CertifID, which helps prevent wire fraud in real estate deals, has reportedly collected $12.5m in its Series A funding round.
Arthur Ventures, a Minneapolis-based growth equity firm, served as the lead investor. As part of the deal, the firm’s general partner Patrick Meenan will join the CertifID board of directors.
CertifID claims it selected Arthur Ventures due to their vision being closely aligned.
With the funds, the RegTech company plans to extend scale its fraud recovery team. Capital will also support the launch of a solution that stops fraud in mortgage payoffs. Funds will also help offer greater support for commercial real estate transactions and enable transfer between validated funds.
CertifID, which was founded in 2017, following a personal experience for co-founders Thomas Cronkright and Lawrence Duthler. The duo previously owned Sun Title, a title agent based in Michigan, was an early victim to wire fraud.
After they lost around $200,000, they spent months trying to retrieve the funds, culminating in a testimony in front of the Department of Justice. This experience is what led to the creation of CertifID.
The RegTech company helps verify banking information and insure every transaction so they can save time and reduce risk for transactions. It claims business email compromise attacks are increasing, with over 6,000 businesses targeted each month.
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