IVIX Secures $13M Seed Funding, Unveils Technology Platform to Combat Shadow Economy
Allows tax authorities to automatically analyze data to identify large-scale infringement in a highly accurate, resource-efficient manner
NEW YORK and TEL AVIV, Israel, July 14, 2021 /PRNewswire-PRWeb/ -- IVIX, the first technology platform purpose-built to combat the shadow economy, today announced it has closed a $13 million seed funding round, led by Team8 with participation from Citi Ventures, Cardumen Capital and private investors.
Global tax evasion is around $20 trillion annually, resulting in $6 trillion annually in lost revenue. IVIX closes the tax gap by enabling tax authorities around the world to reduce widespread evasion effectively. The company develops tailored technologies that automatically analyze public data sources to identify in-scale tax evasion. This allows tax authorities to utilize their resources more efficiently, increase collection, and promote deterrence.
Matan Fattal, CEO and co-founder of IVIX, said: "We are delighted to have closed our seed funding round, led by Team8 Capital. Clients across different geographies have told us time and again that the IVIX platform is a game-changer. Our ability to scale combined with our accuracy rate that exceeds 98% is transforming authorities' ability to deter tax evasion, increase compliance and level the playing field."
The seed financing will allow IVIX to grow exponentially, mainly in the areas of sales and marketing.
Sarit Firon, Managing Partner at Team8 Capital, said: "We are very excited to invest in IVIX, the first purpose-built, tech-led platform designed to illuminate the shadow economy. There is no similar company in this space. IVIX's tailored algorithms and collection capabilities allow tax authorities to automatically detect an entity's activities to ensure accurate assessment of tax liability."
The IVIX platform offers a powerful alternative to the manual processes, limited in-house tools and non-specialist vendor solutions in use today. Its AI-driven platform can efficiently analyze tax authorities' internal data and scour publicly available information to identify tax evasion and fraud. The technology can be used to target large-scale fraud, for example, and satisfies stringent global fiscal standards in relation to security, confidentiality and privacy.
Already deployed in several OECD countries, IVIX has allowed authorities to quickly and accurately identify a significant number of tax infringements, including verticals where nearly 50% of businesses were not reporting income.
Ornit Shinar, Head of External Innovation and Ventures Investments in Citi Israel, said: "IVIX's technology and approach supports governments' efforts to identify tax evasion and fraud and we see significant opportunity in the space. We have worked with the co founders and their team in the past, investing in their development of groundbreaking technologies and look forward to working with them once again."
Fred Goldberg, Former IRS Commissioner, IRS Chief Counsel, and Assistant Security Tax Policy. Currently, Of Counsel, Tax, Skadden, Arps, Slate, Meagher & Flom LLP & Affiliate, and Advisor to IVIX, said: "IVIX is a leader among those paving the way forward, empowering tax authorities with tools to help battle tax fraud and promote compliance."
Don Fort, Director of Investigations at Kostelanetz & Fink, LLP, immediate past chief of the Internal Revenue Service's Criminal Investigation (CI) Division and advisor to IVIX, said: "IVIX is filling a necessary gap in tax administration data collection and analytics. Using public information to specifically hone in on the shadow economy is an essential element of using data analytics to combat tax non-compliance at the federal, state, local and international level. The flexibility and adaptability of this product will likely yield a quick return on investment."
Eric Hylton, National director of compliance at alliantgroup, former and IRS commissioner, small business/self employed division and IVIX advisor, said: "IVIX's superb technological platform allows tax administrations globally an opportunity to develop a laser-focused strategy to address emerging issues of tax non-compliance."
Matan Fattal, IVIX CEO and co-founder, was previously co-founder and CEO of Silverfort, a leading cybersecurity company. Prior to that, he spent a decade in R&D roles including at Intucell (acquired by Cisco), where he built enterprise products. Fattal began his career in the 8200 elite cyber unit of the Israel Defense Forces, where he received the unit's excellence award.
Doron Passov, IVIX CPO and co-founder, was previously a senior product manager at Gita Technologies, where he built successful cybertech products that were deployed around the world. He also worked at Claroty (a Team8 portfolio company) as a cybersecurity consultant. Prior, Passov served in an elite technology intelligence unit of the Israel Defense Forces.
IVIX is a graduate of the AI for Good acceleration program led by Microsoft for Startups in Israel, aims to help purpose-driven ventures advance their AI solutions to create positive social transformation. The AI for Good acceleration program is part of the global MS AI for Good initiative, a $165 million commitment. Led by Raz Bachar and Meital Shamia, the program is a joint venture of Microsoft for Startups Israel and TechForGood. IVIX continues to work closely with the Microsoft Global Startups Team as a co-sell partner to expand their customers' footprint.
Advisors to IVIX include:
Kevin Brown, Leader of PwC U.S. Tax Controversy Team, PWC
Don Fort, Director of Investigations at Kostelanetz & Fink, LLP, and the immediate past Chief of the Internal Revenue Service's Criminal Investigation (CI) Division
Fred Goldberg, Former IRS Commissioner, IRS Chief Counsel, and Assistant Security Tax Policy. Currently, Of Counsel, Tax, Skadden, Arps, Slate, Meagher & Flom LLP & Affiliate
Eric Hylton, National Director of Compliance at alliantgroup and IRS commissioner, small business/self employed division
Avishai Shahar, Senior Counsel, Davis Polk
Beth Tucker, Managing Director, Tax Controversy and Regulatory Services, PwC
Private investors include:
Vikram Pandit, former CEO of Citi
Tom Glocer, former, CEO, Thomson Reuters
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About IVIX
IVIX is the first purpose-built technology platform to combat the shadow economy. A powerful alternative to the manual processes, limited in-house tools and non-specialist vendor solutions currently in use, IVIX's innovative platform allows tax authorities to automatically analyze data to identify large-scale infringement in a highly accurate, resource-efficient manner. For more information, please visit https://www.ivix.ai/
About Team8 Capital
Team8 Capital is the investment arm of Team8 Group, focused on early-stage companies seeking seed and Series A and B funding rounds. We have a track record in backing future leaders pioneering new-generation solutions to meet critical industry challenges. Team8 Capital offers a unique combination of deep domain expertise and decades of company-building and investing experience, providing portfolio companies with a springboard to success.
Media Contact
Kourtney Evans, Bospar, +1 3234979506, [email protected]
SOURCE IVIX
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