- Socure proves identity verification is better than ever.
- It uses AI and machine learning to verify identities.
- Socure has more than 350 customers across the top 3 banks.
- The startup’s predictive analytics platform applies artificial intelligence and machine-learning techniques.
Socure Inc. is a software maker that helps companies verify users’ identities. It is valued at $1.3 billion after the funding round, its Chief Executive Officer said. The New York-based company has raised $100 million from investors led by venture capital firm Accel, CEO Johnny Ayers said in an interview. Other investors include Citi Ventures, a unit of Citigroup Inc., Commerce Ventures, Scale Venture Partners, and Wells Fargo Strategic Capital, a unit of Wells Fargo & Co.
The valuation is a steep increase from last year when Socure was worth $360 million. Socure helps companies that provide financial services verify that their customers are who they say they are. It uses machine learning to analyze how users typically behave online and flags what’s outside the norm.
Socure raises $100 Million in Series D Funding Round.
As it raises $100 million in a Series D funding round at a $1.3 billion valuation. Given how much of our lives have shifted online, it’s no surprise that the U.S. digital identity market. As it is projected to increase to over $30 billion by 2023 from just under $15 billion in 2019, according to One World Identity.
This has led to skyrocketing demand for the services provided by identity verification companies. The round comes less than six months after the company raised $35 million in a round led by Sorenson Ventures. And it also brings the New York-based company’s total raised to $196 million since its 2012 inception.
Accel led Socure’s latest financing, which included participation from existing backers. It includes Commerce Ventures, Scale Venture Partners, Flint Capital, Citi Ventures, Wells Fargo Strategic Capital, Synchrony, Sorenson, Two Sigma Ventures, and others.
Socure founder and CEO Johnny Ayers talk about his company’s identity.
Socure founder and CEO Johnny Ayers says his company’s identity management products. It can help B2C enterprises achieve know-your-customer (KYC) auto-approval rates of up to 97%. This means that financial institutions can more easily capture fraud, for example, via Socure’s single API.
The company also claims that more easily verifying thin-file (those without much credit history) and young consumers, can help reduce the underbanked population. The new funding will help the company expand its customer base in gaming, health care, telecommunications, and e-commerce, as well as recruit talent.
The identity-verification industry has been growing as companies seek to crack down on online fraud. Okta Inc., which helps companies identify and authenticate employees, said it would buy rival Auth0 for about $6.5 billion in stock earlier this month.