Socure announces $450M Investment

Socure announces $450M Investment

Socure, a leading provider of digital identity verification and fraud solutions, announced its significantly oversubscribed $450M round at a $4.5B valuation from a number of the world’s best growth equity and public market investors. The company achieved a $4.5B valuation just seven months after its $1.3B Series D, on the back of 500% year-over-year bookings growth and nearly $1B of investment demand, earning Socure the highest valuation for any private company in the identity verification space.

The round is part of a Series E transaction led by Accel alongside funds and accounts advised by T. Rowe Price Associates, Inc. It also includes two new investors, Bain Capital Ventures and Tiger Global, as well as participation from existing investors Commerce VenturesScale Venture Partners, and Sorenson Ventures.

Socure will substantially accelerate its investments in product innovation to address identity verification challenges across the entire digital consumer journey, penetrate new markets including the public sector, as well as continue to attract and retain the best product, data science, and engineering teams in the world. The capital will also allow Socure to maximize the scale and intelligence of its customer consortium data and fully-automated ID+ platform to not only prevent third party and synthetic fraud, but also address payment and first party fraud risk while enabling world-class self-service analytics capabilities.

Socure ID+ has become the preferred identity verification and fraud platform for enterprises of all sizes and is trusted by 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. The company is also accelerating its market leadership in telehealth, gaming, e-commerce marketplaces, and the public sector. Socure customers have also become investors in the company including Citi Ventures, Wells Fargo Strategic Capital, Capital One Ventures, MVB Bank, Voyager, and Synchrony. Other marquee customers include Chime, Varo Money, Public, Stash, and DraftKings.

Socure has emerged as the clear leader providing a complete identity verification and fraud platform with the highest adoption across all industries as it distanced itself from the competition with a 500% year-over-year bookings increase, 221% year-over-year customer growth, and five consecutive quarters of record year-over-year revenue growth. Last quarter, Socure also achieved an industry-leading net retention rate of 179% driven by near-zero attrition as its enterprise customers increasingly deployed multiple Socure products across various divisions, making Socure their complete fraud prevention, device, KYC, AML, and document verification platform.

Identity fraud continues to be fueled by the pandemic as more businesses and government agencies race to digitize, but with devastating consequences. In the private sector, according to Javelin Strategy & Research, identity fraud losses in the U.S. in 2020 reached a total of $56B. And in the public sector, 2020 identity fraud losses in unemployment alone totaled $400B.

Amidst the race to digitize, enterprises need to fuel their growth with new customers to remain competitive. Particularly those that are hard to identify including the 45 million+ group of U.S. citizens that are credit invisible, especially younger, thin-file 18-25 year olds and immigrants. Due to the unparalleled accuracy and inclusiveness of Socure’s KYC identity verification solution, if used exclusively across the country’s financial services industry, Socure’s technology could more than double the amount of automated approvals made in the U.S. in any given year for this population compared to legacy solutions.

Socure appoints Digital ID leader

Socure appoints Digital ID leader

Socure, a leading provider of digital identity verification and fraud solutions, today announced that Matt Thompson has joined Socure as General Manager of Public Sector Solutions. In this executive leadership role, Thompson will accelerate Socure’s growth and enormous success by bringing private-sector best practices and industry-leading identity verification solutions to the public sector. Thompson is a recognized thought leader and innovator in the digital identity space, with a proven track record of successfully working with government agencies and leading large-scale digital transformation projects.

Prior to Socure, Thompson led IDEMIA’s Civil and Digital Identity Business in North America, where he led the company’s efforts to drive the industry-wide transition from physical to digital driver’s licenses. He is an innovator in the identity industry, having co-founded ID.me, where he led the company’s entrance into the public sector and healthcare industries. He has also been awarded three patents covering mobile biometric liveness detection, as well as tiered and third-party authentication.

Thompson joins Socure at an opportune time, as government online systems are heavily reliant on the ability to remotely and accurately verify the identities of citizens. But, as the pandemic drove citizens online, those systems failed on a massive scale with 2020 identity fraud losses in unemployment alone totaling $400B.

“I believe that identity is the driver of government digital transformation. The public sector continues to move more interactions online, while the proportion of those interactions that are risky is increasing and has been exacerbated by the pandemic. This isn’t a cresting wave — it is a rising flood of interactions, and the legacy ways of determining who is on the other end of an interaction for fraud prevention and inclusion aren’t sufficient,” said Thompson. “My goal is to replicate the success Socure has had in the commercial space into the public sector, because we have the industry’s most accurate and inclusive identity verification and fraud detection platform in the market to answer that need.”

Thompson also currently serves as President of the Board of Directors for the Kantara Initiative. The Kantara Initiative is the leading global community commons improving the trustworthy use of identity and personal data through innovation, standardization and good practice. He formerly served as the Chair of the Management Counsel for The Identity Ecosystem Steering Group in support of the Obama administration’s National Strategy for Trusted Identities in Cyberspace.

“The entire Socure team is excited to partner with Matt to build the deep and long-lasting government partnerships that are required to solve the identity verification and fraud challenges that are rampant in the public sector today,” said Johnny Ayers, founder and CEO of Socure. “He brings a tremendous wealth of experience and market credibility to this role, and shares a personal vision that it’s our civic responsibility to be the first to equitably verify 100% of good identities in real-time, while completely eliminating identity fraud for every transaction on the internet.”