Serent Capital Invests in Pondera Solutions, The Leading Provider of Fraud Detection Solutions for Large Government Programs

Serent Capital Invests in Pondera Solutions, The Leading Provider of Fraud Detection Solutions for Large Government Programs

June 9, 2017

San Francisco, CA – June 09, 2017 — Serent Capital, a San Francisco-based private equity firm focused on investing in high-growth technology and services businesses, has made a growth investment in Pondera Solutions (Pondera), the leading software solution for combatting fraud, waste, and abuse in large government programs.

Pondera Solutions leverages advanced predictive algorithms and the power of cloud computing. Their core solution, Fraud Detection as a Service (FDaaS®), helps clients to detect and analyze claims, payments, and program participants, quickly sifting through massive data sets to identify and alert agencies to problems that require follow-up investigation. Because FDaaS uses machine learning and geospatial technology, it also continues to evolve over time, uncovering new and emerging methods of fraud. In operation since 2013, FDaaS has already saved states hundreds of millions of taxpayer dollars in Medicaid, Unemployment Insurance, Supplemental Nutrition Assistance Program (SNAP), Tax, and other large government programs.

“I’m very pleased that Pondera’s first institutional investment came from Serent Capital.  Serent is our ideal partner because of their operational capabilities and history of successfully growing companies like ours,” said Jon Coss, Founder and Chief Executive Officer of Pondera. “Serent’s industry expertise and business-building resources will accelerate our growth, enhance our products, and deliver even greater value to our clients in the coming years.”

Pondera’s award-winning software is supported by their Special Investigations Unit (SIU). The SIU employs certified fraud examiners, data mining experts, statisticians, and former government program integrity managers and law enforcement agents. Together, they design, deliver, and support the software which is literally “built by investigators, for investigators”.

“We have been exploring investment opportunities in state & local government for some time and feel privileged to partner with Jon and the Pondera team,” said David Kennedy, Partner at Serent Capital. “Pondera’s impressive client base, strong track record in identifying and preventing fraud, and product leadership in the fraud detection and prevention space lay a terrific foundation for long-term success. We are excited to work with the team to help accelerate the success they have had.”

About Pondera Solutions

Pondera Solutions was founded in 2011 with the singular focus of leveraging the power of cloud computing and advanced analytics to combat fraud, waste, and abuse in large government programs. Since that time, Pondera has helped clients, many of the largest state government programs in the country, to prevent and collect hundreds of millions of dollars in improper payments.Pondera offers a comprehensive cloud solution to help detect, investigate, and enforce fraud, waste, and abuse. The system combines program data with third party consumer and business data and then runs every business, beneficiary, and transaction through a series of procedural and prediction models.The system flags transactions that violate predetermined thresholds and sends an alert to an integrated dashboard “built by investigators, for investigators”.  Program integrity staff can then analyze the lead, use the system to investigate the lead, and even create and manage a case for ongoing enforcement activities. For more information, visit the company’s website at www.ponderasolutions.com.

About Serent Capital

Serent Capital invests in growing businesses that have developed compelling solutions that address their customers’ needs. As those businesses grow and evolve, the opportunities and challenges that they face change with them. Principals at Serent Capital have firsthand experience at capturing those opportunities and navigating these difficulties through their experiences as CEOs, strategic advisors, and board members to successful growing businesses. By bringing its expertise and capital to bear, Serent helps growing businesses thrive.

Serent Capital invests in growing businesses that have developed compelling solutions that address their customers' needs. As those businesses grow and evolve, the opportunities and challenges that they face change with them. Principals at Serent Capital have firsthand experience at capturing those opportunities and navigating these difficulties through their experiences as CEOs, strategic advisors, and board members to successful growing businesses. By bringing its expertise and capital to bear, Serent seeks to help growing businesses thrive. Learn more about our portfolio companies.

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