Digital Reasoning Systems Inc., which formed in 2000 and initially provided its cognitive-computing software to U.S. defense and intelligence customers, has raised $40 million amid an expansion of business into other markets.
Lemhi Ventures and Nasdaq Inc. are leading the Series D round, which also included prior investors Goldman Sachs Group and HCA Holdings. The company has raised $75 million in total.
Digital Reasoning technology enables clients to use data to detect potential threats. Clients don’t have to provide their data to Digital Reasoning. Instead, the company provides them with software that they can apply to their data.
After the Sept. 11, 2001 terrorist attacks, defense and intelligence customers used the software to monitor communications and head off potential attacks. About four years ago Digital Reasoning expanded into financial services, where companies are looking to improve surveillance of employee communications to prevent actions that are unlawful or in violation of company policies.
In addition to preventing harmful actions before they occur, clients can use the technology to detect suspicious trading activity that should be investigated, according to Marten den Haring, chief product officer.
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