Ivix, an Israeli startup company with offices in New York that’s advised by some former top IRS officials, has received $12.5 million in Series A funding to help the company sell its artificial intelligence software to governments to help them crack down on tax evasion and other financial crimes.
The lead investor is Insight Partners with participation from Team8, Citi Ventures and Cardumen Capital. The company said Monday the funding would expand its capacity to help more governments identify financial crimes and close the tax gap. The company’s list of advisors includes former IRS commissioner Fred Goldberg, former acting IRS commissioner Kevin Brown, former IRS deputy commissioner Beth Tucker and former IRS Small Business/Self-Employed division commissioner Eric Hylton. Former IRS Criminal Investigation chief Don Fort was an advisor and is currently chief business officer. In 2021, the company received $13 million in seed funding (see story).
The company was founded in 2020 by CEO Matan Fattal and chief product officer Doron Passov in Tel Aviv. Its technology uses publicly available data, combined with AI to provide government customers with insights to address tax evasion. It’s currently used by the IRS’s Criminal Investigation Division and multiple states’ tax authorities, as well as some government tax agencies in other countries.
“IVIX has already helped cities, states and countries around the world recover billions in lost revenue and we’re excited about continuing our expansion with this new investment,” Fattal said in a statement. “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. We’re excited for this next phase of our business and look forward to helping more customers level the playing field.”