Brand protection firm Ennoventure raises $8.9m

US brand protection and authentication specialist Ennoventure has raised $8.9m in first-round financing that will be used to expand its software-as-a-service (SaaS) platform on the international stage.

The company's technology relies on the use of digital signatures that can be integrated into product packaging, are invisible to the naked eye, and can be authenticated using a smartphone.

There are plenty of companies operating in that area, but Ennoventure reckons that its encryption technology – which combines artificial, cryptography, and blockchain technologies and runs off a cloud-based process that is agnostic of any manufacturing or packaging process – gives it an edge in the marketplace.

The Cambridge, Massachusetts-based startup claims the signatures can be added to a product's packaging within 48 hours, without affecting the current artwork, and does not need any specialist printers or scanners.

The Series A – led by Singapore-based venture capital firm Tanglin Venture Partners and backed by existing investors, including Fenice Investment Group – will allow Ennoventure to "scale operations globally, strengthening its footprint in the US, UAE, India, and beyond," said the company in a statement.

So far, Ennoventure has been working mainly with clients in the fast-moving consumer good (FMCG), automotive and industrial spare part, agrochemical, and pharmaceutical industries.

"Securing this investment is a significant milestone in our journey to become the go-to partner for brands looking to protect their products and reputations," said Padmakumar Nair, Ennoventure's chief executive.

"With the support of our investors, we are well-positioned to lead the charge in delivering innovative, AI-powered solutions that empower brands to stay ahead of the curve in a fast-evolving market."

In 2019, global illicit trade in counterfeit and pirated goods amounted to $464bn, or 2.5 per cent of world trade, according to the Organisation for Economic Co-operation and Development (OECD). The organisation says the value of the trade in fakes is close to the entire GDP of advanced OECD countries such as Austria and Belgium.

Meanwhile, the market for anti-counterfeiting technologies used on packaging is predicted to rise from a value of just over $62bn in 2020 to more than $116bn by 2031, according to estimates from Allied Market Research.