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Digital identity verification and fraud solution provider Socure has scored $450 million in what the company called a “significantly oversubscribed” Series E funding round. The investment comes just seven months after the company’s $100 million Series D round, and boosts Socure’s valuation to $4.5 billion.
“With this additional capital, we will substantially increase our level of commercial velocity and intensity in solving complex customer and societal problems, while maintaining our Day 0 founder’s mentality and continuing to attract the market’s best product, data science, and engineering minds to join our already incredibly talented team,” Socure founder and CEO Johnny Ayers said.
The Series E was led by Accel – along with funds and accounts advised by T. Rowe Price Associates. New investors Bain Capital Ventures and Tiger Global joined existing investors Commerce Ventures, Scale Venture Partners, and Sorenson Ventures in the round, as well. Socure’s total equity funding stands at $647 million.
The investment gives Socure the highest valuation of any private company in the identity verification market. The company’s identity verification and fraud-fighting platform Socure ID+ has gained meaningful traction in the enterprise, with four of the five largest banks and seven of the 10 largest credit card issuers embracing the technology. Add to this a host of major fintechs, Buy Now Pay Later firms, investment management companies, and crypto exchanges. Socure has enjoyed 5x year-over-year bookings growth, more than 2x year-over-year customer growth, and five consecutive quarters of record year-over-year revenue growth.
Additionally, Socure achieved a net retention rate of 179% which the company said was due to “near-zero attrition” as Socure’s enterprise customers deployed multiple Socure solutions across divisions at an increasing rate. The result has been to make Socure an all-in-one platform for fraud prevention, KYC, AML, and document verification in the enterprise.
“When you’re a market leader, you move from attacking and replacing the incumbents repeatedly as you earn your seat at the table to truly being a strategic partner to many of the best companies in the world,” Ayers said.
Socure will use the new capital to further invest in product innovation, enter new markets such as telehealth, gaming, e-commerce marketplaces, and the public sector, and add talent to the Socure team – especially in the areas of product development, data science, and engineering. The company also will use the investment to enhance both its customer consortium data and automated ID+ platform to address payment and first party fraud as effectively as it currently combats third party and synthetic fraud.
Founded in 2012 and making its Finovate debut a year later at FinovateFall, Socure has had a busy autumn in 2021, launching new fraud prevention solutions and adding a new Chief People Officer in September, plus reaching a 750 customer milestone early in October. Also in October, Socure announced a major commitment to deliver identity verification solutions to the public sector market, appointing Matt Thompson as its new General Manager of Public Sector Solutions.
“Many agencies lack the industry experience required to effectively manage identity verification and reduce fraud losses in the midst of accelerated digital transformation due to the pandemic,” Thompson explained. “Furthermore, the gaps within legacy identity solutions were exposed leaving numerous eligible people waiting extended periods of time for their benefits while enabling fraudsters to manipulate these same benefits at an unprecedented level. We are committed to solving this challenge for government agencies.”
Photo by Tara Winstead from Pexels