-based alternatives, enabling quick scaling for heterogeneous ecosystems[3][4][8].
Low False Positives and Actionable Insights: Reduces alerts by minimizing errors, provides dynamic risk profiling (e.g., Client Risk Assessment), real-time screening, and GenAI tools for automated reporting via Microsoft Azure OpenAI[2][4][7].
Proven Scale and Customer Impact: Handles 15 billion transactions yearly, boosts detection by 30%+, and supports growth in high-risk corridors like Africa (e.g., Onafriq deployment in under 3 months with 83-94% alert quality)[3][5][8].

Role in the Broader Tech Landscape

ThetaRay rides the wave of AI-driven RegTech amid surging global AML regulations, rising cross-border payments (e.g., via fintechs and PSPs), and the limitations of first-generation rule-based compliance tools that generate excessive false positives[1][2][3]. Timing is ideal as financial crime evolves with digital assets and complex networks, while regulators demand proactive detection—ThetaRay's post-2021 innovations like SONAR and GenAI align with this, helping banks like Santander expand safely without de-risking[1][5][7]. Market forces favoring it include fintech growth, cloud adoption, and partnerships (e.g., Microsoft), positioning ThetaRay to influence the ecosystem by setting benchmarks for efficient, accurate compliance that unlocks revenue in emerging markets[3][4][8].

Quick Take & Future Outlook

ThetaRay is poised to dominate AI-AML with expansions in GenAI risk catalogues, screening acquisitions, and integrations like Microsoft Azure, targeting more PSPs and FIUs amid tightening scrutiny[7]. Trends like real-time payments, decentralized finance risks, and AI regulations will shape its path, potentially driving acquisitions or IPO as it scales beyond $20T monitored volume. Its influence may evolve from niche innovator to ecosystem standard, empowering global finance to "thrive without limitations" by turning compliance into a growth engine[3].

Sources

Frequently Asked Questions

How much funding has ThetaRay raised?

ThetaRay has raised $132.0M in total across 5 funding rounds.

Who are ThetaRay's investors?

ThetaRay's investors include Germin8 Ventures, Erel Margalit, Jerusalem Venture Partners (JVP), Kli Capital, MTech Capital, Nec Corporation, OurCrowd, Viola Ventures, Oshri Kaplan.