Thursday, January 20, 2011

Bank fraud scout Memento gets $5M fifth round

By Galen Moore

Memento Inc. has raised $5 million in an apparent inside venture round, according to a document filed this morning with federal regulators – the company’s fifth financing round since its founding in 2003.

Memento, a venture-backed company in Burlington, making fraud detection and compliance software, last closed a $2 million bridge loan in October from venture capital firms .406 Ventures, Bain Capital Ventures and Rock Maple Ventures, as well as private investors. The Form D filed this morning with federal regulators classifies the new round as equity and options, and does not list any new investors on the company’s board.

The new financing brings the company’s total fundraise to about $27.5 million. Memento makes software for financial institutions that crawls all channels by which customers can gain access to funds, flagging suspicious behavior or extraordinary activity identified using machine learning.

In October, the firm announced the appointment of John O’Malley, a self-described tech turnaround executive, as its CEO, replacing founder BC Krishna in the corner office. Krishna still holds a seat on the company’s board.