Software Company Socure Raises Funds at $1.3 Billion Valuation
(Bloomberg) -- Socure Inc., a software maker that helps companies verify users’ identities, is valued at $1.3 billion after a new funding round, its Chief Executive Officer said.
The New York-based company has raised $100 million from investors led by venture capital firm Accel, CEO Johnny Ayers said in an interview. Other investors include Citi Ventures, a unit of Citigroup Inc., Commerce Ventures, Scale Venture Partners and Wells Fargo Strategic Capital, a unit of Wells Fargo & Co.
The valuation is a steep increase from last year, when Socure was worth $360 million.
Socure helps companies that provide financial services verify that their customers are who they say they are. It uses machine learning to analyze how users typically behave online and flags what’s outside the norm.
The new funding will help the company expand its customer base in gaming, health care, telecommunications and e-commerce, as well as recruit talent.
The identity-verification industry has been growing as companies seek to crack down on online fraud. It’s also seen some consolidation. Okta Inc., which helps companies identify and authenticate employees, said it would buy rival Auth0 for about $6.5 billion in stock earlier this month.
It’s a competitive landscape, but Ayers said the company’s data and experience give it an edge.
“We’re going to be the first to be able to say we’ve completely eliminated identity fraud,” he said.
Socure is on track for annual recurring revenue that exceeds $100 million this year and should be in a financial position to go public by 2023, Ayers said.
As part of the round, Accel Partner Amit Jhawar will join the board. Jhawar, who was previously general manager at Venmo, said that he’s seen the importance of reducing fraud and warned that a stolen identity can be used for everything from money laundering to the sale of illicit drugs.
“Plugging into something like a Socure immediately helps you,” Jhawar said. “Now you have a collective knowledge,” he said, referring to the user behavior from other websites that Socure provides.
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