Neural Defend to Combat AI-Powered Fraud with Cutting-Edge Deepfake Detection

Neural Defend is a newly founded (2024) AI-powered cybersecurity startup based in Delhi, India, with US registration. The company specialises in real-time, multimodal deepfake detection using proprietary “agentic AI” technology.

Neural Defend has recently secured over $600,000 in a pre-seed funding round led by Inflection Point Ventures (IPV), with participation from MIT SBXI, Techstars San Francisco, and Soonicorn Ventures. This funding will be used to enhance their AI capabilities, advance R&D, and further product development.

Neural Defend aims to address the escalating threat of AI-generated digital deception, particularly in areas like identity protection and fraud prevention, targeting fintech companies, financial institutions, enterprises, and governments globally.

Focus on a Growing Threat

The startup’s focus on AI detection is due to the increasing and significant risk posed by AI-generated deepfakes and digital deception. Sources highlight alarming statistics, such as the 704% surge in deepfake-driven face swaps used to bypass identity verification in 2023, and a World Economic Forum report estimating global cybercrime at $10.5 trillion annually by 2025.

As co-founder Sivashankar Selvarajan stated, “Identity theft by the use of generative AI is emerging as one of the biggest threats for the future, perhaps second only to climate change.” The company was born out of the founders’ recognition of this growing problem and the fragmented nature of existing detection solutions.

Proprietary AI Technology

Neural Defend’s core offering is its “agentic AI” technology for real-time, multimodal deepfake detection. This means their AI models can identify manipulated content across various formats, including “video/ image, audio, real-time streams”.

They emphasise that their algorithms are proprietary, avoiding open-source dependencies, and they have already secured four patents. This is a key differentiator, as they aim to provide a more robust and scalable solution compared to traditional methods.

CEO Piyush Verma highlighted their technology, stating, “Unlike traditional methods, its proprietary AI models detect deepfakes across multiple data formats… ensuring robust fraud prevention for businesses and governments.”

Target Markets and Use Cases

Neural Defend is strategically targeting high-risk sectors where identity verification and fraud prevention are critical. These include “global enterprises, fintech companies and financial institutions,” “digital banks, fintechs, EKYC, verification companies, onboarding companies, insurance companies.”

Specific use cases mentioned include “Video verification and KYC use cases,” enhancing security in digital identity verification, securing video conferencing platforms, and detecting impersonation in online interviews. The company notes that over 150 million eKYC verifications are conducted annually, highlighting the scale of the potential market.

Funding and Growth Strategy

The successful pre-seed funding round of over $600,000 is a significant step for the nascent startup. The capital will be used to “enhance its agentic AI capabilities,” “further advancing R&D efforts and product development.”

Neural Defend is currently in the pre-revenue stage but is actively engaging with potential clients for “product validation and market expansion.” Their goal is to reach “$10 Mn in annual recurring revenue (ARR) within a year” and to expand globally by tailoring their solutions to specific industries.

Experienced Leadership

The founding team comprises individuals with strong backgrounds in AI, cybersecurity, and technology. Piyush Verma (CEO) is a two-time founder and former researcher at MIT, Harvard, and IBM R&D.

Sivashankar Selvarajan (CTO) is an IIT and IIM graduate with expertise in AI and cybersecurity, holding patents in face anti-spoof detection and having won the Intel Edge AI Award.

Sumit Singh (Chief Data Officer) has experience managing large-scale data pipelines. The investors also noted the strength of the team, with Vikram Ramasubramanian of IPV stating, “Their vision and early traction make them a compelling investment.”

Competitive Landscape and Challenges

While the opportunity is significant, Neural Defend faces competition from “35 active competitors, including 11 that are funded,” such as Pindrop Security, TRUEPIC, and Reality Defender. Furthermore, cybersecurity giants like McAfee are also entering the deepfake detection space.

This suggests that Neural Defend will need to continuously innovate and demonstrate the superiority of its “AI agentic, multimodal, real-time” technology to gain market share.

Mission and Vision

The founders are driven by a clear mission to combat digital deception and restore trust in digital content. Selvarajan stated, “Our goal was not just to create another AI business but to restore trust in digital content and provide people with a way to safeguard their identities.”

CEO Piyush Verma echoed this, saying, “Our goal is to protect real identities against digital deception through innovative AI agentic technology.” The company’s name, “Neural Defend,” reflects this commitment.

Key Facts and Figures:

• Funding: Over $600,000 raised in pre-seed funding.
• Lead Investor: Inflection Point Ventures (IPV).
• Other Investors: MIT SBXI, Techstars San Francisco, Soonicorn Ventures.
• Founding Year: 2024.
• Founders: Piyush Verma, Sivashankar Selvarajan, Sumit Singh.
• Technology: Proprietary “agentic AI” for real-time, multimodal deepfake detection (video, image, audio, real-time streams).
• Patents: Secured four patents.
• Target Markets: Fintech, financial institutions, enterprises, governments.
• Use Cases: Video verification, KYC, securing video conferencing, detecting online interview fraud.
• Global Cybercrime Estimate: $10.5 trillion annually by 2025 (World Economic Forum).
• Deepfake Detector Market Projection: $4.1 billion by 2032 (from $1.3 billion in 2024).
• Competition: 35 active competitors, including 11 funded companies.
• Pilot Projects: Underway in New York and Singapore.
• Goal: $10 million in annual recurring revenue (ARR) within a year.

Neural Defend appears to be a promising early-stage cybersecurity startup addressing a critical and rapidly growing threat in the digital landscape. Their focus on proprietary “agentic AI” for real-time, multimodal deepfake detection, coupled with an experienced leadership team and strategic targeting of high-risk industries, positions them well in the market.

The successful pre-seed funding provides capital for further development and market entry. However, they will need to navigate a competitive environment and demonstrate the effectiveness and scalability of their technology to achieve their ambitious growth targets.

The increasing awareness of deepfake threats and the urgent need for robust detection solutions suggest a significant market opportunity for companies like Neural Defend.