Inscribe.ai, a company that develops AI-powered fraud detection software, has laid off 40% of its staff. The layoffs come as the company faces financial difficulties and struggles to compete with larger rivals.
Inscribe.ai was founded in 2016 and has raised over $20 million in funding from investors such as Accel and Greylock Partners. The company’s software is used by some financial institutions to detect fraudulent transactions.
However, Inscribe.ai has faced increasing competition from larger rivals such as PayPal and Stripe. These companies have more resources and can offer their fraud detection software at a lower cost.
The layoffs at Inscribe.ai are a sign of the challenges facing smaller startups in the AI fraud detection market. These companies need to find a way to compete with larger rivals or they will be forced to shut down.