US-based online data authentication startup, Fakespot has raised $1 Million in seed funding from the early stage venture capital fund SRI Capital. The startup plans to use newly raised funding to improve its current products and launch new fake review detection services.
Commenting on investment in Fakespot, Sashi Reddi, the partner at SRI Capital, said “The trillion dollar e-commerce economy is based on consumer reviews and many of those are fake. Fakespot has now become the trusted source for millions of consumers to detect which reviews may be fake and assess the true quality of the product or service. We are excited to back Fakespot as it strives to make online commerce trustworthy again.”
The rise of fake reviews on major e-commerce and travel platforms has recently been highlighted by several major media outlets, including an article by David Pouge in Yahoo Finance. With e-commerce projected to comprise 17% of all U.S. retail sales by 2022, a number of sellers have resorted to posting fake and biased reviews to increase their sales. Fakespot’s platform works in real-time to warn consumers on inauthentic trends within reviews.
Saoud Khalifah, Fakespot’s founder and CEO, said “Our mission and primary goal is to make all online information trustworthy using technologies such as artificial intelligence and advanced data analytics. Fakespot was founded because I noticed that there has been an ever-increasing volume of inauthentic information published on the Internet. If left unchecked, user’s decisions can be swayed by false information. With SRI Capital’s investment and guidance, Fakespot has the perfect partner to expand and improve its services that prevent fake reviews from misleading consumers.”
Founded in 2016 by Saoud Khalifah, Fakespot uses patented algorithms that spot fake online product reviews on e-commerce platforms. The two-year-old startup uses several parameters that include verified purchase, writing style, grammar and spelling correlation, purchasing patterns and content correlation to spot fake reviews. It is trusted by millions of consumers to detect fake reviews on Amazon, TripAdvisor, Yelp, and the Apple App Store. The company claims to have analyzed over 2 billion reviews to date.