Arkose Labs closed a $22 million Series B round led by Microsoft's venture arm, M12, with existing investors PayPal and USVP also participating, bringing the company's total funding to more than $36 million. Finovate reported that the new capital would fund platform development, global expansion, and hiring, following a year in which Arkose Labs nearly doubled its customer base and rolled out new capabilities for its Detect risk engine and Enforce step-up mechanism. Microsoft's Global Head of M12, Nagraj Kashyap, noted that multiple Microsoft businesses were already using Arkose's fraud-fighting technology, while Microsoft's Director of Identity Security, Alex Weinert, credited the platform for cutting fraud without disrupting legitimate customers. CEO and founder Kevin Gosschalk said Arkose's platform had detected and prevented $500 million in fraud attacks over the prior twelve months, saving customers significant losses and operational costs.
