$9.5M Raised to Protect Banks and Fintech from Fraud

Welcome to The SaaS CFO Podcast, where we dive into the world of SaaS companies and their financial strategies. In this episode, our host Ben sits down with Ravi Sandepudi, co-founder and CEO of Effectiv, a fraud detection software company. Ravi shares his fascinating journey, from his time at Google and the acquisition of his previous startup by PayPal, to the founding of Effectiv.  

Ravi provides valuable insights into the world of fraud detection within mid-sized financial institutions, including credit unions and community banks. He delves into the challenges these institutions face and how Effectiv's platform is designed to address their specific needs. Ravi also discusses the company's go-to-market strategies, funding journey, and future plans for growth and innovation. 

Tune in as Ravi shares his experiences, lessons learned, and his vision for the future of Effectiv. If you're interested in the intersection of finance, technology, and entrepreneurship, you won't want to miss this episode. 

Show Notes: 

00:00 Started career at Google, worked in fraud and risk. Joined startup Simility, acquired by PayPal. Worked in PayPal's risk team, built new products. 

05:39 System integrates with banking, assesses risks and adds friction when necessary. 

08:09 25-person remote team operates real-time fraud platform for 24/7 transactions. 

09:51 We serve mid-sized fintechs and work closely with credit unions and community banks. Initially challenging, now collaborative partnerships. 

13:54 Combining variable and fixed SaaS pricing for predictability and customer budget approval. 

17:16 Company waited for customer commitment before raising money to avoid potential pitfalls. 

22:42 Emphasize discipline, pivot to existing customer upselling, and learn from quick actions. 

23:59 Maintaining controlled burn, aiming for 5 million, considering profitability vs growth. 

27:25 Company presence on LinkedIn and Twitter for fraud platform. Contact Ravi at Effectiv AI. 

Links:  

SaaS Fundraising Stories: https://www.thesaasnews.com/news/effectiv-raises-4-million-in-seed-round 

Ravi Sandepudi’s LinkedIn: https://www.linkedin.com/in/sandepudi/ 

Effectiv Ai’s LinkedIn: https://www.linkedin.com/company/effectivai/ 

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