The new capital will go toward R&D, including adding capacity to “help more governments identify financial crimes and close the tax gap,” according to a statement from the company. Money also will go toward global expansion. The company operates in the U.S., Europe and Asia.
Insight Partners led the round, which also included Team8, Citi Ventures and Cardumen Capital.
Just more than two years ago, IVIX raised $13 million in seed funding in a round led by Team8 that also included Citi, Cardumen and private investors.
The company launched in 2020, and its co-founders are two entrepreneurs with experience in Israeli intelligence services.
IVIX’s main sales pitch goes like this: Cash-based industries such as construction, along with the growth of cryptocurrency and e-commerce, have led to nonpayment or underreporting of more taxes, which in turn costs U.S. taxing authorities $1 trillion annually. That harms such governmental activity as infrastructure, education and health care.
IVIX’s technology, which uses artificial intelligence and machine learning, digs into public business and tax data to give taxing authorities a deeper view of those lost revenues and the so-called shadow economy, according to the company’s statement.
The company says that several U.S. states and the IRS use the platform. At least two former IRS officials work for or advise the company, IVIX said.
“IVIX has already helped cities, states and countries around the world recover billions in lost revenue and we’re excited about continuing our expansion with this new investment,” Matan Fattal, CEO and co-founder of IVIX, said in the statement. “We’re proud to give governments the tools they need to gain visibility into the shadow economy, and our Series A success is a testament to both our history of success and potential for growth.”
