NEW YORK--(BUSINESS WIRE)--Socure, the leading platform for digital identity trust, announced today that it has received a strategic investment from Capital One Ventures, the venture arm of McLean, Virginia-based Capital One Financial Corporation. This latest investment comes on the heels of Socure’s $100m Series D raise led by Accel in March, which catapulted the company to unicorn status.
“Socure is the leading digital identity trust platform in the market. Large financial institutions and FinTechs use the platform for identity verification, fraud prevention, and regulatory compliance,” said Aman Sharma, Partner at Capital One Ventures. “Socure’s exceptional performance in fraud classification and identity coverage not only demonstrates the accuracy of their platform but underscores how they are bringing more eligible consumers into the digital services ecosystem as the company rapidly expands into new verticals outside of financial services.”
“Integrating Socure’s technology has meaningfully increased our accuracy in identifying fraud, resulting in a reduction in customer friction while also preventing additional fraud,” said Sarah Strauss, Senior Vice President, Head of Fraud & Servicing Strategy at Capital One. “As Socure continues to innovate, we are excited to deepen our engagement as we stay on the leading edge of identity fraud prevention.”
The immense growth in the digital identity market is part of the macrotrend of businesses moving toward digital-first online services, commerce, and transactions, including those services once defined by physical interaction and exchange. According to One World Identity, the U.S. digital identity market is projected to increase from just under $15 billion in 2019 to over $30 billion by 2023.
“We are thrilled to add Capital One to our expanding roster of strategic investors,” said Johnny Ayers, Founder and CEO of Socure. “We were fortunate to have met the venture as well as fraud and identity teams early on in Socure’s journey. We admired their focus and discipline as a data science and analytics-driven company and channeled that as we built Socure, with the result being that over 20% of our total headcount is in data science today. Over the course of years, the relationship evolved and Capital One has become one of our top clients. Now, we are excited to collaborate with them even more closely with this investment in Socure.”
The investment by Capital One Ventures will support Socure’s growth plans as it continues to expand across every consumer-facing vertical, including financial services, online gaming, healthcare, telco, e-commerce, on-demand services, and more. Socure is also actively recruiting top talent worldwide. Financial terms of the investment were not disclosed.
With Socure, B2C enterprises can achieve auto-approval rates of up to 94% as well as identity and synthetic fraud capture rates of up to 90% in just the riskiest 3% of users. When combined with Socure’s physical document authentication solution, Socure supports fully automated decisioning of up to 98%. Through a single, simple modularized API or SDK, the company’s ID+ platform maximizes accuracy at sign-up and transaction while capturing more fraud, reducing false positives, decreasing manual reviews, and providing unmatched population coverage. Socure enables the democratization of access to online services, including for thin-file, hard-to-identify consumers in the critical 18 to 25-year-old demographic.
The Series D funding round that was announced last month lifted Socure’s valuation to $1.3 billion, clearing the path to a potential IPO. The round, which was led by Accel, brought Socure’s total funding to $196 million and included participation from existing investors Commerce Ventures, Scale Venture Partners, Flint Capital, Citi Ventures, Wells Fargo Strategic Capital, Synchrony, Sorenson, Two Sigma Ventures, and others.
Socure is the leading platform for digital identity trust. Its predictive analytics platform applies artificial intelligence and machine learning techniques with trusted online/offline data intelligence from email, phone, address, IP, device, velocity, and the broader internet to verify identities in real time. The company has more than 400 customers across the financial services, gaming, telecom, and e-commerce industries, including three of the top five banks, seven of the top 10 card issuers, three of the top MSBs, the top payroll provider, the top credit bureau, and over 100 of the largest and most successful FinTechs. Marquee customers include Chime, Varo Money, Public, Stash, and DraftKings. Investors include Accel, Commerce Ventures, Scale Venture Partners, Flint Capital, Capital One Ventures, Citi Ventures, Wells Fargo Strategic Capital, Synchrony, Sorenson, Two Sigma Ventures, and others.
Socure has received numerous industry awards and accolades, including being named to Forbes America’s Best Startup Employers 2021, being awarded Best New Technology Introduced over the Last 12 Months – Data and Data Services at the 2020 American Financial Technology Awards (AFTAs), being ranked number 70 in Deloitte’s Technology Fast 500™, being listed as a Gartner Cool Vendor, being recognized by Forbes as one of the Top 25 Machine Learning Startups to Watch, being named to CB Insights: The FinTech 250, and being awarded Finovate’s Award for Best Use of AI/ML, to name a few.