Identiq has closed a seed round on $5m, alongside the launch of its Anonymous Verification Network.
Venture capital firm Entrée Capital led the round, with contributions also coming from Slow Ventures, Vertex Ventures Israel and Oryzn Capital.
The Anonymous Verification Network is a distributed ledger which lets members validate their new users without needing to share any personal data. Identity can be verified at a range of moments in a customer journey, such as onboarding or the first payment, and does this by making connections between data points like an email, phone, address, IP, device or funding source.
Conducting verification in this way boosts accurate decisions, lowers declines, reduces fraud, and improves customer experiences, Identiq claims.
Contrary to how other identity systems use large databases of private and personal information, Identiq does not collect, share or store any user data. Its FAIR (Fully Anonymous Identity Resolution) technology leverages cryptographic protocols to obtain validation from other network members while maintaining privacy.
Last year, Entrée Capital took part in the $7m Series A of serverless security company PureSec. The RegTech empowers organisations to build secure, serverless applications which have real-time protections. Its system can detect and block any attempts to subvert function logic or perform malicious actions.
Identity solutions saw the largest amount of deals within the RegTech sector, RegTech Analyst data shows. Of the 164 deals completed within the RegTech sector during 2018, 19.7 per cent (32) involved identity management companies.
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