Israeli-based fraud prevention startup Identiq today announced it raised $47 million Series A round. The goal of the round is to fuel its global growth, driven primarily by the accelerated eCommerce usage as a result of the COVID pandemic.
The round was led by Entrée Capital and Insight Partners, with participation from Amdocs, Sony Innovation Fund by IGV, as well as existing investors Oryzn Capital, Vertex Ventures Israel and Slow Ventures.
Identiq’s proprietary technology, which compares a new user’s details against identities already trusted by other network members, brings a new level of data quality and “up to the minute” accuracy to the industry.
Identiq’s protocol and novel approach offers global organizations a higher-
fidelity, lower cost, and more secure alternative to third-party data providers, which tend to charge a high amount for stale information on user identities.
“Identiq has reached critical mass, and we are excited for the network effect that will continue to accelerate its rapid growth,” said Jeff Horing, Insight Partners Co-Founder and Managing Director, who will be joining the Identiq board of directors. “Insight Partners has a history of backing category-defining companies, and Identiq has all the makings of one. They are already enabling the largest companies in the world to collaborate in fighting fraud and solving the most complex data and privacy issues. We look forward to utilizing our ScaleUp engine, Onsite, to help Identiq scale their go-to-market and product initiatives.”
“Our ability to lead the market is further validated by the conviction of our investors,” said Itay Levy, CEO of Identiq. “We’ve proven that privacy is a powerful enabler, with Fortune 500 companies relying on our network to positively identify and validate their users. This guarantees that a trusted
user will always have the fastest and best possible experience when dealing with member companies.”
Many leading companies have already voiced their support for the solution. Gen Tsuchikawa, CEO and Chief Investment Officer of Sony Innovation Fund by Innovation Growth Ventures (IGV), said “Identiq’s innovative approach to identity validation is disruptive for consumer-facing companies, that need to keep fraudsters away but want to enable frictionless customer experiences, while safeguarding users’ private data. We are excited to support Identiq’s unique vision going forward.”