IVIX, the first technology platform intended to fight the shadow economy, closed a $13 million seed round, led by Team8 with the participation of Citi Ventures, Cardumen Capital and other private investors. The financing will enable IVIX to grow significantly, recruit staff and develop its sales and marketing networks.
IVIX was founded in 2020 by Matan Fattal, who serves as the company's CEO, and Doron Passov, who serves as the CPO. Fattal, a veteran of the IDF's 8200 Unit who was the founder and CEO of Silverfort, a leading cybersecurity company, served for a decade in various research and development positions, including at Intucell that was acquired by Cisco in 2013 for about $500 million.
Passov, a veteran of the IDF's 81 Unit, was previously a senior product manager at Gita Technologies who led the development of cyber products that were deployed around the world. He also previously worked at Claroty, (one of Team8's portfolio companies) as a cybersecurity advisor. IVEX, located in Tel Aviv, currently has 12 employees, mostly in Israel. The company is planning to use the funding to recruit about 40 more employees, including about 20 for the company's research and development center in Israel.
The amount of global tax evasion reaches around $20 trillion each year, resulting in $6 trillion in lost revenue annually. The solution of IVIX is intended to enable tax authorities, which currently depend on manual processes and limited tools, to significantly reduce the amount of tax evasion as well as promote deterrence. The company's AI-powered technology efficiently analyzes the internal data of the tax authorities as well as public data sources to identify tax evasion and fraud, even on a large scale.
The platform of IVIX, which is currently deployed in several OECD countries, has helped tax authorities identify a significant amount of tax evasion quickly and with great precision, including in fields in which more than 50% of businesses did not report their income.
Matan Fattal, CEO and co-founder of IVIX, said "We are delighted to have closed our seed funding round, led by Team8 Capital. Clients across different geographies have told us time and again that the IVIX platform is a game-changer. Our ability to scale combined with our accuracy rate that exceeds 98% is transforming authorities’ ability to deter tax evasion, increase compliance and level the playing field."
Sarit Firon, Managing Partner at Team8 Capital, said "We are very excited to invest in IVIX, the first purpose-built, tech-led platform designed to illuminate the shadow economy. There is no similar company in this space. IVIX’s tailored algorithms and collection capabilities allow tax authorities to automatically detect an entity’s activities to ensure accurate assessment of tax liability."
Ornit Shinar, Head of External Innovation and Ventures Investments in Citi Israel, said "IVIX’s technology and approach supports governments’ efforts to identify tax evasion and fraud and we see significant opportunity in the space. We have worked with the co founders and their team in the past, investing in their development of groundbreaking technologies and look forward to working with them once again."
Fred Goldberg, IRS Chief Counsel, Former IRS Commissioner, IRS Chief Counsel, and Assistant Security Tax Policy and Advisor to IVIX, said: "IVIX is a leader among those paving the way forward, empowering tax authorities with tools to help battle tax fraud and promote compliance."