Israeli identity validation startup Identiq announced on Wednesday that it had raised a $47 million Series A funding round.
The round was led by Insight Partners and Entrée Capital with additional participation from Amdocs, Sony Innovation Fund by IGV, and existing investors, including Vertex Ventures Israel, Oryzn Capital and Slow Ventures.
Tel Aviv-based startup Identiq says it is building the world’s largest Identity Validation Network, enabling companies to jointly validate consumer identities, payment details and other sensitive information without sharing or exposing any private data.
The network’s hyper-growth over the last year has been driven by leading consumer-focused organizations (members) who have for too long experienced data theft, privacy challenges, and frequent attacks by fraudsters posing as real users.
Identiq’s proprietary technology compares a new user’s details against identities already trusted by other network members, and 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.
“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.”
The company plans to use the investment to further accelerate its network growth, adding more members, each of which will improve the validation, quality and coverage for all members. This flywheel effect will drive further value for the network’s existing members, improving data coverage and accuracy.
“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.”