Israeli AI powered tax evasion detection startup, IVIX, secured a $12.5 million Series A funding round led by Insight Partners with participation from Team8, Citi Ventures, and Cardumen Capital.
According to IVIX, each year, a staggering $20 trillion in global commerce is left untaxed, resulting in a yearly tax loss of about $1 trillion in the U.S. alone. The shadow economy, expanding in both conventional and novel sectors like crypto and e-commerce, burdens governments' capability to fund public services.
IVIX addresses this issue with their AI-powered solution, harnessing publicly available data to enable tax authorities to perform their duties more precisely and efficiently, thereby combatting tax evasion on a large scale. Their product is already adopted by several tax authorities worldwide, including the U.S. IRS Criminal Investigation Division.
IVIX was founded in 2021 by Matan Fattal (CEO and former Silverfort founder), and Doron Passov (CPO). The startup previously closed their $13 million Seed round in 2021 from Cardumen Capital, Team8 and Citi Group, bringing its total funding to $25.5 million (StartupHub.ai data). The startup attracted backing from angel investors Gil Shai (Acceloweb and CloudEndure founder), Ofir Ehrlich (Acceloweb and CloudEndure founder), Guy Nitzan (IntSights founder) and Or Offer (Similarweb founder), Amir Hirsch (Audioburst founder), as well as toDay.Ventures.
With the new funding, IVIX plans to take significant steps towards expanding its operations and further developing its proprietary AI technology.
Former IRS Chief of Criminal Investigation John D. Fort and former IRS commissioner Fred Goldberg have joined the startup's board.
