Market Insights

Friday Dealbook: Getting Onboard with Verification

3/26/21

Victor Appelqvist

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This week’s most impactful deals reflect investor interest in funding platforms increasing their offerings for identity and document verification, and KYC use cases. Most notably, Jumio raised $150 million of development capital, and ID.me raised $100 million of Series C to develop their technology stack further, expanding the breadth of their identity verification solutions. Middesk’s $16 million of Series A venture funding in a deal to expand their identity verification solutions and to introduce a new product, also showcases this trend. 

 

In the public market, Equifax’s undisclosed acquisition of i2verify, an income and employment verification software solution, reflects the increase of businesses requiring more robust identity verification for internal processes and not only for onboarding flows.

OWI Focus

Top Deals This Week

Jumio
jumio.com
2010

Developer of an online identity management software designed to reduce business fraud and increase revenue. The company develops image-recognition technology for mobile phones protecting the ecosystems of businesses through cutting-edge online identity verification and authentication services that accurately connect a person's online and real-world identities through technology that includes informed AI, biometrics, machine learning, certified 3D liveness detection and human review, enabling organizations to meet regulatory compliance. 

 

The company received $150 million of development capital from Great Hill Partners on March 22, 2021.The investment will accelerate Jumio’s significant global lead in the digital identity space by devoting additional resources to automate its identity verification solutions, expand the breadth of the Jumio KYX Platform and grow its suite of AML compliance services. 

ID.me
id.me
2010

Developer of an identity platform designed to make group affiliation verification easy and secure. The company's platform streamlines authentication, identity proofing, and federation of external identity and attributes providers through a single API, enabling military, students, first responders, teachers, and government employees to easily prove their identity online via a single login and avail discounts on various networks.

 

The company raised $100 million of Series C venture funding in a deal led by Viking Global Investors on March 18, 2021, putting the company's pre-money valuation at $1.4 billion. CapitalG, PSP Partners, alongside 10 other investors also participated in the round. The funding will be used to build out the company's secure digital identity network by attracting top talent and expanding the number of businesses and government agencies it serves.

Middesk
middesk.com
2018

Developer of an enterprise platform designed to help companies manage risk and compliance at scale, with minimal friction. The company's platform permits organizations to capture, verify and monitor business credentials for contractual and regulatory compliance and centralizes the credentialing process, enabling clients to accelerate onboarding and increase efficiency.

 

The company raised $16 million of Series A venture funding in a deal led by Sequoia Capital on March 24, 2021. Accel and Y Combinator also participated in the round. The funds will be used to expand their product suite with Middesk Agent, a new service designed to make it easy for employers, especially those hiring employees in new states, to set up payroll tax accounts.

Spotlight

Investor Highlights

CapitalG
capitalg.com
2013

Founded in 2013, CapitalG is a corporate venture capital firm based in San Francisco. The firm helps remarkable entrepreneurs accelerate the growth of their businesses. The firm partners with transformational companies as they navigate the challenges of scaling by connecting them to the latest technology and brightest minds at Alphabet. The firm has worked with many of the most consequential technology companies of the decade, such as Stripe, Credit Karma, CrowdStrike, Duolingo, Zscaler, and more. The firm seeks to invest in the information technology sector.

Active Portfolio - 33

Investments (TTM) - 19

Med. Round Amount - $100.43M

Med. Valuation - $1.25B

# of Exits - 26

ID.ME

Armis

MX

Collibra

SPOTLIGHT
Public Highlights
Equifax
equifax.com
1899

Equifax is one of the leading credit bureaus in the United States. Equifax's credit reports provide credit histories on millions of consumers, and the firm's services are critical to lenders' credit decisions. In addition, about a third of the firm's revenue comes from workforce solutions, which provides income verification and employer human resources services. Equifax generates over 20% of its revenue from outside the United States.

 

Equifax announced Wednesday that it has closed the acquisition of i2verify, an income and employment verification provider.  With this acquisition, Equifax expands its suite of automated verification capabilities and brings incremental efficiencies to both consumers and credentialed verifiers. Known for pioneering the automation of income and employment verifications, Equifax, through its flagship service - The Work Number® - has helped to digitize and accelerate billions of critical decisions that consumers need for credit, employment, social services, and more.

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