Prove Identity, the leading smartphone-based identity verification startup, has secured $40 million in its latest funding round. Although the exact valuation remains undisclosed, sources close to the company confirmed that it surpasses $1 billion. The funding will enable Prove Identity to expand its mobile-based authentication technology and enhance its offerings in digital payments, commerce, and fraud detection.
Key Takeaway
Prove Identity, the smartphone-based identity verification startup, has secured $40 million in funding, pushing its valuation above
billion. The company plans to use the funds to enhance its mobile-based authentication technology and expand its offerings in digital payments, commerce, and fraud detection. With a strong customer base that includes major financial institutions, retailers, healthcare companies, and insurance providers, Prove Identity is poised to revolutionize digital identity verification.
Advanced Identity Verification Made Simple
Prove Identity’s innovative technology leverages a phone’s SIM card and integrates it with smartphone features like facial recognition to authenticate users. This seamless process allows for efficient actions such as autofilling information, customer verification flows, and password-free authentication.
The company’s success is evident in its international business growth, with a notable 40% expansion in the past year. It currently serves approximately 1,000 business clients globally, and its strong financial performance has resulted in positive cash flow. Prove Identity plans to further strengthen its position by providing more tools for digital payments, commerce, and fraud detection.
The recent funding round is co-led by strategic backers MassMutual and Capital One. This investment comes at a time when digital identity is a critical topic, especially in light of the increasing cybersecurity breaches attributed to stolen identity credentials.
A Competitive Landscape
Prove Identity faces stiff competition in the digital identity space. Startups like Jumio, ThetaRay, and Fourthline are also developing AI-based approaches to address identity verification challenges. Additionally, private equity firms have shown interest in consolidating technologies and customer bases to achieve economies of scale.
Beyond the startup realm, Worldcoin, co-founded by OpenAI’s Sam Altman, is exploring a unique concept for digital identity. By using physical “orbs” that scan irises, Worldcoin aims to establish a network of digital IDs and link them to a new global cryptocurrency, as well as a payment app. While this project is still in its early stages, it has attracted significant investment and attention.
Prove Identity’s Impressive Customer Base
Prove Identity has successfully expanded its customer base, reaching beyond the realm of commerce. Currently serving nine of the top ten U.S. banks, two of the top three global cryptocurrency exchanges, three of the top five U.S. retailers, two of the top three U.S. healthcare companies, and six of the top ten U.S. insurance companies, Prove Identity has established itself as a trusted partner for major brands. Recent additions to its client roster include FanDuel, Experian, Visa, Starbucks, BlueCross BlueShield, and DocuSign.
Founded in 2008 during the early wave of smartphone adoption, Prove Identity initially focused on carrier billing as an alternative to credit cards. However, it soon shifted its focus to leveraging phone data for user verification, aiming to streamline e-commerce transactions and reduce friction. The company’s growth is underscored by the impressive performance of its tools, which offer 79% faster onboarding, a 35% reduction in abandonment, and a 75% reduction in fraud.
Continued Interest in Identity and Access Management
The global market for identity and access management is estimated to be nearly $16 billion in 2022. Investors continue to be drawn to new technologies and approaches that address the challenges of digital identity. Prove Identity’s strategic vision and success in the market align with this growing interest.
With the new funding and strategic backing from MassMutual and Capital One, Prove Identity is well-positioned to pave the way for secure and frictionless digital interactions. As Charles Svirk, a partner at MassMutual Ventures, aptly puts it, Prove Identity is “driving a paradigm shift in how businesses and consumers interact securely.”
