Venture Capital: Identity Verifying Platform Socure Reels In $450M Series E
The round valued Socure at $4.5 billion.
Just months after raising a $100 million Series D, Socure, a provider of digital identity verification and fraud solutions announced today its close of a $450 million Series E round led by Accel alongside funds and accounts advised by T. Rowe Price Associates, Inc. The latest funding also includes two new investors, Bain Capital Ventures and Tiger Global, as well as participation from existing investors Commerce Ventures, Scale Venture Partners, and Sorenson Ventures. (Socure)
Huge demand for Socure’s services
The rapid growth of digitization and e-commerce has unleashed massive demand for identity verification and fraud prevention.
The firm quoted figures from Javelin Strategy & Research that showed identity fraud losses in the U.S. in 2020 reached a total of $56 billion. And in the public sector, 2020 identity fraud losses in unemployment alone totaled $400 billion.
Socure has witnessed bookings increase of 500% year-on-year, 221% year-on-year growth of 221% and five consecutive quarters of record year-over-year revenue growth.
Four of the five largest banks, seven of the 10 largest credit card issuers, top Buy Now, Pay Later (BNPL) providers, top investment management firms, top crypto exchanges, and the majority of top fintechs use the Socure ID+ platform for identity verification and prevention of fraud.
How it works
- Socure’s identity resolution engine analyzes over eight billion records and more than 700 million good and bad identities to achieve the most accurate view of identity possible.
- Socure’s Sigma Identity Fraud solution utilizes over 17,000 features that analyzes every dimension of a consumer’s identity—name, email, phone, address, IP, DOB, SSN, device, velocity, network intelligence, and real-time consortium feedback data—all in a single product.
- Socure’s Predictive Document Verification solution employs patent-pending machine learning classification models that utilize inputs from computer vision algorithms, various dimensions of identity elements such as device and phone ownership, and selfie-to-document derived patterns.
- Socure’s KYC solution delivers auto-approval rates of up to 98% for mainstream populations, and up to 94% for hard-to-identify populations.
“Socure’s patented approach to AI and ML dramatically improves financial inclusion, democratizes access to services and benefits as well as eliminates unfair, bias-driven friction further differentiating it from competitors,” said John Curtius, Partner, Tiger Global. “The company also leads the market by significantly reducing fraud and customer friction in a single platform for companies across multiple online industries.”
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