IVIX Closes $12.5 Million Series A to Expand AI Tax Evasion Detection Platform

IVIX Closes $12.5 Million Series A to Expand AI Tax Evasion Detection Platform
Image Credit: Ivix

IVIX, an Israeli-based AI startup focused on detecting large-scale tax evasion and financial crimes, has raised $12.5 million in Series A funding. The round was led by Insight Partners, with participation from Team8, Citi Ventures, and Cardumen Capital.

The company will use the new capital to accelerate research and development efforts and support global expansion plans. This marks a significant milestone for the 2-year old company, which is already working with major government agencies around the world and in the US, including the IRS Criminal Investigation Division, and tax agencies across multiple states.

This wide-ranging adoption has also attracted the attention of industry veterans: Don Fort, ex-IRS Chief of Criminal Investigation, now serves as IVIX's Chief Business Officer, and former IRS commissioner, Fred Goldberg, and Deputy Commissioner, Beth Tucker sit on the advisory board.

IVIX was founded in 2020 by CEO Matan Fattal and CPO Doron Passov, both former members of elite intelligence units in Israel. The platform leverages publicly available data, enriched by AI and machine learning, to illuminate business activities that may be concealing unreported revenue.

This helps tax authorities identify potential tax evasion at scale. Ivix claims their technology has already helped governments recover billions in lost tax revenue.

The problem IVIX aims to tackle is substantial. Globally, at least $20 trillion in business activity goes unreported each year, resulting in over $1 trillion in annual US tax loss alone. New channels like crypto and e-commerce are exacerbating the issue.

"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." - CEO Matan Fattal

The Series A round builds on IVIX's previous $13 million seed funding in 2021, led by Team8. The latest raise validates the early traction IVIX has achieved. The company is expanding quickly as more states and countries adopt the platform.

The rise of sophisticated tax evasion tactics in today's digital era necessitates an equally advanced response. However, as more authorities and institutions adopt AI, safeguards will be needed to prevent misuse and ensure fairness. Oversight and accountability around how these tools are built and deployed will be critical.

Chris McKay is the founder and chief editor of Maginative. His thought leadership in AI literacy and strategic AI adoption has been recognized by top academic institutions, media, and global brands.

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