Identity management startup Authenteq has held a $5m first close for its Series A, with plans to hold a second close in coming weeks.
The initial capital injection has been led by Draper Associates and capital300. It is unclear how much a second close would raise, but Authenteq CEO Kari Thor Runarsson is reportedly in discussions with a few investors.
Authenteq is an AI-powered automated identity verification solution which helps enterprises to comply with KYC and AML regulations. The platform enables consumers to verify their identity and establish their own digital ID stored on an encrypted blockchain platform. Users can use their digital ID at third-party apps for their onboarding processes.
The app uses AI-driven liveness detection which identifies whether the person signing up is alive and not a photo. Consumers can signup to Authenteq in 60 seconds and have complete control over their personal information.
With the capital raised in the round, the company is looking to hire more staff for its Iceland and Germany-based offices.
Capital300 founder Peter Lasinger said, “We have been looking at the space and see that the need for KYC and identity verification solutions is huge and growing further. We are excited that Authenteq’s unique technology is disrupting the existing process and enables an affordable and fully automated identity verification, at the same time ensuring the privacy of users.”
Late last year, identity solutions provider HID Global released a new subscription-based model for identity and access management software. Its new HID ActivOne is an end-to-end digital identity management and authentication solution which provides organisations tools to verify identities, and secure critical data and assets.
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