Skip to main content

How a Start-up Helped Crack the Panama Papers

Every start-up hopes for a lucky break. Swedish company Neo Technology only found out it was getting one the day the Panama Papers made headlines around the world.

Journalists with access to the vast trove of data used the firm's open-source database to make sense of 11.5 million documents, including emails, images and spreadsheets, leaked from Panamanian law firm Mossack Fonseca.

Neo Technology's "graph database" literally connected the dots for them, helping find names of the rich and powerful and linking them to offshore accounts.

"I was blown away," co-founder and CEO Emil Eifrem said of the moment he discovered, just hours before publication, that the International Consortium of Investigative Journalists (ICIJ) had been using his product for the Panama Papers.

"It's such a sweet spot for our technology, that we have a very stark example," the 37-year-old Swede, who released his first free software project at just 16, told Reuters.

"It's been for a long time sexy for geeks. But now all of a sudden we can talk about it even to other people."

An ICIJ team had worked in secret for an entire year on the documents covering a period of almost four decades, revelations from which have shone a light on the financial schemes of the world's elites and caused public outrage.

While most databases use tabular searches which can find all the documents in which a name is mentioned, graph databases -- imagine a spider web of lines -- help reveal all the connections between those names and documents.

"You may have a prime minister connected to an address, and at that address someone else is living there who is connected to an account which is suspicious in some way," said Eifrem, speaking from Silicon Valley amid morning rush hour traffic.

"That's 1,2,3,4 hops which is impossible to do with any other technology."

Technology the Key

The ICIJ's data and research unit editor Mar Cabra said in a statement that Neo Technology's database had been key to its investigation of the Panama Papers.

The 2.6 terabyte data drop was so big that science news website Live Science has said it would take more than 41 years of nonstop operation to print out on an office laser printer.

Technology was essential to find news leads in the mountain of data. Nuix Pty Ltd, a little-known Australian developer, provided software that made millions of the scanned documents text-searchable.

Founded in 2007 in the southern Swedish city of Malmo, Neo Technology is now headquartered in San Mateo, California and employs about 120 people. It currently has around 200 paying clients, ranging from Walmart and eBay to banking groups like UBS.

Its technology is especially popular with online retailers who use it to give customers personal recommendations based on their own purchases and those of others. In banking, it is used for identity and access management and fraud prevention.

Eifrem lets investigative journalists use the free version of his software. "I'm not in the business to make money out of eight journalists who are trying to save the world -- that's not my business model," he said, laughing.

While the firm is not yet profitable, it is generating revenues from its enterprise edition, which has higher security and offers massive scalability and availability.

Eifrem said he believes the company can achieve profitability in 2017 and will probably not need more money to get there. It raised $20 million last year from the likes of Nordic venture capital firm Creandum, Fidelity Growth Partners Europe and Sunstone Capital.

Eifrem's dream is to take the company public on the Nasdaq or the NYSE, possibly in two or three years' time, although he is aware it could be an acquisition target for software giants like Oracle or Microsoft which are moving into graph databases.

"We are not for sale," he said. "We may very well get acquired one day, but that's not a dream."

Eifrem, whose wife is a journalist, is a big fan of the movie The Matrix, whose main character is Neo, a computer hacker who tries to free humanity from a virtual reality.

He speaks passionately about the future of investigative journalism lying largely in data-mining.

"I look forward to seeing it unfold," Eifrem said.

Popular posts from this blog

Virtual reality set to transform filmmaking

Chris Milk stepped onto a TED Conference stage and took the audience on an awe-inducing trip into the future of movies. While much of the early attention on virtual reality has focused on use of the immersive technology in video games, Milk and his US startup Vrse are using it to transform storytelling and filmgoing. "We have just started to scratch the surface of the true power of virtual reality," Milk said. "It's not a video game peripheral. It connects humans to other humans in a profound way... I think virtual reality has the potential to actually change the world." He had everyone in the Vancouver audience at TED , which ended Friday, hold Google Cardboard viewers to their eyes for what was billed as the world's collective virtual reality experience. Google Cardboard gear is literally that -- cardboard

Explained: Camera Improvements in the New HTC 10

With the HTC 10, the Taiwanese company is promising to undo the past wrongs in the cameras of its previous flagship phones. The camera has long a weak point in HTC devices. At first, HTC sacrificed image resolution in the M8 and made the size of individual pixels larger to capture more light (what HTC called Ultrapixel). But the resulting 4 megapixel images were often fuzzy, especially when cropped or enlarged. To fix the issue, in its next flagship - the M9 - HTC went with smaller individual pixels in a 20-megapixel camera last year, but it still underperformed in extreme situations, such as indoors and close-ups. In the HTC 10, the company attempts to strike a balance with larger individual pixels (1.55µm), but not as large as before and a 12 megapixel sensor in its camera coupled with a ƒ/1.8 lens. HTC accepts that in the imaging performance in the M9 was not up to the kind of spec of what they really like to see in a flagship. HTC is giving a slight boost to the selfi...

Freedom 251: 30,000 Units Sold, Components for Up to 2.5 Million Will Be Imported

Ringing Bells, the makers of the Rs. 251 smartphone - the Freedom 251 - confirmed to Gadgets 360 on Tuesday that it has still only accepted payments for 30,000 units of the phone. It also added that the components for these phones will be imported, and only assembled in India, not made here. Ringing Bells stopped accepting orders on February 19, and claims to have received over 70 million registrations. The company President and Director both repeatedly stated that the price of the phone would be made possible through economies of scale, and making the phone in India to cut out import costs. Economies of scale? However, in a discussion with Gadgets 360 the company revealed that it had only sold 30,000 units of the phone on day one. The company has now confirmed that it has not sent out the payment emails to anyone else who registered - "we were working out details of cash on delivery, which we are announcing now, so we will be sending emails to the first 2.5...