This Startup Catches Fraud at Scale

In this episode of Founder Firesides, YC Managing Partner Jared Friedman talks to Karine Mellata, co-founder of Variance (W23), who is coming out of stealth and announcing their $21 million Series A. Variance builds purpose-built AI agents for risk and compliance — automating fraud detection, content review, and identity verification for Fortune 500 companies and platforms like GoFundMe. They discuss why Variance built in the shadows for three years, detecting state-sponsored fraud rings, and the accident that nearly ended the company. https://www.variance.com/ 00:00 – $21M Raise: Coming Out of Stealth 00:49 – The AI That Keeps the Internet Safe 01:28 – Why They Stayed Secret for 3 Years 02:26 – You’ve Used This Without Knowing It 02:57 – How GoFundMe Stops Scams 03:59 – How Scammers Use Big News Events 05:50 – Checking IDs and Businesses Online 07:44 – How the AI Agents Work 09:28 – The Hardest Problem: Bad Data 12:07 – Why This Only Works Now 14:22 – Catching Organized Fraud Groups 16:26 – Tiny Team, Huge Output 20:18 – How They Met at Apple 22:24 – Getting Their First Customer 24:57 – Recovering from Getting Hit by a Truck 29:36 – Sticking to One Big Idea Apply to Y Combinator: https://www.ycombinator.com/apply Work at a startup: https://www.ycombinator.com/jobs

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